Texas Laws on Pawnshop License Revocation, Suspension, and Surrender

Texas Statutes
Finance Code
Title 4. Regulation Of Interest, Loans, And Financed Transactions
Subtitle C. Pawnshops
Chapter 371. Pawnshops
Subchapter F. License Revocation, Suspension, And Surrender

§ 371.251. Revocation Or Suspension Of Pawnshop License

(a)    After notice and hearing, the commissioner may revoke or suspend a pawnshop license if the commissioner finds that:
(1)    the pawnbroker has not paid a fee or charge imposed by the commissioner under this chapter;
(2)    the pawnbroker, knowingly or without exercising due care to prevent the violation, has violated this chapter or a rule adopted or an order issued under this chapter;
(3)    a fact or condition exists that, if it had existed or had been known to exist at the time of the original license application, clearly would have justified refusal to issue the license;
(4)    the pawnbroker has established an association with an unlicensed person who, with the knowledge of the pawnbroker, has violated this chapter;
(5)    the pawnbroker has aided or conspired with a person to circumvent this chapter;
(6)    the pawnbroker or a legal or beneficial owner of the pawnbroker is not of good moral character or has been convicted of a crime that the commissioner finds directly relates to the duties and responsibilities of the occupation of pawnbroker or would otherwise make the person unfit for a pawnshop license under Section 371.052;
(7)    the financial responsibility, experience, character, or general fitness of the pawnbroker or its owners and managers do not command the confidence of the public or warrant the belief that the business will be operated lawfully, fairly, and within the purposes of this chapter; or
(8)    the pawnbroker has not maintained the minimum net assets required by Section 371.072.
(b)    The commissioner may:
(1)    place on probation a person whose license is suspended; or
(2)    reprimand a pawnbroker for violating this chapter or a rule adopted under this chapter.

Cite as Tex. Fin. Code § 371.251

§ 371.252. Effect Of Revocation, Suspension, Or Surrender Of Pawnshop License

Revocation, suspension, or surrender of a pawnshop license does not affect a preexisting contract between the pawnbroker and a pledgor.

Cite as Tex. Fin. Code § 371.252

§ 371.253. Notice Of Revocation

(a)    On revocation of a pawnshop license by the commissioner, the pawnbroker shall send notice of the revocation to each pledgor with goods in the possession of, but not forfeited to, the pawnbroker on the revocation date.
(b)    The notice must be:
(1)    in a form prescribed by the commissioner; and
(2)    mailed not later than the fifth day after the revocation date to the pledgor at the address recorded on the pawn ticket.

Cite as Tex. Fin. Code § 371.253

§ 371.254. Redemption Of Goods After License Revocation Or Suspension

(a)    After revocation of a pawnshop license, the pawnbroker, for the sole purpose of allowing a pledgor to redeem pledged goods, shall maintain usual business hours at the pawnshop for 60 days after the latest maturity date of any pawn transaction made at that pawnshop.
(b)    If after the revocation of a license and within the period provided by Section 371.169 a pledgor requests an extension of that period, the pawnbroker shall grant an extension not to exceed 30 days.
(c)    The commissioner may exercise any authority conferred on the commissioner to protect the interest of a pledgor of goods in the possession of a pawnbroker whose license has been revoked, including assessment of a penalty or administrative enforcement under this chapter.
(d)    On suspension of a pawnshop license by the commissioner, the pawnbroker shall maintain the pawnshop's usual business hours during the suspension for the sole purpose of allowing a pledgor to redeem goods or to renew a pawn transaction that matures during the suspension.
(e)    A pawnbroker shall renew a pawn transaction that matures during a suspension if, not later than the 60th day after the maturity date, the pledgor requests a renewal.

Cite as Tex. Fin. Code § 371.254

§ 371.255. Revocation Or Suspension Of Pawnshop Employee License

After notice and hearing, the commissioner may revoke or suspend a pawnshop employee license if the commissioner finds that:
(1)    the license holder knowingly or recklessly violated this chapter or a rule adopted or order issued under this chapter;
(2)    a fact or condition exists that, if it had existed or had been known to exist at the time of the original license application, clearly would have justified refusal to issue the license; or
(3)    the moral character, business repute, and general fitness of the license holder do not warrant belief that the license holder will operate the business lawfully and fairly within the provisions of this chapter.

Cite as Tex. Fin. Code § 371.255

§ 371.256. Hearing

(a)    The commissioner shall send written notice of a pawnshop employee license revocation or suspension hearing to:
(1)    the license holder; and
(2)    the employing pawnbroker.
(b)    The commissioner shall hold the hearing not earlier than the 21st day after the date the notice was sent.

Cite as Tex. Fin. Code § 371.256

§ 371.257. Surrender Of License

(a)    The holder of a pawnshop license or a pawnshop employee license may surrender the license by delivering it to the commissioner with written notice of surrender.
(b)    Surrender does not affect a license holder's civil or criminal liability for an act committed before the surrender.

Cite as Tex. Fin. Code § 371.257

§ 371.258. Reinstatement Of License

(a)    This section applies to a pawnshop license or a pawnshop employee license.
(b)    The commissioner may reinstate a suspended pawnshop license or pawnshop employee license or issue a new license to the person whose license or licenses have been revoked if no fact or condition exists that clearly would have justified refusal to issue the license originally.
(c)    The commissioner shall reinstate an expired pawnbroker license if, not later than the 180th day after the date on which the license expired, the pawnbroker pays the commissioner the delinquent $125 annual fee plus a reinstatement fee of $1,000. After a pawnbroker's license has expired, the commissioner shall promptly send notice of reinstatement rights to the delinquent pawnbroker by certified mail.

Cite as Tex. Fin. Code § 371.258

§ 371.259. Certificate Of Standing; Copies

The commissioner, under the commissioner's seal and signature, shall provide a certificate of good standing or a certified copy of a pawnshop license or a pawnshop employee license to a person who applies and pays for the certificate or copy.

Cite as Tex. Fin. Code § 371.259