Pawnshops are used for a very long time where people take cash in exchange for valuable items. You bring in your valuables, deposit them as collateral, and take instant cash from the pawnbroker. However, there’s a very common question that revolves around the minds of the consumers- ‘’Do the pawnbrokers maintain a record of the personal information?’’ If yes, then for how long the records are maintained? Before answering all of this, the readers should know how a pawn shop works.
A pawnshop is a place where items are traded in exchange for cash for example- jewelry (gold, silver, and diamond), household items, musical instruments, luxury handbags, watches and so much more! You can deposit these items as collateral and the broker will offer you a loan against it. The pawnshops will ask you to show proof of ownership to ensure that the pawned items belong to the owner. This ID proof is essential to identify stolen goods. The shops have connection with the local police authorities so return stolen goods to the rightful owner. Once you prove your identity and accept the loan offer made by the pawnbroker, you can step out of the shop with a pawn ticket and cash! Now the question is why pawnbrokers ask for your ID proofs and authentication of the items? Proof of item authentication is important to ensure that the item is real and that the item is owned by the person who pawns it. This is done to ensure that the items are not stolen.
These pawnshops have built relations with the state-regulated or local agencies, and because of this, they can maintain records of the consumers. So whenever you come back to the shop for selling, buying, or pawning, they’ll ask you for identification. For example, Melbourne pawnshops maintain records of the consumers.
What records do they keep and for how long?
The pawnshops in order to act as per the laws of the state gathers personal information of the consumers who sell, buy, or pawn items. During such transactions, the brokers will ask you to reveal the identification details for maintaining records. You may need to provide one of these identifications:
- Drivers license
- Tertiary education ID
- Marriage certificate
- Full birth certificate
- Proof of Citizenship
Every time you but, sell or pawn your items, it will be entered into the database so that the concerned authorities keep track of the items that have been pawned. The information regarding the product and the person pawning or selling the items can be downloaded by the law enforcement officials.
For how long these records are kept?
Now the question is that for how long these records are maintained by the pawnshops? Every state has different laws with regards to how long the records can be maintained. Usually, the information can be stored for a minimum of 3 years and a maximum of 5 years. After the expiry of this term, the pawnbrokers will delete all the information from the electronic records. This is done to maintain the privacy of the consumers.