Pawnbroker Act 1972 (Act 81) & Regulations (As Of 20.5.2010)
Pawnbrokers Act 1972 (Act 81) & Regulations
Together With Malay Version
[As Of 20th May 2010]
Detailed Contents of Pawnbroker Act 1972 (Act 81):
The Malaysian law known as the Pawnbroker Act 1972 (Act 81) governs the pawnbroking industry there. The Act outlines the rights and obligations of pawnbrokers and their clients and provides a framework for the functioning of pawnbroking firms. The Act also strives to safeguard the interests of customers and stop pawnbrokers from abusing their power.
To operate a pawnbroking business, a person is required by the Act to get a licence from the Ministry of Housing and Local Government. The licence must be renewed yearly and is only good for one year. The Act also details the requirements applicants must meet in order to be considered for a licence as well as the reasons why a licence may be suspended or revoked.
A written agreement outlining the conditions of the pawn transaction must be given to clients, and a notice outlining the rates of interest and fees that apply to the transaction must be publicly displayed. These are just a few of the obligations that the Act places on pawnbrokers.
The Act also offers pawnbroker customers some protections. For instance, it forbids pawnbrokers from charging interest or fees above those allowed by the Act and mandates that they give their clients back the pledged object once the loan has been repaid.
The Act also specifies how pledged items that have not been redeemed by the client are to be disposed of. Generally speaking, pawnbrokers must notify the client before disposing of the item and must do so in accordance with the Act's prescribed procedures.
In addition to the Pawnbroker Act of 1972, rules exist in Malaysia that offer further instructions on how to run pawnbroking enterprises. The rules address a variety of subjects, such as the structure of pawn tickets, what is included in pawn agreements, and how pledged things should be disposed of.
Ultimately, the Pawnbroker Act of 1972 and the rules that follow it provide a framework for pawnbroking enterprises to operate within in Malaysia with the goal of ensuring that they do so fairly and openly. To make sure they continue to be applicable and successful in achieving their goals, the Act and regulations are periodically reviewed and modified.
Find more statutes like Pawnbroker Act 1972 (Act 81): Statutes