Oklahoma Pawn Rules & Regulations
In Oklahoma, the operation of pawn shops is primarily governed by the Oklahoma Pawnshop Act, found in Title 59 of the Oklahoma Statutes, Sections 1501 through 1515. The Oklahoma Department of Consumer Credit is the state agency responsible for licensing and regulating pawnbrokers.
Here are some of the key laws, rules and regulations governing pawn shops in Oklahoma:
Pawn Shop Licensing in Oklahoma:
- State License: Anyone operating a pawnbroker's business must obtain a license from the Oklahoma Department of Consumer Credit.
- Eligibility: Applicants must be of good moral character, have net assets of at least $25,000, and demonstrate that the pawnshop will be operated lawfully. A felony conviction directly related to the duties of a pawnbroker can result in ineligibility.
- Application Process: The application requires detailed personal and business information, including the location of the business.
- Surety Bond: A surety bond of $5,000 per licensed location is required to provide financial security for the enforcement of the law and protect the public from financial harm due to illegal or unethical practices.
- Fees: There are various fees associated with licensing, including investigation fees, license fees, and examination fees.
- Renewal: Licenses expire on December 31st each year and must be renewed annually, with renewal fees and potential late fees for delayed renewals.
- Municipal Regulations: While the state issues the primary license, municipal corporations may also require a separate regulatory permit and charge a fee not exceeding $50 per annum.
Pawn and Buy Outright Record Keeping and Reporting:
- Detailed Records: Pawnbrokers are required to maintain detailed records of all pawn and buy transactions. These records must include:
- A complete description of the property, including any identifying marks (brand, serial number, model number, etc.).
- The date and time of the transaction.
- The amount loaned (for pawn transactions).
- Interest rate and amount of interest.
- The pawn ticket number.
- Detailed identification information of the customer (name, address, race, sex, weight, height, date of birth, and identification number from a state or federal ID, or a fingerprint).
- The signature of the customer.
- Transaction Reports to Law Enforcement: Pawnbrokers must make available a copy or report of all buy and pawn transactions to the local law enforcement agency within two days. This can often be done electronically through a database accessible to law enforcement.
- Declaration of Ownership: A written declaration of ownership must be obtained from the seller or pledgor for all buy and pawn transactions (excluding refinances or purchases from established wholesalers/manufacturers). This declaration requires the customer to state how long they have owned the property.
- Record Retention: Records must be preserved for four years from the date of the transaction or two years from the date of the final entry, whichever is later.
Our Pawnbroker Pawn Shop Software automatically records all required transaction details, including full property descriptions and mandated customer identification data, and makes reports available to local law enforcement immediately. The software also assists in capturing declarations of ownership and ensures all records are preserved for the required four-year period.
Pawn and Buy Outright Holding Periods:
- Purchased Items: Items purchased by a pawnbroker (not pawned goods) must generally be held for ten days before being sold or disposed of. This holding period allows law enforcement time to check for stolen property. Local ordinances may have different holding periods (e.g., 48 hours in some cities).
- Pledged Goods: Pledged goods not redeemed by the maturity date fixed in the pawn agreement must be held for at least 30 days following that date, during which the customer can still redeem the item.
Our Pawnbroker Pawn Shop Software automates the tracking of holding periods according to Oklahoma regulations. It automatically calculates and alerts you to the mandatory ten-day hold for purchased items and ensures pledged goods are held for at least 30 days after their maturity date, providing clear visibility and reminders so you stay compliant without manual tracking or worrying about calculation errors.
Pawn Finance Charges and Redemption:
- Maximum Finance Charges: The Oklahoma Pawnshop Act sets limits on the finance charges that can be applied to pawn transactions. These limits are tiered based on the amount financed and are calculated monthly. For example, the maximum charge for amounts financed up to $250 is 20% per month, with decreasing percentages for higher amounts up to a maximum financed amount of $25,000. A minimum finance charge may also apply.
- Refinancing: Pawn transactions can be refinanced by agreement between the customer and the pawnbroker, treated as a new transaction with updated disclosures and finance charges.
- Redemption: Customers have a specified period (at least 30 days after the maturity date) to redeem their pledged goods by repaying the loan amount and accrued finance charges. If the goods are not redeemed within this period, the pawnbroker gains ownership.
Navigating Oklahoma's complex, tiered pawn interest rates with their extensive table entries is made simple by our Pawnbroker Pawn Shop Software, which automatically applies the correct percentage based on each loan amount.
Pawnbroker Prohibited Acts:
- Pawnbrokers are prohibited from engaging in transactions involving stolen property or property suspected to be stolen.
- They cannot purchase or receive property from individuals under the influence of alcohol or drugs.
- There are age restrictions for transactions, prohibiting loans on pistols or revolvers to persons under 21 and on other articles to persons under 18 without parental consent.
- Employing individuals convicted of certain crimes related to stolen property can lead to license revocation.
Pawn Rules Laws and Regulations Enforcement:
- The Administrator of the Department of Consumer Credit has the authority to examine and investigate pawn shops to ensure compliance with the law.
- Willful noncompliance with written hold orders from law enforcement can lead to license suspension or revocation.
- Violations of the Oklahoma Pawnshop Act can result in criminal penalties, including fines and imprisonment. Engaging in business without a license or charging excessive finance charges can void the pawn transaction, relieving the customer of the obligation to pay.
It is important to note that this is a general overview, and specific details and potential local ordinances may vary. For precise legal guidance, it is always recommended to consult the full text of the Oklahoma Pawnshop Act and any relevant municipal ordinances, or seek advice from a legal professional.
