A pawnshop makes loans to people in exchange for personal property that will be stored with the lender until it is redeemed according to the agreed-upon terms or until the pawn contract defaults.
All pawnshops in Florida are required to apply for and obtain a license each year from the Florida Department of Agriculture and Consumer Services (FDACS). Each pawnshop must maintain a net worth of at least $50,000 or file security in the form of a surety bond, letter of credit, or certificate of deposit in the amount of $10,000. FDACS is authorized to impose penalties of up to $5,000 for noncompliance of the law.
Frequently Asked Questions
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What is the maximum interest/service charge a pawnshop can charge per month?
Twenty-five percent.
Is a pawn legal if I do not have a written contract?
No. Always get your pawn transactions in writing on a pawnbroker transaction form.
What happens if my merchandise is lost or stolen while in the pawnbroker's possession?
The pawnbroker may replace your item with like kind of merchandise of equal value. If you are not satisfied with what is offered, you may file a complaint with FDACS.
What if I have a complaint about a pawn transaction?
FDACS regulates pawnbrokers. If you have reason to believe you were treated unfairly you may file a complaint with us. In most cases FDACS will require a pawnbroker to post security with us in order to be licensed by the state of Florida.
Does the pawnshop have to grant an extension on a pawn?
No, but according to the Pawnbroking Act you have 60 days from the date of the pawn to pick up your merchandise with payment of principal and finance charge.
Is there a limit on the number of extensions that may be given on a pawn?
No. Section 539.001 11(b), Florida Statutes (F.S.), states there is no limit on the number of extensions that the parties may agree to. Extensions are by mutual agreement between the pledgor and the pawnbroker.
What is the definition of default date?
Section 539.001(2)(s), F.S., defines default date as the date that the pledgor's right to redeem expires.
Can a default date be extended at any time before the pawn goes into default?
Yes. According to Section 539.001(11)(b), F.S., the pawn may be extended to a subsequent date by mutual agreement between the pledgor and the pawnbroker.
Can law enforcement take possession of misappropriated merchandise?
If a hold order has been placed on the merchandise, a pawnbroker must release the property for use in the investigation, but the pawnbroker retains property rights until a court orders differently.
