Regulatory Alerts2007-01-31
Alabama Pawn Shop Act
The Alabama Legislature enacted Title 5, Chapter 19A to regulate pawnbrokers by mandating licensing through the State Banking Department and establishing strict operational standards. The statute requires detailed record-keeping, limits monthly charges to 25 percent of the principal, and imposes a mandatory holding period on pledged goods before resale to facilitate law enforcement verification. It further defines eligibility criteria, outlines procedures for license suspension or revocation, and prohibits specific fraudulent or unfair practices by pawnbrokers and their employees.
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