Pawn Broker Compliance:

It is generally the case that Pawn Brokers are required to be licensed with NSW Fair Trading. Pawn Brokers may need to provide to clients with the following four notices:

• A notice about fees and charges;
• A notice about interest rates;
• A notice about the redemption (return upon repayment) of pawned goods;
• A notice of a pawn broker's rights and obligations.

The Personal Property Securities Register may add a further layer of complexity to disputes involving personal property which has been pawned. It is an unfortunate fact that many criminal syndicates may exploit the business of pawn brokers to process stolen or misappropriated goods. For this reason, it is essential for owners of pawn brokerages to conduct due diligence before entering into any transaction or dealing in relation to property.

If you are the owner of a pawn broking business and suspect that there may be some irregularity in respect of an item that is in your custody, it is important to seek legal advice before continuing to deal with that item as you may also be at risk of being accused of any impropriety or criminal activity pertaining to that item. If a complaint or an allegation of negligence has been made against you in relation to a dealing with an item for some other or related reason, this too is something that you should seek legal advice on before taking any further steps in your matter. Complaints and allegations against you and your business can have severe repercussions even if they are unfounded.

We recommend that you contact our firm on (02) 9233 4048 or send an email to info@navado.com.au and arrange an appointment to see one of our Compliance & Regulatory Law Solicitors.

This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.