Pawn Regulations in NC
Article 45 of the Pawnbrokers and Cash Converters Modernization Act covers Pawnbrokers, Metal and Scrap Dealers.
Part I pertains to pawnbrokers and 'cash converters' - the latter described as 'A person purchasing goods from the public for cash at a retail store who holding himself out to the public as engaging in that business.'
Businesses that are excluded from that definition are pawn brokers, buyers from manufacturers and wholesalers, precious-metals dealers (regulated separately under the Act) and dealers in sporting goods where items are purchased under $50.
To qualify for a license the applicant must be of good moral character, must have petitioned the city or county with his name, business name, shop address, and must have a certificate from the chief of police or sheriff or the State Bureau of Investigation and an affidavit that he/she has had no felony convictions in 10 years.These statements must appear on pawn tickets in caps:
"ANY PERSONAL PROPERTY PLEDGED TO A PAWNBROKER WITHIN THIS STATE IS SUBJECT TO SALE OR DISPOSAL WHEN THERE HAS BEEN NO PAYMENT MADE ON THE ACCOUNT FOR A PERIOD OF 60 DAYS PAST MATURITY DATE OF THE ORIGINAL CONTRACT. NO FURTHER NOTICE IS NECESSARY."
"THE PLEDGOR OF THIS ITEM ATTESTS THAT IT IS NOT STOLEN, HAS NO LIENS OR ENCUMBRANCES, AND IS THE PLEDGOR'S TO SELL OR PAWN."
"THE ITEM PAWNED IS REDEEMABLE ONLY BY THE BEARER OF THIS TICKET OR BY IDENTIFICATION OF THE PERSON MAKING THE PAWN."
The pawn ticket must also have provisions for signatures of the pawnbroker and the pawner.
Loan interest is limited to 2% per month and additional fees are allowed for title research, handling, appraisal, storage, security insurance, application, daily police reports and 'other expenses' including losses and all other services. The maximum for fees is 20% per month with maximums of first month: $100, second month: 75, third month: 75 fourth month and thereafter: 50
Charges are allowed for bad checks.
Software Advantages for N. Carolina Pawn Shops
Pawnbroker Pawn Shop Software saves pawn shops in N. Carolina a lot of money over time in several ways:
- The initial price is lower - because it has not been padded with precharges for personal support. The software offer includes a free introductory session to assure a smooth and easy start and that should not cost hundreds of dollars.
- There are no ongoing monthly payments - as there are with most other programs - particularly those that are 'web based'. (Check with the authorities in your area. Web-based software may not be permitted for security reasons.)
- There are no annual support fees. Instead, payment for support is only made when help is requested. A detailed illustrated user's guide is provided so shop owners and employees with computer skills won't need to seek tutors to basically read from the manual.
- Transactions for pawns, buy outright (resale), cashing checks, payday and title loans, layaways and rentals can be printed on 8.5x11 paper using an ink printer, saving considerably on preprinted forms (which become outdated and wasted with changes in law or in shop policies).
- There is an ongoing cost of keeping software current with changes in technology. The users of the software benefit from this service and there is a small annual fee of $175 for supporting this effort.
- Hardware that can be used with various editions of the software include label and POS printers, drawers, bar-code, fingerprint and license scanners and webcams. There are no add-ons for shipping or sales tax.
In comparison other programs will cost a fortune over time for a few of reasons:
- The initial first-cost is much higher
- Monthly or annual payments are mandatory. (If payments aren't made software ceases to function.)
- Some providers require a written contract locking the shop owner in for 3 years or more and setting the stage for price gouging.
- Generally once a store owner invests time in learning a software program, he/she is unlikely to want to repeat the process. Software vendors are keenly aware of the fact and exploit it with frequent increases in fees.
Payment for Pawnbroker Pawn Shop Software is made once for lifetime use. There is the ongoing expense of keeping the software up-to-date with technology and that expense is borne by the end users of the software who benefit from that service; therefore, there is an software maintenance fee of $175.