Pawnbroker and Second-Hand Dealer Licence

You must familiarise yourself with the Pawnbroker and Second-hand Dealers Act 1994 and Pawnbrokers and Second-hand Dealers Regulations 1996 to ensure compliance.

There are three types of licences available:

1. Pawnbroker
2. Second-hand dealer
3. Combined.

Types of licences

Pawnbroker

The Pawnbroker Licence allows the holder to lend money on the security of pawned goods. A licence cannot be utilised for the purposes of second-hand dealing.

A Pawnbroker licence is not a stand-alone licence, it can only be held in conjunction with a Second-hand Dealer licence.

The licence cannot be transferred to another person and is only valid for the business it was originally applied for on behalf of. If a business wishes to change licence holders, a new application must be submitted.

Second-Hand Dealer

The Second-Hand Dealers Licence allows the holder to buy, sell or exchange second-hand goods, whether the goods are bought, sold or exchanged on the person’s own behalf or on behalf of another person.

A Second-Hand Dealer Licence cannot be utilised for the purposes of pawnbroking.

The licence cannot be transferred to another person and is only valid for the business it was originally applied for on behalf of. If a business wishes to change licence holders, a new application must be submitted.

Combined

Where a person is licensed for both pawnbroking and second-hand dealing, the licence holder is able to lend money on the security of pawned goods and buy, sell or exchange second-hand goods, whether the goods are bought, sold or exchanged on the person’s own behalf or on behalf of another person.

The licence cannot be transferred to another person and is only valid for the business it was originally applied for on behalf of. If a business wishes to change licence holders, a new application must be submitted.