South Carolina Code of Regulations
Chapter 28 - DEPARTMENT OF CONSUMER AFFAIRS
Section 28-200 - Pawnbroker Certificate of Authority
Universal Citation: SC Code Regs 28-200
Current through Register Vol. 48, No. 9, September 27, 2024
A. DEFINITIONS
Definitions shall be those contained in the S.C. Pawnbroker Act, S.C. Code Ann. Section 40-39-10 et seq. (1976 as amended).
B. CERTIFICATES OF AUTHORITY
(1) All organizations wish to provide
pawnbroker services in this State must first obtain a Certificate of Authority
from the Administrator of the Department of Consumer Affairs. Initial
applications for the Certificate must be made on the form prescribed by the
Administrator.
(2) Certificates of
Authority expire each June 30 but may be renewed upon payment of a renewal fee
of $275.00 per location and submission of requisite financial responsibility
declaration on or before June 30. The renewal period will be between May 1 and
June 30 of each year. Renewal applications for the Certificate must be made on
the form prescribed by the Administrator.
(3) Issuance of a Certificate of Authority
does not indicate approval or acceptance of the terms of any contract,
agreement or other document submitted in support of the application. No
organization providing pawnbroker services will in any way represent that its
services, payment schedules or terms are approved by the State or any state
agency. Notwithstanding this, all pawnbrokers who are properly licensed and in
good standing may indicate this fact to others. Each applicant must file such
proof as is acceptable to the Administrator of his net worth which must be a
minimum of $35,000.00 until such time as liability insurance covering the pawn
transaction inventory of the pawn location is secured by the pawnbroker. When
the liability insurance is available, the amount of the liability insurance
required must be at least enough to cover the pawn transaction inventory of
each location operated by the pawnbroker. The liability insurance is to be
comprehensive in nature.
(4) The
Certificate of Authority must be made on a form prescribed by the administrator
and must be posted in a conspicuous place at the business location.
Certificates of Authority are not transferable or assignable.
(5) On application of any person and payment
of the cost thereof, the Administrator will furnish a certified copy of any
pawnbroker Certificate of Authority.
(6) Relocation of Pawnshops
(a) Notice to Department--The pawnbroker must
forward written notice of the intended relocation to the Department not less
than 30 days prior to the anticipated relocation date. The notice must include
at a minimum the present name and address of the licensed pawnshop, the
anticipated date of relocation and a sample copy of the notice to be mailed to
pledgors on open pawn loans. A $25.00 change of location fee must accompany
these materials.
(b) Notice to
Customers--Written notices must be mailed to all pledgors on open pawn loans at
least 15 days prior to the date of relocation. Notices at a minimum must
identify the pawnshop, identify both the old and new locations and the
telephone number of the new location and date the location is effective. The
Administrator or his designee may approve notification by signs in lieu of
notification by mail if in his opinion no pledgors will be adversely
affected.
C. RECORD KEEPING
(1)
(a) Prescribed Form and Content--Each
pawnbroker must file with the Department a sample of the pawn ticket to be
used. In a manual records system, the pawn ticket must be at least a two part
form on which entries to the top part are legible and simultaneously reproduced
on the remaining parts. The ticket must contain all the information required in
the South Carolina Pawnbroker Act, satisfy the requirements of the
Truth-in-Lending Act and Regulation Z, and contain any additional information
which the Department may prescribe by regulation.
(b) Distribution of Copies--The original must
be maintained by the pawnbroker and made available to law enforcement and/or
the Department of Consumer Affairs. A legible copy must also be given to the
pledgor when a loan is made. A legible copy must be maintained in a file in
numerical sequence. Voided tickets must be retained and filed with the
numerical sequence file.
(c)
Numerical Index of Redemptions--A legible copy of each pawn ticket returned to
the pawnbroker for redemption must be filed in numerical sequence. In lieu of
the copy of the ticket, other written evidence of redemption may be kept in
numerical sequence. Separate lost ticket statement forms must be filed with the
pawn tickets according to the number of the related ticket. If the pawnbroker
or pledgor does not require a lost ticket statement, other written evidence may
be used as a substitute. This file may be maintained separately or may be
merged with the numerical index of loans.
(2) Records of Payment and Forfeiture--A
written record of any payment on a loan must be made immediately upon receipt.
Payments received must be posted on the day received to the back of the
pawnbroker's retained copy of the pawn ticket. The payment record must show at
least the following information:
(a) The date
(month, day, year) of payment
(b)
The actual amount received and itemized as applied to:
(i) principal (amount financed)
(ii) pawn finance charge
(iii) charge for lost ticket statement In
lieu of (1)(c) and (2) above, the pawnbroker may maintain a ledger book
containing the same information.
(3) Records Maintained on Electronic Data
Processing (EDP) Systems
(a) Filing of
Description of Systems and Programs--Records and account systems maintained in
whole or in part by electronic data processing may be used in lieu of the
books, files and records required by these regulations if they contain
equivalent information. Each system must receive prior written approval from
the Department. Pawnbrokers seeking such approval must file a complete and
detailed written description of the system proposed to be utilized, including
user instructions and an enumeration of all features that do not meet the
requirements of the regulations and a full explanation as to how the equivalent
information is maintained with the proposed system. User instructions must
provide a clear and concise section of procedures which must be followed to
operate the system as contemplated by the Department in approving the
system.
(b) Filing of
Amendments--All changes or updates to a pawnbroker's electronic data processing
system must be filed with the Department within 30 days after use by a
pawnbroker.
(c) Withdrawal of
Approval by the Department--If based on examinations and practical experience
with an EDP system and its records the Department finds that such system and
records do not function and provide information as anticipated at the time of
approval and are unsatisfactory, approval may be withdrawn by the Department. A
pawnbroker will have 60 days to make modifications in accordance with
directives of the Department concerning a satisfactory record system.
(4) Identification of Source of
Pledged Goods in Pawnshop--All pledged goods must be tagged or otherwise marked
to identify the source of the goods and/or the transaction through which the
goods were obtained. Once ownership of the goods has lawfully passed to the
pawnbroker, the goods no longer need to be so identified.
(5) Every pawnbroker must preserve and make
available in this State such books and records relating to each of its pawn
transactions for two (2) years from the date of the transaction, or one (1)
year from the date of the final entry made thereon, which is later.
(6) Any person properly identifying himself
as the original customer in the pawn transaction or as the assignee thereof;
and presenting a pawn transaction memorandum (pawn ticket) to the pawnbroker
will be presumed to be entitled to redeem the pledged goods described therein.
The pawnbroker and customer may agree that the pawn transaction memorandum
(pawn ticket) cannot be assigned by the customer. A statement to this effect
must be conspicuous on the pawn transaction memorandum (pawn ticket).
Assignment of pawn tickets is achieved, if at all, by including a statement, written, printed or stamped, in close proximity to the pledgor's signature on the pawn ticket. The statement must be signed by the original pledgor. A statement in substantially the following form complies with this requirement.
Please give article(s) pawned by me to bearer of this ticket. Signed ____.
(7) If the
pawn transaction memorandum (pawn ticket) is lost, destroyed or stolen, the
customer may so notify the pawnbroker in writing, and receipt of the notice
will invalidate such pawn transaction memorandum, if the pledged goods have not
previously been redeemed. Before delivering the pledged goods or issuing a new
pawn transaction memorandum (pawn ticket), the pawnbroker may require the
customer to make affidavit of the loss, destruction or theft of the
memorandum.
(8) Any pawnbroker must
make available records of any buy transaction for inspection by the court and
its officials, law enforcement officers, the Administrator of the Department of
Consumer Affairs, and their designees; provided, merchandise bought on invoice
from a manufacturer or wholesaler with an established place of business is
exempt from this reporting requirement. However, such invoice must be shown
upon request to the court and its officials, law enforcement officers, the
Administrator of the Department of Consumer Affairs, and their
designees.
D. AGREEMENTS AND PRACTICES
(1) A pawnbroker must not accept
a pledge or purchase property from a person under the age of eighteen (18)
years or other unemancipated minor.
(2) Items purchased by a pawnbroker, except
on invoice from a manufacturer or wholesaler with an established place of
business, must be held for seven (7) days before being disposed of, sold,
altered or moved from the location at which it was purchased in this
State.
(3) A pawnbroker must upon
request give a payor a written receipt for any payment on a loan.
(4) A pawnbroker must not use or permit any
other person to use pledged goods.
(5) A pawnbroker must segregate pledged goods
and purchased items that are being held during the seven day waiting period
from public areas of the pawn shop, placing them in a back room or warehouse if
one is available. If such an item is left in the public area because of size,
value or other characteristics making it difficult or inappropriate to store
outside the public area, the item will be clearly tagged as required by C. (4)
above and identified as pledged goods, not for sale.
(6) A pawnbroker must segregate personal
goods which are not for sale from public areas of the pawn shop, placing them
in a back room or warehouse if one is available. If such an item is left in the
public area because of size, value or other characteristics making it difficult
or inappropriate to store outside the public area the item will be clearly
tagged as required by C. (4) above and identified as personal goods, not for
sale. These goods do not include personal items used to carry on the business
of the pawnbroker.
Statutory Authority: 1976 Code Sections 40-39-10 et seq.
Disclaimer: These regulations may not be the most recent version. South Carolina may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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