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Pawnbroker Licensing Information

The following information regarding pawn transactions in Maine can be found by clicking on the appropriate link:

  1. STATUTES: Title 30-A, Section 3960 through 3964-A, found in the Municipal Law section of the Maine Statutes, were amended in the spring of 1993. The Legislature retained the requirement for pawnbrokers to obtain a license from their city or town. (If the pawnbroker does not have a city or town license, then he or she must obtain a Supervised Lender license from the State. This is an expensive and difficult process, so prospective pawnbrokers are urged to work with their municipality to obtain a license.) The new laws also apply the principles of Truth-in-Lending to pawn transactions. This means that customers of pawnshops must be given information telling them the cost of the pawn transaction in terms of interest charges and annual percentage rate.
  2. DISCLOSURE FORM: Enclosed is a sample disclosure form, which needs to be filled out whenever an item is pawned. A copy must be given to the consumer pawning an item.
  3. RATE CHARGE: Enclosed is a chart of maximum rates allowed by law. Please remember that these are maximum rates, and especially on small loans (those under $10.00), most pawnbrokers will charge far less than the maximum allowed.
  4. SAMPLE ORDINANCE: Many small towns do not have an existing pawnbroker ordinance. If your town does not have an ordinance on the books, you can offer this sample ordinance for consideration by your town officials, selectmen or council. It is based on Augusta's ordinance. Fees charged by towns range from $10.00 for small and medium sized towns to $50.00 for large cities like Lewiston.
  5. SAMPLE LICENSE APPLICATION: This is an application which may be used by towns in order to obtain information from individuals requesting pawnbroker licenses. It should be modified to suit the local purposes.
  6. STATE REGISTRATION FORM: All creditors, including pawnbrokers, must file a registration form with the Bureau of Consumer Credit Protection each year. Enclosed is a copy to be submitted before a pawnshop begins operation. After the first year, forms will automatically be sent in December for return by the end of January.

If you have any questions about filling out forms, or in other areas, give us a call or put them in writing and mail them to us and we will respond promptly.

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