The pawn industry is heavily regulated. In addition to numerous state and local laws, pawn shops are regulated by 13 federal laws. The following list names and explains each law:
1. Internal Revenue Service Form 8300 – cash transaction reporting by persons engaged in trades or business. Source: United States Code, Title 26.
2. Bank Secrecy Act – “suspicious activity reporting” – currently voluntary for the pawn industry. Source: USA Patriot Act.
3. “Specially Designated Nationals” List/Office of Foreign Assets Control/Treasury – US persons prohibited from doing business with persons and organizations on the list. Source: Treasury Department, Office of Foreign Assets Control regulations; various statutes and Executive Orders dating back to 1812.
4. USA Patriot Act – pawnbrokers included as businesses subject to provisions; pawn industry regulation forthcoming; pawnbrokers also conducting business in precious metals, precious gems or stones, or jewelry containing any or all must comply with Jewelry Industry regulation (effective July 11, 2005) except in selling property previously held as collateral for pawn loans.
5. Truth in Lending Act – disclosure of credit terms in consumer credit transactions.
6. Gramm-Leach-Bliley Financial Services Modernization Act of 1999 (GLBA) – creates privacy rights and requires privacy notices to consumer customers. Implemented and enforced by the Federal Trade Commission (FTC).
7. FTC Privacy Rule – explains and implements provisions of GLBA privacy rights.
8. FTC Safeguards Rule – explains and implements provisions of GLBA safeguards for consumers’ nonpublic personal information.
9. Fair Credit Reporting Act – restricts sharing of nonpublic personal information with unaffiliated third parties; requires care in disposal of consumer information.
10. FTC Consumer Information Disposal Rule – implements the 2003 Fair and Accurate Credit Transactions Act amendments to the Fair Credit Reporting Act on disposal of consumer information.
11. Equal Credit Opportunity Act – prohibits discrimination in consumer credit transactions on basis of gender, age, marital status, ethnicity, national origin, religious preference, or receipt of public assistance income.
12. Service Members Civil Relief Act of 2003 – limits interest rates and charges assessable on military personnel in certain situations identity theft cases. .
13. FTC Red Flag Rule – requires development of programs and procedures to identify possible identity theft cases. Becomes effective June 1, 2010.