How are pawnbrokers regulated?
Response: Most of the regulations have been initiated, sponsored and supported by the pawnbroking industry. At the state level, most pawnbrokers are licensed and regulated. At the federal level, they follow rules from the Bureau of Alcohol, Tobacco and Fire Arms (FFL license), and are regulated by the Federal Reserve Board (Truth In Lending Act, Regulation Z) in much the same way as banks. They are also required by the Patriot Act to check all customers against the Treasury Department’s database of known terrorists.
