Shop smart this holiday season: Safety tips when purchasing from pawn brokers
With the holiday shopping season now in full swing, consumers are on the hunt for unique items and good deals, which can make pawn shops a potential shopping destination. Before consumers visit their local pawn broker, the Ohio Department of Commerce Division of Financial Institutions (DFI) emphasizes the importance of only working with licensed pawn brokers and exercising caution when shopping.
Before visiting a pawn broker, DFI Superintendent Kevin Allard says the most important step consumers should take is to verify they have a current license with the state of Ohio. This can help to ensure you engage in safe and legal transactions, which can help protect personal property and prevent potential surprises.
“Before visiting a pawn broker, it’s important that you never assume anything, and that you always confirm they are licensed before doing business with them,” Allard said. “Unlicensed operators not only avoid legal responsibilities, but their activities are untracked, making transactions significantly riskier for consumers. We are committed to supporting licensees who follow the law to ensure a safe and positive shopping experience, and also working with law enforcement as needed to protect consumers from falling victim to illegal brokers.”
Pawn brokers generally offer two services: They can loan on personal property or purchase items outright. Loans involve interest and a storage fee, which must be renewed on a monthly basis. For purchases, the price is often negotiated between the seller and the store. In addition, pawn brokers must have a brick-and-mortar store to hold a state license.
Consumer Shopping Safety Tips and Recommendations:
• Before visiting a pawn broker, always verify their license via Ohio’s eLicense system.
• If you haven’t checked beforehand, consumers should look for the license number in advertisements or a conspicuously displayed certificate in the store itself before engaging in a transaction.
• Following a transaction, always obtain a copy of the pawn form the broker is required to complete for each transaction. Make sure item descriptions are detailed and accurate for future reference.
• Consumers who suspect violations or have concerns about the practices of a licensed pawn broker can file complaints directly with DFI for investigation at com.ohio.gov/Pawnshops.
• Consumers are advised to avoid engaging with unlicensed operators, such as “mobile pawn shops,” since they present significant risks to consumers. These entities bypass state regulations, often fail to report transactions to police, and may lack accountability, leaving consumers vulnerable to loss or fraud.
• In the event consumers identify potentially stolen property in a pawn shop, they should file a police report immediately. Law enforcement can place a mandatory 30-day hold on the item while investigating, giving victims time to pursue recovery through proper legal channels.
DFI regularly examines licensed businesses every 18 months to ensure compliance with state laws. The division collaborates with local law enforcement to review pawn broker operations, assess recordkeeping and address potential concerns. Additionally, DFI investigates complaints filed against licensed businesses and takes enforcement action when necessary.
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