The division licenses pawnbrokers operating in Oregon. A license is required by any entity that performs any of the following:
- Lends money at a rate of interest greater than 10 percent per year on the deposit or pledge of personal property
- Purchases personal property on the direct or implied condition of selling the personal property back at a stipulated price that would amount to paying interest or consideration in excess of 10 percent per year.
- Does business as a storage warehouse operator and lends money at a rate of interest greater than 10 percent per year for merchandise or personal property pledged or deposited as collateral security.
How to apply
- Submit a completed pawnbroker application in Word or PDF that includes the following:
- A $25,000 pawnbroker surety bond, or a $25,000 pawnbroker irrevocable letter of credit
- A current financial statement showing your total assets, liabilities, and net worth
- A resume citing experience and business qualifications for each manager, partner, officer, or other persons performing similar functions
- A feasibility study that justifies your business location
- A description of the security used to safeguard pledged items
- Proof of insurance with a declaration page from your insurance provider showing the type and amount of coverage for “Personal Property of Others” or “Pledged Items”
- A sample pawn ticket
- A $500 nonrefundable application fee
- Provide proof of current business registration with the Oregon Secretary of State
Applicants must also submit a completed Criminal Background and Credit Check Authorization form in Word or PDF for each manager, partner, officer, or other people performing similar functions.
A $350 license fee will be due if application is approved.
Interest and fees
Pawnbrokers are limited to:
- Offering loans for a minimum of 60 days.
- Charging interest at a rate not to exceed 3 percent per month (you may charge one month’s interest or $3 on pledge loans redeemed within the first month if interest accumulated amounts to less).
- Charging a set-up fee of 10 percent of the loan amount, with a minimum of $2 and a maximum of $250 for each item.
- Charging a storage fee of 5 percent of the loan amount, with a minimum of $2 and a maximum of $250 for each item.
You may offer loans on firearms; follow the same set-up and storage fees for other pawned items. You can charge a $3 firearm fee on the original loan, and if the loan is renewed you can charge a $1 fee. A $10 background check fee is required before a firearm can be released.
There are no restrictions on renewing the loan and you can charge the same interest and fees to extend another 60 days.
Licensed pawnbrokers must submit an annual report by Jan. 15 of each year.
All pawnbrokers must renew their licenses by Dec. 15 of each year and submit a $350 fee.