Pawnbrokers

Pawnbrokers, also known as collateral loan brokers, are licensed by each locality. The maximum interest rate which may be charged for a loan is 4 % a month. The loan is governed by the Federal Truth-­in-Lending Law. In addition to the interest, a service charge may be charged by a pawnbroker. The maximum service charge for loans under $100 is $4 dollars. Loans above $100 to $499 are $7 dollars. Loans $500 and above $10. The maximum period for a loan is 15 months, except that a consumer and pawnbroker may agree to extend the loan for an additional 15 months.

Required Disclosures

Upon receiving an item as a pledge, a pawnbroker must give the consumer a memorandum. The memorandum must contain a description of the item, the interest on the loan and notice of the consumer rights, which are as follows:

NOTICE OF ELECTION

(a) The holder of our pawn ticket may redeem the article pledged at any time prior to sale at private sale or public auction first following default. The article pledged may not be sold at private sale or public auction until it has remained four months in the collateral loan broker's possession.
(b) If the article pledged is sold at private sale or public auction, money, if any, in excess of the amount of the loan, interest, lawful auctioneer's commission, if applicable, lawful extra care charges, lawful ticket charges and the expenses of the advertisement of sale, if applicable, shall be paid to the holder of the pawn ticket.
(c) If the collateral loan broker shall purchase the article pledged at auction, the holder shall have an additional ten days to redeem the article pledged by paying to the collateral loan broker the amount of the loan, interest, lawful auctioneer's commission, lawful extra care charges, lawful ticket charges and the expense of the advertisement of sale.
(d) A holder may sell his/her ticket to a third party at any time prior to private sale or auction, or he may sell his/her ticket to the collateral loan broker, any time ninety or more days after the article was pledged.
(e) If his/her ticket is sold to a collateral loan broker, the holder may redeem the ticket within ten days after the sale, by paying the collateral loan broker the amount paid for the ticket.

NO CHECKS ACCEPTED PLEDGES MAY NOT BE EXAMINED PRIOR TO REDEMPTION
New York City Regulations
In New York City, pawnbrokers are licensed by the Commissioner of Consumer Affairs. New York City pawnbrokers must comply with both State and City rules and any violations by New York City pawnbrokers should be reported to the City Department of Consumer Affairs.
New York City Department of Consumer Affairs
42 Broadway | New York, NY 10004
For information call 3-1-1 or visit http://www.nyc.gov/html/dca/home.html

NYC Department of Consumer Affairs
Paradise Pawnbrokers, Inc. Grand Concourse Location
  Pawnbroker License number: #076664
Dealer License number:#1351861
NYC Department of Consumer Affairs
Paradise Pawnbrokers, Inc. Jerome Ave. Location
  Pawnbroker License number: #1047395
Dealer License number:#1047396