Illinois Pawnbroker Regulation Act

Illinois Pawn Shop laws are found in The Illinois Pawnbroker Regulation Act, § 205 ILCS 510/1 et. seq. The sections of the law cover the following:   

Smith-Hurd Illinois Compiled Statutes Annotated
Chapter 205. Financial Regulation
Act 510. Pawnbroker Regulation Act (Refs & Annos)

510/1. Pawnbroker defined


§ 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.

510/2. Rate of percentage allowed; pawn contract disclosures; finance charge

§ 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.1
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.
510/3. Notice in English language

§ 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.

510/10. Sale of property

§ 10. Sale of property. No personal property received on deposit or pledge or purchased by any pawnbroker shall be sold or permitted to be redeemed or removed from the place of business of such pawnbroker for the space 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. 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.

510/20. Precious Metal Purchasers Task Force
 
§ 20. Precious Metal Purchasers Task Force.
(a) The General Assembly finds:
(1) There has been, and continues to be, a significant expansion in the volume of precious metals and jewelry sold through pawnbrokers, auction services, for-profit consignment sellers, and other resellers.
(2) There has been, and continues to be, a similar increase in the volume of stolen precious metals and jewelry.
(3) Access by law enforcement to sales-related information generated by pawnbrokers, auction services, for-profit consignment sellers, and other resellers has always been an important tool in combating burglary, robbery, theft, and other crimes directed at personal property.
(4) Recent advances in electronic data collection and compilation have greatly simplified both the reporting of sales-related information by pawnbrokers, auction services, for-profit consignment sellers, and other resellers.
(5) Law enforcement agencies, pawnbrokers, auction services, for-profit consignment sellers, resellers, and information technology-related businesses in several states have created differing systems to provide law enforcement with timely access to sales-related information.
(b) There is hereby created the Precious Metal Purchasers Task Force, consisting of members appointed as follows:
(1) two members from the Senate, one appointed by the Senate President and one appointed by the Minority Leader;
(2) two members from the House of Representatives, one appointed by the Speaker of the House and one appointed by the Minority Leader;
(3) one member appointed by the Governor as chairperson of the task force;
(4) one member appointed by the Secretary of State;
(5) one member appointed by the Attorney General;
(6) one member appointed by the Secretary of Financial and Professional Regulation from the Department of Financial and Professional Regulation;
(7) one member appointed by the Director of State Police from the Department of State Police;
(8) one member from a statewide organization representing the Chiefs of Police appointed by the Governor;
(9) one member recommended by the Illinois Municipal League and appointed by the Governor;
(10) one member of an association representing the interests of pawnbrokers appointed by the Governor;
(11) one member representing the interests of for-profit consignment shops appointed by the Governor;
(12) one member representing the interests of the insurance industry with a strong vested interest in stopping theft and recovering stolen goods appointed by the Governor;
(13) two members representing the interests of the general public appointed by the Governor;
(14) one member representing the interests of the scrap recycling industry appointed by the Governor;
(15) one member of a statewide association exclusively representing retailers appointed by the Governor; and
(16) one member of an association representing numismatic shops appointed by the Governor.
All members appointed under this Section shall serve without compensation, and may be reimbursed for their reasonable and necessary expenses from funds appropriated from the Pawnbroker Regulation Fund.
(c) The task force shall study the various systems, technologies, and methods of operation for providing law enforcement with the timely access to information relating to the sales of precious metals and jewelry by pawnbrokers, auction sellers, for-profit consignment sellers, resellers, and other persons or entities as it may deem fit, including, but not limited to, providers of technology and services relating to the collection, compilation, storage, and access to such information.
(d) The Department of Financial and Professional Regulation shall provide any necessary administrative and other support to the task force.
(e) On or before December 31, 2013, the task force shall file and present a report to the General Assembly concerning its recommendations regarding the systems and technologies, together with their usage and potential funding mechanisms and sources, to be implemented to create a statewide system for the collection of information of the sales of precious metals and jewelry by pawnbrokers, auction services, for-profit consignment sellers, and other resellers, and for the compilation, storage, and timely access to that information by law enforcement and shall include proposed legislation to implement its recommendations, if needed.
(f) This Section is repealed on December 31, 2014.

205 ILCS 510/1- 510/20 [Proposed Legislations omitted]