Pawnbrokers Act 1972 And Regulations (Act 81)

Pawnbrokers Act 1972 And Regulations (Act 81)

Published and Printed in July 2024

The Pawnbrokers Act 1972 is Malaysian legislation designed to oversee and regulate the pawnbroking industry. Its primary aim is to safeguard both pawnbrokers and customers (pawns) by prescribing clear legal standards, licensing requirements, rights, and responsibilities in pawn transactions.

Main Provisions of the Act:

Licensing

• Pawnbrokers must hold a valid licence to legally operate.

• Licensing is supervised by the authorities to ensure that only eligible and responsible individuals are permitted to conduct pawnbroking activities.

Regulation of Pawn Transactions

• Outlines the proper process for receiving items as pledges.

• Requires pawnbrokers to issue pawn tickets or receipts as proof of the transaction.

• Establishes rules for the valuation of pledged property.

Interest and Charges

• Sets limits on the interest and charges that pawnbrokers may impose.

• Protects borrowers from being subjected to unfair or excessive rates.

Responsibilities of Pawnbrokers

• Must maintain accurate records of all pawn dealings.

• Obliged to return pledged items once the loan is repaid within the redemption period.

• Provides conditions under which pledged items may be sold if they remain unredeemed.

Rights of Pawnors (Borrowers)

• Entitled to redeem their pledged items within the prescribed redemption period.

• Have the right to claim any surplus money if the pledged goods are sold for more than the outstanding debt.

Enforcement and Penalties

• Stipulates punishments for conducting pawnbroking without a licence.

• Offences include neglecting proper record-keeping, failing to issue pawn tickets, or charging unlawful interest.

• Grants enforcement authorities the power to act against violations and ensure compliance.

Pawnbrokers Act 1972 And Regulations (Act 81) Contains:

1. Pawnbrokers Act 1972 (Act 81)
2. Regulations:

• Pawnbrokers (Control And Licensing) Regulations 2004 - P.U. (A) 317/2004
• Pawnbrokers (Compounding of Offences) Regulations 2018 - P.U. (A) 58/2018

Find more statutes like Pawnbroker Act 1972 (Act 81): Statutes