PAWNBROKERS AND PRECIOUS METALS DEALERS
The Division of Financial Institutions regulates pawnbrokers in Ohio pursuant to
Chapter 4727 of the Ohio Revised Code.
A person wishing to act as a pawnbroker must first obtain a license. A pawnbroker is defined as a person engaged in the
business of lending money on deposit or pledges of personal property other than securities, printed evidence of indebtedness,
titles, deeds, or bills of sale, at a total charge, rate of interest, or discount of other remuneration in excess of eight
per cent per annum. The definition also includes a person engaged in the business of purchasing personal property from another
person with an agreement that the personal property will be made available to that other person for repurchase within an agreed
to time period and for an amount greater than the price originally paid to that other person for the purchase of the
Instructions and the forms required to apply for a pawnbroker license can be obtained at
http://www.com.ohio.gov/fiin/Forms.aspx . The Division will investigate the applicant to determine
they meet all the statutory requirements for licensure under the act.
Licenses must be renewed semi-annually. Each office operated by a pawnbroker must be individually licensed. If an office is to be
relocated, the licensee must obtain a new license from the Division prior to conducting business at the new location.
Licensees are responsible for understanding and complying with the applicable statutes. The Division will periodically examine
licensees for compliance with Ohio law and has the power to issue subpoenas in the process of conducting examinations and
In addition, the Division may deny applications for licensure, revoke, suspend, or refuse to renew licenses, or impose fines against
licensees pursuant to the Ohio Administrative Procedures Act, Chapter 119 of the Ohio Revised Code.
On December 5, 2012, The United States District Court for the Southern District of Ohio ordered the Ohio Department of Commerce to cease enforcement of the Precious Metals Dealers Act;
Chapter 4728 of the Ohio Revised Code. On December 28, 2012, the Court modified its order to allow the
Department to enforce R.C. 4728.12 and to process applications and monitor compliance with those who wish to voluntarily comply with the PMDA. The Court’s orders can be viewed at the link below.
The preliminary injunction order has been appealed. In the meantime, the Division will take no action regarding precious metals dealers except as specifically permitted in the Court’s December 28th
Precious Metals Dealers Preliminary Injunction
Voluntary Compliance Acknowledgement for Precious Metals Dealers
Questions regarding the industries regulated by Consumer Finance may be e-mailed to: email@example.com