You must get a pawn ticket that includes all of the charges that you have to pay. If you do not pay the charges on time, your items can be sold without telling you. If your item is sold, you can claim the money left from the proceeds of sale after any amount owed to the pawnbroker has been deducted.
Pawn ticket
When you pawn an item, you must sign a pawn agreement. A copy of the agreement will be given to you (the ‘pawn ticket’).
The pawn ticket includes important details about your loan, such as:
- the amount lent, interest, fees and charges
- how fees are charged and repayment options
- start and end dates of the loan period
- whether items can be separately redeemed
- where the goods will be kept during the period
- a fair and reasonable description of goods
- how goods will be sold if not redeemed.
If you lose your pawn ticket, you can ask for new one. The pawnbroker will verify your identity.
Interest, fees and charges
Pawnbrokers must have a sign with the interest and other fees they charge. You only have to pay the fees stated on your pawn ticket and as displayed in the pawn shop.
Once your loan period has ended, you will not be charged interest. However, you may be charged a safekeeping fee if it is part of your agreement.
Reclaiming your goods
You can reclaim your goods at any time before pawnbroker sells them, even if the loan has ended.
To claim your item, you will have to pay the amount of any outstanding loan or charges. You will need to verify your identity by producing the:
- pawn ticket and reproducing the signature, or
- evidence of your identity with a declaration that you are the owner of the good, or
- authorisation from you and evidence that you are unable to collect goods yourself, if you want an agent to collect them.
Period of loan and payments
You must be offered at least a 3-month loan, starting on the day you pawn the goods.
Pawnbrokers must give you the option to pay interest charges each month, rather than paying all of the interest at the end of the loan period.
You can make payments anytime during business hours, or someone can on your behalf.
Sale of unredeemed goods
Pawnbrokers can sell your goods without any intimation if you do not claim them back by the end of the loan period.
If the loan amount is more than $100, the pawnbroker must sell your items for the best price and as soon as possible.
The pawnbroker cannot buy the goods.
Surplus proceeds of sale
If the pawnbroker sells your item for a higher price than any outstanding amounts that you have not paid, you can claim the excess money (surplus) within 12 months of the sale.
When the surplus is more than a $100, the pawnbroker must send a notice to you within 21 days about your right to collect the surplus.
You may opt out of receiving such notice. However, you cannot be forced to opt out and can withdraw a request at any time.
Extensions and variations
Pawnbrokers can only vary the pawn agreement to extend the loan period. You must consent to this and sign an extension agreement.
The pawnbroker must give you a copy along with information on the original agreement, including the date of the new agreement, new redemption period and new fees, charges or interest.
Closure or sale of business
If the pawnbroker sells their business, you will be notified about who will be in charge within 14 days.
If a pawnbroker surrenders their licence, you will be notified about where to redeem your items.