2023 Illinois Compiled Statutes › Chapter 205 - FINANCIAL REGULATION › 205 ILCS 510/ - Pawnbroker Regulation Act.

(205 ILCS 510/0.01) (from Ch. 17, par. 4650)
Sec. 0.01. 
		Short title. 
		This Act may be cited as the
Pawnbroker Regulation Act.
(Source: P.A. 86-1324.)
(205 ILCS 510/0.05)
Sec. 0.05. Administration of Act.
(a) This Act shall be administered by the
Secretary of Financial and Professional Regulation, and, beginning on July 28, 2010 (the effective date of Public Act 96-1365), all references in this Act to the Commissioner of Banks and Real Estate are deemed, in appropriate contexts, to be references to the Secretary of Financial and Professional Regulation, who shall have all of the following
powers and duties in administering this Act:
(1) To promulgate reasonable rules for the purpose of     administering the provisions of this Act.
(2) To issue orders for the purpose of administering     the provisions of this Act and any rule promulgated in accordance with this Act.
(2.5) To order restitution to consumers suffering     damages resulting from violations of this Act, rules promulgated in accordance with this Act, or other laws or regulations related to the operation of a pawnshop.
(3) To appoint hearing officers and to hire employees     or to contract with appropriate persons to execute any of the powers granted to the Secretary under this Section for the purpose of administering this Act and any rule promulgated in accordance with this Act.
(4) To subpoena witnesses, to compel their     attendance, to administer an oath, to examine any person under oath, and to require the production of any relevant books, papers, accounts, and documents in the course of and pursuant to any investigation being conducted, or any action being taken, by the Secretary in respect of any matter relating to the duties imposed upon, or the powers vested in, the Secretary under the provisions of this Act or any rule promulgated in accordance with this Act.
(5) To conduct hearings.
(6) To impose civil penalties up to $10,000 against     any person for each day that person violates  any provision of this Act, any rule promulgated in accordance with this Act, any State or federal law affecting pawnbrokers, or any order of the Secretary based upon the seriousness of the violation.
(6.5) To initiate, through the Attorney General,     injunction proceedings whenever it appears to the Secretary that any person, whether licensed under this Act or not, is engaged or about to engage in an act or practice that constitutes or will constitute a violation of this Act or any rule prescribed under the authority of this Act.  The Secretary may, in his or her discretion, through the Attorney General, apply for an injunction, and upon a proper showing, any circuit court may enter a permanent or preliminary injunction or a temporary restraining order without bond to enforce this Act in addition to the penalties and other remedies provided for in this Act.
(7) To issue a cease and desist order and, for     violations of this Act, any order issued by the Secretary pursuant to this Act, any rule promulgated in accordance with this Act, or any other applicable law in connection with the operation of a pawnshop, to suspend a license issued under this Act for up to 30 days.
(8) To determine compliance with applicable law and     rules related to the operation of pawnshops and to verify the accuracy of reports filed with the Secretary, the Secretary, not more than one time every 2 years, may, but is not required to, conduct a routine examination of a pawnshop, and in addition, the Secretary may examine the affairs of any pawnshop at any time if the Secretary has reasonable cause to believe that unlawful or fraudulent activity is occurring, or has occurred, therein.
(9) In response to a complaint, to address any     inquiries to any pawnshop in relation to its affairs, and it shall be the duty of the pawnshop to promptly reply in writing to such inquiries.  The Secretary may also require reports or information from any pawnshop at any time the Secretary may deem desirable.
(10) To revoke a license issued under this Act if the     Secretary determines that (a) a licensee has been convicted of a felony in connection with the operations of a pawnshop; (b) a licensee knowingly, recklessly, or continuously violated this Act or State or federal law or regulation, a rule promulgated in accordance with this Act, or any order of the Secretary; (c) a fact or condition exists that, if it had existed or had been known at the time of the original application, would have justified license refusal; (d) the licensee knowingly submits materially false or misleading documents with the intent to deceive the Secretary or any other party;  or (e) the licensee is unable or ceases to continue to operate the pawnshop.
(10.2) To remove or prohibit the employment of any     officer, director, employee, or agent of the pawnshop who engages in or has engaged in unlawful activities that relate to the operation of a pawnshop.
(10.7) To prohibit the hiring of employees who have     been convicted of a financial crime or any crime involving breach of trust who do not meet exceptions as established by rule of the Secretary.
(11) Following license revocation, to take possession     and control of a pawnshop for the purpose of examination, reorganization, or liquidation through receivership and to appoint a receiver, which may be the Secretary, a pawnshop, or another suitable person.
(b) After consultation with local law enforcement officers, the Attorney
General, and the industry, the Secretary may by rule require that
pawnbrokers
operate video camera surveillance systems to record photographic
representations of customers and retain the tapes produced for up to 30 days.
(c) Pursuant to rule, the Secretary shall issue licenses on an annual or
multi-year basis for operating a
pawnshop. Any person currently operating or
who has operated a pawnshop in this State during the 2 years preceding the
effective date of this amendatory Act of 1997 shall be issued a license upon
payment of the fee required under this Act.  New applicants shall meet
standards for a license as established by the Secretary.
Except with the prior written consent of the Secretary, no individual,
either a new applicant or a person currently operating a pawnshop, may be
issued a license to operate a pawnshop if the individual has been convicted
of a felony or of any criminal offense relating to dishonesty or breach of
trust in connection with the operations of a pawnshop.
The Secretary shall
establish license fees.  The fees shall not exceed the amount reasonably
required for administration of this Act.  It shall be unlawful to operate a
pawnshop without a license issued by the Secretary.
(d) In addition to license fees, the Secretary may, by rule, establish
fees in connection with a review, approval, or provision of a service, and levy
a reasonable charge to recover the cost of the review, approval, or service
(such as a change in control, change in location, or renewal of a license).
The Secretary may also levy a reasonable charge to recover the cost of an
examination if the Secretary determines that unlawful or fraudulent activity
has occurred.  The Secretary may require payment of the fees and charges
provided in this Act by certified check, money order, an electronic transfer of
funds, or an automatic debit of an account.
(e) The Pawnbroker Regulation Fund is established as a special
fund in the State treasury.  Moneys collected under this Act shall be deposited
into the Fund and used for the administration of this Act.
In the event that General Revenue Funds are appropriated to the Department of Financial and Professional Regulation for the initial implementation of this
Act, the Governor may direct the repayment from the Pawnbroker Regulation
Fund to the General Revenue Fund of such advance in an amount not to exceed
$30,000.  The Governor may direct this interfund transfer at such time as he
deems appropriate by giving appropriate written notice. Moneys in the Pawnbroker Regulation Fund may be transferred to the Professions Indirect Cost Fund, as authorized under Section 2105-300 of the Department of Professional Regulation Law of the Civil Administrative Code of Illinois.
(f) The Secretary may, by rule, require all pawnshops to provide for
the expenses that would arise from the administration of the receivership of a
pawnshop under this Act through the assessment of fees, the requirement to
pledge surety bonds, or such other methods as determined by the Secretary.
(g) All final administrative decisions of the Secretary under
this Act shall be subject to judicial review pursuant to the provisions of the
Administrative Review Law.  For matters involving administrative review, venue
shall be in
either Sangamon County or Cook County.
(Source: P.A. 97-333, eff. 8-12-11; 98-357, eff. 8-16-13.)
(205 ILCS 510/1) (from Ch. 17, par. 4651)
Sec. 1. 
(a) Every individual or business entity which lends money on the
deposit or pledge of physically delivered personal property, other than
property the ownership of which is subject to a legal dispute, securities,
printed evidence of indebtedness or printed evidence of ownership of the
personal property, or who deals in the purchase of such property on the
condition of selling the property back again at a stipulated price, shall be
held and is hereby
declared and defined to be a pawnbroker.  The business of a pawnbroker does
not include the lending of money on deposit or pledge of title to property.
(b) The Secretary may require employees of pawnshops who have the authority  to act in a managerial capacity to obtain a license from the Department. For the purposes of this Section, "managerial capacity" shall mean the ability to direct the operations or activities of the pawnshop.  If the Secretary determines a pawnshop employee's duties and responsibilities or other factors amount to acting in a managerial capacity, the Secretary may require licensing. The license shall be valid for 2 years.  The Secretary may by rule specify the form of the application for licensure, fees to be imposed and conditions for licensure.  The licensed employees shall report their places of employment to the Secretary.
(Source: P.A. 96-1365, eff. 7-28-10.)
(205 ILCS 510/1.5)
Sec. 1.5. 
		Misleading practices and names prohibited. 
		
It shall not be lawful for an individual or business entity to conduct
business in this State using the word "pawn", "pawnshop", or "pawnbroker" in
connection with the business or to transact business in this State in a manner
which has a substantial likelihood of misleading the public by implying that
the business is a pawnshop, without first obtaining a license from the
Commissioner.
(Source: P.A. 90-602, eff. 7-1-98.)
(205 ILCS 510/2) (from Ch. 17, par. 4652)
Sec. 2. 
		
		It shall be unlawful for any pawnbroker to charge or collect a
greater benefit or percentage upon money advanced, and for the use and
forbearance thereof, than the rate of 3%
per month. Nothing in this Section
shall be construed so as to conflict with the law pertaining to usury and
the person receiving money so advanced may hold such moneys to pay any fees
in addition to interest as herein provided.
Each pawnbroker, when making a loan under this Section, must disclose
in printed form on the pawn contract
the
following information to the persons receiving the loan:
(1) the amount of money advanced, which must be     designated as the amount financed;
(2) the maturity date of the pawn, which must be at     least 30 days after the date of the pawn;
(3) the total pawn interest and service charge     payable on the maturity date, which must be designated as the finance charge;
(4) the total of payments that must be paid to redeem     the pledged goods on the maturity date, which must be designated as the total of payments; and
(5) the annual percentage rate, computed according to     the regulations adopted by the Board of Governors of the Federal Reserve System under the Federal Truth in Lending Act.
Each pawnbroker may contract for and receive
a monthly finance charge including
interest and fees
not to exceed one-fifth of the loan amount,
as set forth herein, for appraising,
investigating
title, storing and insuring the collateral, closing the loan,
making daily
reports to local law enforcement officers including enhanced computerized
reporting, complying with regulatory requirements, and for other expenses
and
losses of every nature whatsoever and for all other services. Such fees,
when made and collected, shall not be deemed interest for any purpose of law.
(Source: P.A. 90-477, eff. 7-1-98.)
(205 ILCS 510/3) (from Ch. 17, par. 4653)
Sec. 3. 
		
		Every pawnbroker shall at all times have and keep Section 2 of this
act printed in the English language and framed and posted in a prominent
and conspicuous position in his place of business, so that the same shall
be plainly legible and visible to all persons depositing or pledging
property with such pawnbroker.
(Source: Laws 1909, p. 300.)
(205 ILCS 510/4) (from Ch. 17, par. 4654)
Sec. 4. 
Every pawnbroker shall, at the time of making any advancement
or loan, deliver to the person pawning or pledging any property, a
memorandum, contract, or note signed by him or her containing an accurate
account and description, in the English language, of all the goods,
articles or other things pawned or pledged, the amount of money,
 the time of pledging the same, the
rate of interest to be paid on the loan, the name and residence of
the person making the pawn or pledge, and the amount of any fees
as specified in Section 2 of this Act.
(Source: P.A. 98-357, eff. 8-16-13.)
(205 ILCS 510/5) (from Ch. 17, par. 4655)
Sec. 5. Record requirements.
(a) Except in municipalities located in counties having 3,000,000 or more
inhabitants, every pawn and loan broker shall keep a standard record book
that has been approved by the sheriff of the county in which the pawnbroker
does business.  In municipalities in counties with
3,000,000 or more inhabitants, the record book shall be approved by the police
department of the municipality in which the pawn or loan broker does business.
At the time of each and every loan or taking of a pledge,
an accurate account and description, in the English language, of all the
goods, articles and other things pawned or pledged, the amount of money,
value or thing loaned thereon, the time of pledging the same, the rate of
interest to be paid on such loan, and the name and residence of the person
making such pawn or pledge shall be printed, typed, or written in ink in
the record book.  Such entry shall include the serial number or
identification number of items received which bear such
number.  Except for items purchased from dealers possessing a federal employee
identification number who have provided a receipt to the pawnbroker, every
pawnbroker shall also record in his book, an accurate account and description,
in the English language, of all goods, articles and other things purchased or
received for the purpose of resale or loan collateral by the pawnbroker from
any source, including other pawnshop locations owned by the same pawnbroker, not in the course of a pledge or loan, the time of such purchase
or receipt and the name and address of the person or business which sold or
delivered such goods, articles, or other things to the pawnbroker.  No entry
in such book shall be erased, mutilated or changed.
(b) Every pawnbroker shall require identification to be
shown him by each person pledging or pawning any goods, articles or other
things to the pawnbroker.  If the identification shown is a driver's license
or a State identification card issued by the Secretary of State and contains a
photograph of the person being identified,
only one form of identification must be shown.  If the identification shown
is not a driver's license or a State identification card issued by the
Secretary
of State and does not contain a photograph, 2 forms of identification must be
shown, and one of the 2 forms of
identification must
include his or her residence address.  These forms of identification shall
include, but not be limited to, any of the following:  driver's license,
social security card, utility bill, employee or student identification card,
credit card, or a civic, union or professional association membership card.
In addition, in a municipality with a population of 1,000,000 or more
inhabitants, if the customer does not have an identification issued by a
governmental entity containing a photograph of the person being identified, the
pawnbroker shall photograph the customer in color and record the customer's
name, residence address, date of birth, social security number, gender, height,
and weight on the reverse side of the photograph.  If the customer has no
social security number,
the pawnbroker shall record this fact.
A county or municipality, including a home rule unit, may regulate a
pawnbroker's identification requirements for persons pledging or pawning goods,
articles, or other things to the pawnbroker in a manner that is not less
restrictive than the regulation by the State of a pawnbroker's identification
requirements for persons pledging or pawning goods, articles, or other things.
A home rule unit
may not regulate a pawnbroker's identification requirements for persons
pledging
or pawning goods, articles, or other things to the pawnbroker in a manner less
restrictive than the regulation by the State of a pawnbroker's identification
requirements for persons pledging or pawning goods, articles, or other things.
This Section is a limitation under subsection (i) of Section 6 of Article VII
of the Illinois Constitution on the concurrent exercise by home rule units of
the powers and functions exercised by the State.
(c) A pawnbroker may maintain the records required by subsection (a) in
computer form if the computer form has been approved by the Commissioner, the
sheriff of the county in which the shop is located, and the police department
of the municipality in which the shop is located.
(d) Records, including reports to the Secretary, maintained by
pawnbrokers shall be confidential, and no disclosure of pawnbroker records
shall be made except disclosures authorized by this Act or ordered by a court
of competent jurisdiction.  No record transferred to a governmental official
shall be improperly disclosed, provided that use of those records as evidence
of a felony or misdemeanor shall be a proper purpose.
(e) Pawnbrokers and their associations may lawfully give appropriate
governmental agencies computer equipment for the purpose of transferring
information pursuant to this Act.
(Source: P.A. 99-188, eff. 1-1-16.)
(205 ILCS 510/5.5)
Sec. 5.5. Replacement of articles or property; insurance. In the event that any articles or property pledged are
lost or rendered inoperable, the pawnbroker shall replace the
articles or property with identical articles or property,
except that if the pawnbroker cannot reasonably obtain
identical articles or property, the pawnbroker shall replace
the articles or property with like articles or property.
No pawnbroker shall conduct business in this State, unless the
pawnbroker maintains insurance coverage covering all hazards equal to at least 2
times the aggregate value of the outstanding loans for
items held in pawn. Such insurance shall be obtained from an insurance company authorized to do business in Illinois.
The pawnbroker shall file a copy of proof of insurance
coverage with the Secretary. A pawnbroker or an insurance company shall not cancel the
insurance coverage except upon notice to the
Secretary by certified mail, return receipt requested. The cancellation is not effective prior to 30 days after the
Secretary receives the notice.
(Source: P.A. 96-1365, eff. 7-28-10.)
(205 ILCS 510/6) (from Ch. 17, par. 4656)
Sec. 6. Inspection of records.
(a) The book or computer
records, as well as every article or other thing of value so
pawned or pledged, shall at all times be open to the inspection of the Secretary, the sheriff of the county, his deputies, or any members
of the
police force of
any city in the county in which such pawnbroker does business.
In addition, the Secretary shall be authorized to inspect the books or
records of any business he or she has reasonable cause to believe is conducting
pawn transactions and should be licensed under this Act.
(b) The book or computer records, pawn tickets, or any other records
required by the Secretary under this Act or any rule promulgated in
accordance with this Act shall be maintained for a period of 3 years after the
date on which the record or ticket was prepared.  These records and tickets
shall be open
to inspection of the Secretary at all times during the 3-year period.
(Source: P.A. 96-1038, eff. 7-14-10.)
(205 ILCS 510/7) (from Ch. 17, par. 4657)
Sec. 7. Daily report.
(a) Except as provided in subsection (b), it
shall be the duty of every pawnbroker to make
out and deliver to
the sheriff of the county in which such pawnbroker does business, on each
day before the hours of 12 o'clock noon, a legible and exact copy from
the standard record  book, as required in Section 5 of this Act, that lists
all personal property and any other valuable thing received
on deposit or
purchased during the preceding day, including the exact
time when
received or purchased, and a description of the person or person by whom
left in pledge, or from whom the same were purchased; provided, that in
cities or towns having 25,000 or more inhabitants,
a copy of
the report shall at the same time also be delivered to the
superintendent of police or the chief police officer of such city or town.
Such report may be made by computer printout or input memory device if the
format has been approved by the local law enforcement agency.
(b) In counties with more than 3,000,000 inhabitants, a pawnbroker must
provide the daily report to the sheriff only if the pawnshop is located in an
unincorporated area of the county.
Pawnbrokers located in cities or towns in such counties must deliver such
reports to the superintendent of police or the chief police officer of such
city or town.
(Source: P.A. 98-756, eff. 7-16-14.)
(205 ILCS 510/7.5)
Sec. 7.5. Report to the Secretary. 
The Secretary, as often as the Secretary shall deem necessary or
proper, may require a pawnshop to submit a full and detailed report of its
operations including, but not limited to, the number of pawns made, the amount
financed on pawn transactions, and the number and amount of pawns surrendered
to law enforcement.
The Secretary shall
prescribe the form of the report and establish the date by which the report
must be filed.
(Source: P.A. 96-1038, eff. 7-14-10.)
(205 ILCS 510/8) (from Ch. 17, par. 4658)
Sec. 8. 
		
		No pawnbroker shall take or receive any pawn or pledge for any
advancement or loan, any property of any kind from any minor who is under
18 years of age, or the ownership of which is in, or which is claimed by,
any such minor, or which may be in the possession or under the control of any such minor.
(Source: P.A. 84-478.)
(205 ILCS 510/9) (from Ch. 17, par. 4659)
Sec. 9. 
		
		No pawnbroker shall purchase or take any article in pawn or pledge from any
person appearing to be intoxicated, nor from
any person known to have been convicted of theft.
A law enforcement officer may provide such criminal conviction information
to a pawnbroker. When any
person is found to be
the owner of stolen property which has been pawned, such property shall be
returned to the owner thereof without the payment of the money advanced by
the pawnbroker thereon or any costs or charges of any kind which the
pawnbroker may have placed upon the same.
(Source: P.A. 84-1308.)
(205 ILCS 510/9.5)
Sec. 9.5. Altered property; serial number and manufacturer's identification number.
(a) No pawnbroker shall receive or purchase any article if the manufacturer's make, model, or serial number, personal identification number, or identifying marks engraved or etched upon an item of personal property has been removed, altered, or obliterated.
(b) The prohibition in subsection (a) of this Section does not apply if the article's manufacturer's make, model, or serial number, personal identification number, or identifying marks have been worn in the ordinary course of use.  However, no article described in this subsection (b) shall be sold or transferred to another pawnshop location of such pawnbroker for a period of 15 days after the delivery of the copy and statement required by Section 7 of this Act required to be delivered to the officer or officers
named therein.
(Source: P.A. 99-188, eff. 1-1-16.)
(205 ILCS 510/10) (from Ch. 17, par. 4660)
Sec. 10. Sale of property. No personal property pledged or received on deposit 
by any pawnbroker shall be permitted to be redeemed from such pawnbroker for a period of
 48 hours after the delivery of the copy and statement
required by
Section 7 of this Act required to be delivered to the officer or officers
named therein. No personal property purchased by any pawnbroker shall be sold or removed from the place of business or transferred to another pawnshop location of such pawnbroker for a period of 10 days after the delivery of the copy and statement required by Section 7 of this Act required to be delivered to the officer or officers named therein.  If the pawner or pledger fails to repay the loan during the
period specified on the pawn ticket, the pawnbroker shall automatically extend
a grace period of 30 days from the default date on the loan during which
the pawnbroker shall not dispose of or sell the personal property pledged.  The
parties may agree to extend or renew a loan upon terms agreed upon by the
parties, provided the terms comply with the requirements of this Act. A county or municipality, including a home rule unit, may regulate these holding periods in a manner that is more restrictive than the regulation provided in this Section 10. A home rule unit may not regulate these holding periods in a manner less restrictive than the regulation by the State. This Section is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of the powers and functions exercised by the State.
(Source: P.A. 99-188, eff. 1-1-16.)
(205 ILCS 510/11) (from Ch. 17, par. 4661)
Sec. 11. 
		Violations. 
		Every person who knowingly violates the provisions of this
Act shall, for the first offense, be guilty of a Class C misdemeanor, and for
each
subsequent offense shall be guilty of a Class A misdemeanor, except that a
person who knowingly violates this Act by operating a pawnshop without a
license shall be guilty of a Class B misdemeanor for the first offense and
shall be guilty of a Class A misdemeanor for any subsequent offense. This Act shall not be
construed as to, in any wise, impair the power of cities or villages in
this State to license, tax, regulate
except as to fee amounts,
suppress, and prohibit pawnbrokers as
now provided by law.
(Source: P.A. 92-215, eff. 8-2-01.)
(205 ILCS 510/12)
Sec. 12. Hold order.
(a) For the purposes of this Section, "hold order" means a written legal instrument issued to a pawnbroker by a law enforcement officer commissioned by the law enforcement agency of the municipality or county that licenses and regulates the pawnbroker, ordering the pawnbroker to retain physical possession of pledged goods in the possession of the pawnbroker or property purchased by and in the possession of the pawnbroker and not to return, sell, or otherwise dispose of such property as such property is believed to be misappropriated goods.
(b) Upon written notice from a law enforcement officer indicating that property in the possession of a pawnbroker and subject to a hold order is needed for the purpose of furthering a criminal investigation and prosecution, the pawnbroker shall release the property subject to the hold order to the custody of the law enforcement officer for such purpose and the officer shall provide a written acknowledgment that the property has been released to the officer. The release of the property to the custody of the law enforcement officer shall not be considered a waiver or release of the pawnbroker's property rights or interest in the property. Upon completion of the criminal investigation, the property shall be returned to the pawnbroker who consented to its release; except that, if the law enforcement officer has not completed the criminal investigation within 120 days after its release, the officer shall immediately return the property to the pawnbroker or obtain and furnish to the pawnbroker a warrant for the continued custody of the property.
The pawnbroker shall not release or dispose of the property except pursuant to a court order or the expiration of the holding period of the hold order, including all extensions.
In cases where criminal charges have been filed and the property may be needed as evidence, the prosecuting attorney shall notify the pawnbroker in writing. The notice shall contain the case number, the style of the case, and a description of the property. The pawnbroker shall hold such property until receiving notice of the disposition of the case from the prosecuting attorney. The prosecuting attorney shall notify the pawnbroker and claimant in writing within 15 days after the disposition of the case.
(Source: P.A. 96-1365, eff. 7-28-10.)
(205 ILCS 510/15)
Sec. 15. (Repealed).
(Source: P.A. 96-1038, eff. 7-14-10. Repealed by P.A. 98-1096, eff. 1-1-15.)
(205 ILCS 510/20)
Sec. 20. (Repealed).
(Source: P.A. 98-934, eff. 8-15-14. Repealed internally, eff. 6-30-15.)