Penalties for Violation of Texas Pawnshop Laws

Texas Statutes
Finance Code
Title 4. Regulation Of Interest, Loans, And Financed Transactions
Subtitle C. Pawnshops
Chapter 371. Pawnshops
Subchapter G. Enforcement; Penalties

§ 371.301. Commissioner's Enforcement Powers

For purposes of enforcing this chapter, the commissioner:
(1)    has the powers granted to the commissioner under Chapter 14;
(2)    may exercise those powers in the same manner as those powers may be exercised under:
(A)    Chapters 14, 392, and 394;
(B)    Subtitle B, Title 4; and
(C)    Chapters 51, 302, 601, and 621, Business & Commerce Code; and
(3)    has any authority granted the commissioner by other law.

Cite as Tex. Fin. Code § 371.301

§ 371.302. Order To End Violation; Injunction; Damages

(a)    If the commissioner has reasonable cause to believe that a person is violating this chapter, the commissioner, in addition to and without prejudice to other authority provided by this chapter, may enter an order requiring the person to stop or to refrain from the violation.
(b)    At the commissioner's request, the attorney general or an attorney authorized to represent this state in district court shall sue in any district court with venue or in a district court of Travis County to enjoin a person from violating or continuing a violation of this chapter or from acting to further a violation. The court may enter an order or judgment awarding a preliminary or permanent injunction. The court may issue an additional order or judgment for actual damages suffered by a person as a result of the violation.

Cite as Tex. Fin. Code § 371.302

§ 371.303. Administrative Penalty

(a)    The commissioner may assess an administrative penalty against a person who violates this chapter or a rule adopted under this chapter.
(b)    The commissioner may assess the administrative penalty in an amount not to exceed $1,000.
(1)    Expired.
(2)    Expired.
(c)    Each day a violation continues or occurs may be considered a separate violation for purposes of this section. The aggregate amount of penalties that may be assessed under this section against a person during one calendar year may not exceed $10,000 for violations an element of which occurred at the same business location.
(d)    In determining the amount of a penalty, the commissioner shall consider:
(1)    the seriousness of the violation, including the nature, circumstances, extent, and gravity of the prohibited act;
(2)    the history of previous violations;
(3)    the amount necessary to deter future violations;
(4)    efforts to correct the violation; and
(5)    any other matter that justice may require.
(e)    If, after investigation of a possible violation and the facts relating to that possible violation, the commissioner determines that a violation has occurred, the commissioner shall issue a preliminary report that states:
(1)    the facts on which the conclusion is based;
(2)    the fact that an administrative penalty is to be imposed; and
(3)    the amount to be assessed.
(f)    Not later than the 10th day after the date on which the commissioner issues the preliminary report, the commissioner shall send to the person charged with the violation a copy of the report and a statement that the person has a right to a hearing on the alleged violation and the amount of the penalty.
(g)    Not later than the 20th day after the date on which the report is sent, the person charged may make a written request for a hearing or may pay to the commissioner the amount of the administrative penalty. A person who does not request a hearing or pay the amount of the penalty within the prescribed time waives the right to a hearing.
(h)    If the person charged accepts the commissioner's determination, the commissioner shall issue an order approving the determination and ordering payment of the recommended penalty.
(i)    If it is determined after a hearing that the person has committed the alleged violation, the commissioner shall give written notice to the person of each finding established by the hearing and the amount of the penalty and shall enter an order requiring the person to pay the penalty.
(j)    Not later than the 30th day after the date on which the notice is received, the person charged shall pay the administrative penalty in full.

Cite as Tex. Fin. Code § 371.303

§ 371.304. Acting Without A License; Offenses

(a)    A person who violates Section 371.051 commits an offense.
(b)    A person commits an offense if the person:
(1)    accepts employment at a pawnshop writing pawn transactions; and
(2)    does not comply with Section 371.101(a).
(c)    A person commits an offense if the person continues employment at a pawnshop after:
(1)    the person's application for a pawnshop employee license is denied; or
(2)    the person's pawnshop employee license has expired or has been revoked, suspended, or surrendered.
(d)    Except as provided by Subsection (e), an offense under this section is a Class B misdemeanor.
(e)    An offense under Subsection (a) is a misdemeanor punishable by:
(1)    a fine not to exceed $10,000;
(2)    confinement in county jail for a term not to exceed one year; or
(3)    both the fine and confinement.

Cite as Tex. Fin. Code § 371.304

§ 371.305. Wilful Violation Of Chapter; Offense

(a)    A person commits an offense if the person holds a license under this chapter and:
(1)    wilfully violates this chapter; or
(2)    wilfully makes a false entry in a record specifically required by this chapter.
(b)    An offense under this section is a misdemeanor punishable by a fine not to exceed $1,000.

Cite as Tex. Fin. Code § 371.305

§ 371.306. Penalty For Certain Violations

(a)    A pawnbroker who contracts for, charges, or collects a pawn service charge that is greater than the amount authorized by this chapter or otherwise violates this chapter:
(1)    is liable for twice the amount of the pawn service charge contracted for; and
(2)    shall return the goods pledged in connection with the pawn transaction on request of the pledgor and payment of the balance due.
(b)    A pawnbroker who contracts for, charges, or collects a pawn service charge that is greater than twice the amount authorized by this chapter:
(1)    is not entitled to collect any amount on the pawn transaction; and
(2)    shall return the goods pledged in connection with the pawn transaction on request of the pledgor.
(c)    Subsection (a) or (b) does not apply to a violation that results from an accidental and bona fide error, corrected upon discovery.

Cite as Tex. Fin. Code § 371.306