Loans (payday, predatory, student), Pawn Article

Arizona Pawn Laws

Protect Yourself When Pawning Property

Remember: Pawn Laws differ depending on where you pawn your property – each state has different pawn laws.

Repaying the Loan – Getting Your Property Back
•    In Arizona, a loan must be paid off in no less than 3 months, but you and the pawnbroker can agree on a longer term.
          Any agreement for a longer period should be in writing on the pawn ticket.
          A pawnbroker cannot require you to pay off your pawn ticket before it is due.
•    After the due date, the pawnbroker may sell your property or keep it.
           Note: The pawnbroker has no legal duty to inform you that you are behind in payments or if the broker plans to sell or keep your property.
                The pawnbroker can sell your property one day after the due date.

Pawn tickets:  What Information Should the Pawn Ticket Include?
•    The Pawnshop’s Name; Address; Phone Number.
•    Your Name; Address; Phone Number.
•    Your Physical Description: Height; Weight; Hair/Eye Color.
•    The number and type of identification documents you presented – Example: driver’s license.
•    A list of property that you left with the pawnbroker.
•    The date of the pawn transaction.
•    The date that the loan must be paid off.
•    The amount of money lent under the loan.
•    A statement that after the due date, the pawned property is owned by the pawn broker.

Interest Rates and Additional Fees: What is Legal

Interest Rates
•    There IS a limit on the amount of interest a pawnbroker is legally able to charge.
•    In Arizona, the highest interest rate a pawnbroker can charge is 8% for the first 2 months and 6% for each month thereafter under the pawn agreement.

Other Allowable Fees
•    $5.00 set-up fee for the pawn account.
•    $7.50 fee for a lost pawn ticket.
•    $5.00 fee for each firearm pawned.
•    $5.00 per month storage fee for each item pawned.
•    $5.00 per day storage fee for pawned vehicles.
•    Any taxes or fees charged by the government on pawn transactions.
•    ALL OTHER FEES ARE ILLEGAL.

Protecting Your Rights Under Pawn Law

Here are a few tips to help protect your rights:
•    New Mexico and the reservation have pawn laws that grant more protection to you than in Arizona.
•    Keep track of the amount of time your property has been pawned.
•    Check that all information is correct and that it is included on your pawn ticket.
•    Make sure that you are not charged an interest rate higher than 8% per month for the first 2 months and 6% for each month thereafter.
•    Do not pay any fees other than: set-up fee, lost pawn ticket fee, fee for firearm, storage fee and government charges.