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Pawnbroker licensing

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
    • Information about off-site storage, if it will be used by the applicant
    • 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.

Off-Site Storage

Licensed pawnbrokers who accept large items as pledges may wish to review OAR 441-740-0029 that explains when off-site storage may be used and the requirements to use it. If you are currently licensed and wish to add a off-site storage location, please file an amendment application providing information about your off-site location. Please be sure to submit with your amended application:

  • A copy of the company’s policies and procedures regarding off-site storage, which must include how the company will determine what items are appropriate for off-site storage.
  • A description of the security used to safeguard pledged items at the off-site storage location.
  • Type and amount of insurance coverage carried to cover pledged items at the off-site premises, if separate from the insurance for the business location.

Firearm loans

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.

Renewals and Annual Reports

Oregon has combined the annual report and renewal process. Instead of these being separate, now All all pawnbrokers must renew their licenses and file their annual report by Jan. 15th of each year. To do so, the licensee must submit a completed a combined Annual Report including Pawnbroker Annual Renewal and Required Additional Information with the $350 renewal fee. If any information about the licensee has changed, the licensee must also submit a Renewal Application Change of Information Supplement, which is included in the combined form. You will only need to complete the Pawnbroker Criminal Background and Credit Check Authorization form, which is part of the Renewal Application Change of Information Supplement, for any new managers, partners, officers, directors or other people performing similar functions.

Examinations of Licensees

The Division conducts periodic routine and for-cause examinations of pawnbrokers with or without notice. The Division charges $75 per hour for examiner time for the exam. We encourage licensed pawnbrokers to review the examination form our examiners use and conduct self-evaluations to help ensure their compliance with Oregon requirements. The Division maintains the laws and rules related to pawnbrokers that the Division enforces on our website here.