Victorian Consolidated Legislation

Second-Hand Dealers and Pawnbrokers Act 1989 - SECT 23

Contracts for pawning goods

23. Contracts for pawning goods



(1) A pawnbroker must not receive second-hand goods in pawn from a person
under 16 years of age.

Penalty: 20 penalty units.

(1A) A pawnbroker must not receive a motor car from a person as goods in pawn.

Penalty: in the case of a natural person, 60 penalty units; in the case of a
body corporate, 300 penalty units.

(1B) In subsection (1A), motor car has the same meaning as it has in the
Motor Car Traders Act 1986.

(2) A pawnbroker must cause a notice-









   (a)  in or to the effect of a form approved by the Authority ; and





   (b)  showing the maximum amount charged weekly and monthly, or any other
        period normally used, by the pawnbroker on pawn transactions; and

   (c)  stating that in special circumstances a higher amount may be charged
        by the pawnbroker-

to be displayed in a prominent place in or outside each business premises of
the pawnbroker to which the public has access so that the notice is clearly
visible to the public from outside the premises. Penalty: 20 penalty units.

(3) A pawnbroker who advances money on the security of goods received in pawn
must give to the owner of the goods-

   (a)  a pawn ticket containing the prescribed particulars; and

   (b)  a notice in the prescribed form concerning the rights and
        responsibilities of the parties to the transaction; and

   (c)  written notice of the charge that will be imposed on the transaction.

Penalty: 20 penalty units.

(4) Subject to subsection (5), a pawnbroker must not charge on a pawn
transaction an amount more than an amount calculated in accordance with the
amount displayed on a notice under subsection (2)(b).

Penalty: 20 penalty units.



(5) A pawnbroker may charge an amount more than an amount calculated in
accordance with the amount displayed under subsection (2)(b) if-

   (a)  it is reasonable to do so because the pawnbroker is likely to incur
        additional storage costs in relation to the goods being pawned; or

   (b)  it is reasonable to do so because the agreement provides for amounts
        to be paid less frequently than is specified in the notice under
        subsection (2); or

   (c)  the regulations so provide-

and-

   (d)  the notice referred to in subsection (3) specifies the reason why the
        higher charge is made; and

   (e)  the owner of the goods agrees in writing to the higher charge; and

   (f)  the pawnbroker serves on the owner of the goods a copy of the
        agreement referred to in paragraph (e).