04 Feb Legal Requirements for Boca Raton Pawn Shop Owners

Looking for a Boca Raton Honest Pawnbroker?

Pawn shops are sometimes depicted as unregulated businesses that operate outside the normal confines of the law. In fact, nothing could be further from the truth. Pawn shop owners and operators must comply with numerous regulations and restrictions to be allowed to operate a pawn shop in Florida.

Chapter 539 Section 001 of the Florida Statutes is better known as the Florida Pawnbroking Act. This statute outlines the requirements for licensure as a pawnbroker, the grounds for suspension of a pawnbroking license and the penalties for violating the standards established for the operation of a pawn shop in the state of Florida. Understanding the requirements for operating a Boca Raton pawn shop can help you to determine if the services offered are right for you.

A Pawn Shop License Is Required

The Florida Pawnbroking Act requires that applicants for a pawnbroker’s license meet the following criteria:

• Applicants must be of good moral character.
• They must have a net worth of at least $50,000 or must post a bond of $10,000 for each license requested. Documentation and supporting financial records must accompany the application for a license.
• Applicants for a pawnbroker’s license must have no felony convictions within the last 10 years. They will be fingerprinted and subject to a background investigation before the license can be approved.

These requirements are in place to ensure that applicants for pawnbroker’s licenses are honest and that they have the financial resources in place to operate these businesses successfully.

Accurate Recordkeeping Is Necessary

Under the provisions of the Florida Pawnbroking Act, pawn shops must retain certain records for a full year. These include secondhand dealer transaction forms, which must contain the following information:

• Seller information, including the name, address, physical description and the right thumbprint of the seller
• A detailed description of the item being pawned or sold, including the model number, type of precious metal or gemstone, the color or other general information as applicable
• Any damage, markings or information that could potentially be used to identify the item at a future date

These records must be maintained and presented for review upon request by law enforcement to ensure that your Boca Raton pawn shop operates within the absolute letter of the law.

Pawn Shops Are Subject to Unannounced Inspections

According to the laws of the state of Florida, all pawn shops are required to open their records and to allow law enforcement officials to look over their inventories and their records at any time. This ensures that police and other investigators can access information that could be helpful in prosecuting theft or other criminal activity. Your Boca Raton honest pawnbroker acts as a partner to law enforcement officials in helping keep crime rates low in your community.

Each Boca Raton Pawn Shop Is Governed by Federal Law

Pawn shops in Boca Raton must stay in compliance with a number of applicable federal laws, including the following:

• Privacy regulations covered in the Gramm-Leach-Bliley Act and enforced by the Federal Trade Commission
• The Patriot Act
• The Truth-in-Lending Act
• Internal Revenue Service regulations
• The Bank Secrecy Act
• The federal Trading With the Enemy Act
• Other Executive Orders as issued by the President of the United States

At Barry’s Pawn & Jewelry, we are a family-owned business with three generations of experience in the pawnbroking field. Our Boca Raton pawn shop has been in business since 1987 and delivers honest appraisals and friendly service to our customers. Whether you are searching for bargains or borrowing against the value of one of your possessions, we are a Boca Raton honest pawnbroker with a proven reputation for fair dealing. Give us a call today at 561-349-7829 or stop by our North Federal Highway location to touch base with our team. We look forward to the chance to serve you.