PAWNBROKERS
AND
PRECIOUS
METALS DEALERS
Pawnbrokers
The Division of Financial Institutions
regulates pawnbrokers in Ohio pursuant to Chapter 4727 of the Ohio Revised
Code
LICENSING
A person wishing to become a pawnbroker must submit an application,
a fingerprint card, a license fee and a nonrefundable investigation
fee. The Division must investigate the financial condition, responsibility,
character and general fitness of the applicant, including requesting
a criminal background check. The applicant must have liquid assets of
at least one hundred thousand dollars in order to receive a license.
Licenses must be renewed annually by filing a renewal application, providing
proof that continuing education requirements have been met, and paying
an annual license fee. Each office operated by a pawnbroker must be
individually licensed. If an office is to be relocated, the licensee
must obtain a new license from the Division prior to conducting business
at the new location.
COMPLIANCE
Licensees must comply with specific recordkeeping, advertising and business
practices as outlined by statute or rule. For example, all pawnbroker
offices must be licensed, the pawnbroker license must be conspicuously
displayed, interest rates and charges cannot exceed specified amounts,
descriptions of all pawned or purchased items must be provided to local
law enforcement authorities on a daily basis, and certain records must
be maintained for two years.
The Division can investigate licensees, and anyone who appears to be
operating without a license, including issuing subpoenas, to ensure
compliance with the law. The Division may also revoke or suspend a license,
or fine a licensee, subject to the Administrative Procedures Act. The
State is the sole regulator of pawnbrokers.
Precious Metals Dealers
The Division of Financial Institutions regulates precious metals dealers
pursuant to Chapter 4728 of the Ohio Revised Code.
LICENSING
A person wishing to become a precious metals dealer must submit an application,
a fingerprint card, a license fee, and a nonrefundable investigation
fee. The division must investigate the financial condition, responsibility,
character and general fitness of the applicant, including requesting
a criminal background check. The applicant must either have a net worth
of at least ten thousand dollars or obtain a surety bond in the amount
of ten thousand dollars.
Licenses must be renewed annually by filing a renewal application and
annual licensing fee. Each precious metals dealer location must be individually
licensed. If an office is to be relocated, the licensee must obtain
a new license from the Division prior to conducting business at the
new location.
COMPLIANCE
Licensees must comply with specific recordkeeping, advertising, and
business practices as outlined by statute or rule. For example, all
precious metals dealer offices must be licensed, the precious metals
dealer license must be conspicuously displayed, copies of purchase tickets
must be provided to local law enforcement authorities on a daily basis,
and certain records must be maintained for two years.
The Division can investigate licensees, and anyone who appears to be
operating without a license, including issuing subpoenas, to ensure
compliance with the law. The Division may also revoke or suspend a license
subject to the Administrative Procedures Act.
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