California Pawnbroker Regulations

§ 21200. Maximum compensation 
§ 21200.1. Loan setup fee
§ 21200.5. Schedule of charges; posting
§ 21200.6. Handling and storage charges; schedule of charges 
§ 21200.7. Posting of maximum compensation 
§ 21200.8. Processing charge for firearms 
§ 21200.9. Repurchase of property; no promise by pawnbroker to seller 
§ 21201. Written contract to be furnished borrower; contents; notice; retention and redemption of pledged articles; foreclosure; sale of pledged property 
§ 21201.1. Loss of pawn ticket; verification of claimant; fee 
§ 21201.2. Notice of expiration of redemption; fee 
§ 21201.3. Written contract; item storage provision; insurance of items; articles stored off premises; violation; penalties 
§ 21201.4. Loan charges pursuant to written contract; determination of amount 
§ 21201.5. New loan on pledged property 

Financial Code (Refs & Annos)
Division 8. Pawnbrokers
Chapter 2. Pawnbroker Regulations (Refs & Annos)
§ 21200. Maximum compensation 
(a) Except as otherwise provided in this chapter, no pawnbroker shall charge or receive compensation at a rate exceeding the sum of the following:
(1) Two and one-half percent per month on the unpaid principal balance of any loan.
(2) A charge not exceeding three dollars ($3) a month on any loan when the monthly charge permitted by paragraph (1) would otherwise be less.
(b) One month's interest may be charged for any part of the month in which pawned property is redeemed.

Financial Code (Refs & Annos)
Division 8. Pawnbrokers
Chapter 2. Pawnbroker Regulations (Refs & Annos)
West's Ann.Cal.Fin.Code § 21200.1
§ 21200.1. Loan setup fee
A loan setup fee not to exceed five dollars ($5) or 2 percent, whichever is greater, may be charged for each loan. However, the maximum loan setup fee shall not exceed ten dollars ($10). Loan setup fees are in addition to any other allowed charges.

Financial Code (Refs & Annos)
Division 8. Pawnbrokers
Chapter 2. Pawnbroker Regulations (Refs & Annos)
§ 21200.5. Schedule of charges; posting
A pawnbroker may charge as prescribed in the following schedule:Schedule of Charges(a) A charge not exceeding three dollars ($3) may be made on any loan for not more than three months which does not exceed nineteen dollars and ninety-nine cents ($19.99).(b) A charge not exceeding six dollars ($6) may be made on any loan for not more than three months of twenty dollars ($20) or more, but not exceeding forty-nine dollars and ninety-nine cents ($49.99).(c) A charge not exceeding nine dollars ($9) may be made on any loan for not more than three months of fifty dollars ($50) or more, but not exceeding seventy-four dollars and ninety-nine cents ($74.99).(d) A charge not exceeding twelve dollars ($12) may be made on any loan for not more than three months of seventy-five dollars ($75) or more, but not exceeding ninety-nine dollars and ninety-nine cents ($99.99).(e) A charge not exceeding fifteen dollars ($15) may be made on any loan for not more than three months of one hundred dollars ($100) or more, but not exceeding one hundred seventy-four dollars and ninety-nine cents ($174.99).(f) A charge not exceeding 9 percent may be made on any loan for not more than three months on any loan of one hundred seventy-five dollars ($175) or more, but not exceeding two thousand four hundred ninety-nine dollars and ninety-nine cents ($2,499.99).(g) The monthly charge for any extension of a written contract required by Section 21201 or 21201.5 shall be computed in accordance with the provisions of Section 21200.(h) The schedule of charges prescribed by this section shall be posted in a place clearly visible to the general public.

Financial Code (Refs & Annos)
Division 8. Pawnbrokers
Chapter 2. Pawnbroker Regulations (Refs & Annos)
§ 21200.6. Handling and storage charges; schedule of charges 

(a) In addition to other allowed charges, at the time property is redeemed a pawnbroker may collect a handling and storage charge for certain pawned articles. Irrespective of the duration of the loan, the maximum amount that may be charged pursuant to this section is in accordance with the following schedule:
(1) Five dollars ($5) for any article that cannot be contained within one cubic foot.
(2) Ten dollars ($10) for any article that cannot be contained within three cubic feet.
(3) Twenty dollars ($20) for any article that cannot be contained within six cubic feet and one dollar ($1) for each additional cubic foot in excess of six cubic feet.
(b) No storage charge is allowed for any article that can be contained within one cubic foot.
(c) For purposes of this section, cubic feet shall be determined by multiplying the width of an article, at its greatest width, by the depth of an article, at its greatest depth, by the height of an article, at its greatest height.

Financial Code (Refs & Annos)
Division 8. Pawnbrokers
Chapter 2. Pawnbroker Regulations (Refs & Annos)
§ 21200.7. Posting of maximum compensation 
The maximum charge of compensation charged by a pawnbroker pursuant to the authority of Section 21200 shall be posted in a place clearly visible to the general public.

Financial Code (Refs & Annos)
Division 8. Pawnbrokers
Chapter 2. Pawnbroker Regulations (Refs & Annos)
§ 21200.8. Processing charge for firearms 
In addition to other allowed charges, a pawnbroker may collect a processing charge of four dollars ($4) for each firearm pawned.

Financial Code (Refs & Annos)
Division 8. Pawnbrokers
Chapter 2. Pawnbroker Regulations (Refs & Annos)
§ 21200.9. Repurchase of property; no promise by pawnbroker to seller 
No licensed pawnbroker shall promise any seller of tangible personal property that the seller may repurchase property sold to the pawnbroker.

Financial Code (Refs & Annos)
Division 8. Pawnbrokers
Chapter 2. Pawnbroker Regulations (Refs & Annos)
§ 21201. Written contract to be furnished borrower; contents; notice; retention and redemption of pledged articles; foreclosure; sale of pledged property 
Every loan made by a pawnbroker for which goods are received in pledge as security shall be evidenced by a written contract, a copy of which shall be furnished to the borrower. The loan contract shall provide a four-month loan period, shall set forth the loan period and the date on which the loan is due and payable, and shall clearly inform the borrower of his or her right to redeem the pledge during the loan period.
Every loan contract shall contain the following notice, in at least 8-point boldface type and circumscribed by a box, immediately above the space for the borrower's signature:
"You may redeem the property you have pledged at any time until the close of business on ___ [fill in date four months from date loan begins]. To redeem, you must pay the amount of the loan and the applicable charges which have accrued through the date on which you redeem."
Every pawnbroker shall retain in his or her possession every article pledged to him or her for a period of four months. During such period the borrower may redeem the articles upon payment of the amount of the loan and the applicable charges. If the borrower and the pawnbroker agree in writing that the pawned property may be stored off premises, following the request for redemption of the loan, the pawnbroker shall return the pledged property to the consumer the next calendar day when both the pawnbroker's store and the storage facility are open, not to exceed two business days.
If any pledged article is not redeemed during the four-month loan period as provided herein, and the borrower and pawnbroker do not mutually agree in writing to extend the loan period, the pawnbroker shall notify the borrower within one month after expiration of the loan period. If the pawnbroker fails to notify the borrower within one month after the expiration of the loan period, the pawnbroker shall not charge interest from the day after the expiration of the one-month period. The pawnbroker shall notify the borrower at his or her last known address of the termination of the loan period, by a means for which verification of mailing or delivery of the notification can be provided by the pawnbroker, and extending the right of redemption, during posted business hours, for a period of 10 days from date of mailing of that notice. The 10-day notice shall include a statement that: "If the tenth day falls on a day when the pawnshop is closed, the time period is extended to the next day that the pawnshop is open."
However, the posted schedule of charges required pursuant to Section 21200.5 shall contain a notice informing the borrower that if he or she desires, the pawnbroker shall send the notice of termination of the loan period by registered or certified mail with return receipt requested, upon prepayment of the mailing costs. If any pledged article is not redeemed within the 10-day notice period, the pawnbroker shall become vested with all right, title, and interest of the pledgor, or his or her assigns, to the pledged article, to hold and dispose of as his or her own property. Any other provision of law relating to the foreclosure and sale of pledges shall not be applicable to any pledge the title to which is transferred in accordance with this section. The pawnbroker shall not sell any article of pledged property until he or she has become vested with the title to that property pursuant to this section. The sale of pledged property is a misdemeanor pursuant to Section 21209.

Financial Code (Refs & Annos)
Division 8. Pawnbrokers
Chapter 2. Pawnbroker Regulations (Refs & Annos)
§ 21201.1. Loss of pawn ticket; verification of claimant; fee 
Whenever a pledger, or his or her assignee, loses a pawn ticket, a fee of not to exceed ten dollars ($10) may be charged for services of verifying the identification of the claimant, fingerprinting the claimant, and having the claimant execute a declaration under penalty of perjury.

Financial Code (Refs & Annos)
Division 8. Pawnbrokers
Chapter 2. Pawnbroker Regulations (Refs & Annos)
§ 21201.2. Notice of expiration of redemption; fee 
If the pledgor fails to redeem any pawned item during the loan period, thereby obliging the pawnbroker to mail the notice required under Section 21201, the pawnbroker may charge a fee of up to three dollars ($3) for services and costs pertaining to the preparation of the notice, in addition to any other allowed charges.

Financial Code (Refs & Annos)
Division 8. Pawnbrokers
Chapter 2. Pawnbroker Regulations (Refs & Annos)
§ 21201.3. Written contract; item storage provision; insurance of items; articles stored off premises; violation; penalties 
(a) The written contract required pursuant to Section 21201 shall contain a provision in 8-point type stating whether the item or items pledged are to be stored at the business premises of the pawnbroker and adjacent to this provision, the following disclosure shall be made: "We must return your property within two business days if your property is stored off premises."
(b) Every pawnbroker shall display a sign at his or her premises indicating whether or not pawned items are insured.
(c) If a pawnbroker stores pledged property at a location other than the pawnshop, the pawnbroker shall post a conspicuous sign stating that pawned items may be stored off premises with the consent of the pledgor and that following the redemption of a loan, property is required to be returned the next calendar day upon which both the pawnbroker's store and the storage facility are open, not to exceed two business days.
(d) Notwithstanding Section 21209, a violation of this section is an infraction.
(e) This section shall become operative July 1, 1995.

Financial Code (Refs & Annos)
Division 8. Pawnbrokers
Chapter 2. Pawnbroker Regulations (Refs & Annos)
§ 21201.4. Loan charges pursuant to written contract; determination of amount 
Charges for the first three months of any loan made pursuant to the written contract required by Section 21201 or 21201.5 shall be determined by the application of the schedule of charges contained in Section 21200.5. Charges for any extension of time following the first three months of any loan shall be determined by application of the schedule of maximum compensation contained in Section 21200.

Financial Code (Refs & Annos)
Division 8. Pawnbrokers
Chapter 2. Pawnbroker Regulations (Refs & Annos)
§ 21201.5. New loan on pledged property 
A pledgor may request, and a pawnbroker may consent to, a new loan to take effect upon or at any time after the expiration of the loan period stated in the original loan contract delivered to the pledgor under Section 21201. The pledgor shall pay in cash or another form acceptable to the pawnbroker all of the charges and interest due under the original loan, and the remaining unpaid balance of the actual amount borrowed under the original loan shall be debited to the new loan on which the same article or articles are pledged. The loan to which the debit is applied shall be processed as a new loan and shall be deemed to be a new loan subject to loan origination fees, storage fees, and other fees permitted by this chapter, when applicable. The new loan contract required by Section 21201 shall disclose the amount of the original loan that is debited to the new loan.

Cal. Fin. Code §§ 21200 - 21201.5