How Does California Define Pawnbrokers and Secondhand Dealers?

Collateral lending companies are some of the most widely misunderstood types of businesses in the U.S. They’re typically thought of as shops that buy and sell used goods, such as antiques or firearms. In actuality, the primary business model of a pawnbroker is as a small scale lender. California law establishes specific definitions for pawnbrokers and secondhand dealers. These are two different types of companies, although the terms are often used interchangeably.

Pawnbrokers are defined as any person who holds goods, including vehicles, as collateral for loans. In contrast, a secondhand dealer is anyone who buys, sells, auctions, trades, sells on consignment, or takes in pawn any secondhand, tangible property. California law does not include coin dealers or gun show vendors in this definition.

The collateral lending industry in Concord, CA is subject to a highly specialized area of the law. Secondhand dealers and pawnbrokers can call The Law Offices of Jon Webster at (925) 609-7600 to retain the services of a knowledgeable lawyer.

Categories: Business Law

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