2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 32 - Pawnbroking Business and Operations Regulatory Act (§§ 634 — 654) › § 650 - Prohibited practices

(a) A person operating a pawnbroking business, as defined by this chapter, shall not:
(1) Operate a pawnbroking business without a license.
(2) operate his/her business during business hours other than from 7:00 a.m. to 9:00 p.m., notwithstanding the provisions of §§ 301 et seq. of Title 29;
(3) Engage in any transaction with a minor, a legally incompetent person, or someone who, to the best of his/her knowledge, is depressed or under the influence of alcohol, narcotics, drugs, or stimulants.
(4) Commit fraud, distort information, or make false or misleading statements.
(5) Cease to provide reasonable care to protect pledged goods against damage or loss.
(6) Charge for insurance in connection with a transaction.
(7) Refuse to return pledged goods to a pledgor upon payment of the full amount due within the term provided. If a pledged good is sold or lost during the loan period, while in the possession of the licensee, he/she must compensate the pledgor for twice the value of the pledged good established in the agreement of the pledged good lost or sold without authorization. If the pledged good is accidentally lost or destroyed while in the possession of the licensee, he/she shall compensate the pledgor for the value of the pledged good established in the agreement, minus the amount loaned that has not been repaid;
(8) Sell a pledged good before the end of the agreed term.
(9) Sell a pledged good before thirty (30) days have elapsed since the expiration date of a loan, in the event that such pledged good is not redeemed within the agreed term.
(10) Receive a good on the security of pledge whose brand name or serial or identification number has been altered, covered, removed, erased, or destroyed.
(11) Receive a good on the security of pledge if the licensee knows or suspects that such good does not legally belong to the pledgor or has been obtained unlawfully.
(12) Conduct other commercial transactions in the same premises as the pawnbroking business, except for those allowed by §§ 2201 et seq. of this title, known as the “Purchase and Sale of Precious Metals and Stones Regulation Act”, and those expressly authorized by the Commissioner.
(13) Make any agreement that requires or allows the personal liability of a pledgor or the waiver of any provision of law or regulation.
(14) Conduct any transaction at a drive-through window where the pledgor remains in a motor vehicle as a driver or passenger while conducting the transaction.
(15) Fail to provide customers with a pawn ticket that breaks down the sales and use tax, in detail whenever applicable.
(16) Refuse to allow the Commissioner or authorized public officers to inspect any record, document, or information in his/her custody.
(17) Advertise in any type of media as a pawnbroking business, as defined by law and regulations, without having first obtained a license from the Commissioner.
(18) Advertise in any type of media without stating the business or trade name of the entity providing pawnbroking business services, as well as its street address and the license number issued by the Commissioner.
(19) Require or allow the pledgor to sign blank documents.
(20) Fail to keep records, files, or accounting books according to generally accepted accounting principles which clearly show transactions in a way that allows the Commissioner or other government agencies to perform any necessary investigations.
(21) Make promises to customers in order to try to engage them in business knowing that such promise shall not be kept, or make any false statement regarding a material fact in order to mislead the customer.
(22) Engage in unlawful or unfair competition practices.
(23) Engage in misrepresentation in order to induce or persuade a person to conduct a transaction.
(24) Illegally withhold any sum of money or document related to a transaction, or fail to notify a customer of his/her right to any sum of money or document that is part of a transaction.
(25) Embezzle or misappropriate funds under his/her custody.
(26) Forge documents that are part of a transaction.
(27) File, publish, or make false reports or entries in documents or records in order to defraud or deceive any person, the Commissioner, or the agents and officers authorized by this chapter.
(28) Make contact in person, by phone, in writing, or through any other means to offer pawnbroking business services without the corresponding license.
(29) Advertise, show, distribute, or broadcast deceptive and false information regarding the pawnbroking business, or allow the same to be advertised, distributed, or broadcast.
(30) In the case of both natural and juridical persons, to comply with a summons, order, or requirement by the Commissioner or his/her representatives, or with a court order so issued, by alleging that the data or information so requested could incriminate him/her or give rise to the imposition of a penalty.
(31) Sell property or goods given on pledge before the hold order established in § 652 of this title has expired.
Likewise, any person shall commit a violation whenever he/she takes part, abets, or cooperates in the commission of these acts, regardless of whether or not such person personally profited therefrom.
History —Feb. 24, 2011, No. 23, § 18, eff. 60 days after Feb. 24, 2011; Dec. 16, 2014, No. 209, § 7, eff. 60 days after Dec. 16, 2014.