by Melanie J. Martin

Florida pawn shops must obtain a license from the Florida Department of Agriculture and Consumer Services. Pawn shop owners must renew their license annually. In addition to obeying state laws, pawnbrokers must follow all applicable federal laws such as the Truth in Lending Act and the Equal Credit Opportunity Act, which prohibits credit discrimination based on characteristics such as race and national origin.
Moral Character
A person applying to be a pawnbroker in Florida must have good moral character. The Florida Pawnbroking Act defines this as not having been convicted of a felony within the past 10 years, and not acting as beneficial owner for a person convicted of a felony within the past 10 years. If two or more people are applying for a license to open a pawn shop together, each person with at least 10 percent interest in the business must meet these requirements.
Net Worth
An individual applying to be a pawnbroker in Florida must have a net worth of at least $50,000. To prove his net worth, the applicant must submit a current financial statement prepared by a certified in-state public accountant, or an affidavit stating his net worth along with supportive evidence. If applying as a corporation, the applicant must submit his latest tax return. If his net worth falls below $50,000, he must possess a bond from a surety agency in the amount of $10,000. He must file this bond with the Florida Department of Agriculture and Consumer Services. If the pawnbroker is found guilty of fraud, theft or other violations, this bond will be used to reimburse the customer.
Understanding of Business Requirements
Pawnbrokers must understand their legal requirements to customers under Florida law. To make a transaction, pawnbrokers must use a transaction form approved by the Florida Department of Agriculture and Consumer Services to create a written contract. The form must state the pawn shop’s name and address. The pawnbroker must record a thorough description of the object being pawned, including any model, serial numbers and identifying marks, according to the Florida Law Enforcement Property Recovery Unit. While the pawn shop holds the item for the customer, the shop can collect up to 25 percent interest per month. If an item becomes lost or stolen, the pawnbroker must offer a replacement of equal value. She must give customers 60 days to return for their merchandise before selling it, and she has the option to agree to an extension of the time frame.
Penalties
Penalties in Florida for noncompliance with pawn shop laws can result in a $5,000 fine, according to the Florida Division of Consumer Services. The Department of Agriculture and Consumer Services can also suspend a license or issue a conditional or probationary license if it finds a pawnbroker in violation of regulations.