Loan period, storage, disposal and redemption of goods

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Loan period

A pawnbroker must fix the period of the loan on the security of pawned goods at the time the goods are pawned. The loan period starts the day the goods are pawned.

Storage and disposal of goods received

By law, second-hand dealers and pawnbrokers must:

  • keep all goods in the form in which they were received and without disposing of them in any way for seven days. This assists the recovery of stolen goods in the possession of dealers 
  • record the storage location of all goods in their possession or under their control.

Failure to do either of these can result in a fine of 20 penalty units.

Redemption of goods

A person who has pawned goods may redeem them by:

  • producing the pawn ticket and proof of identity, and
  • paying the outstanding loan amount.

Goods may be redeemed in this way at any time after the seven-day minimum storage period and before the pawnbroker sells or disposes of them, including after the loan period has expired.

Sale of unredeemed goods

If the loan period expires, the pawnbroker must offer the unredeemed goods for sale, at the best price reasonably obtainable, as soon as practicable.

A pawnbroker must not buy goods pawned with them.

Failure to comply with either of these laws carries a maximum fine of 20 penalty units.