Parma, OH Business Licensing & Operations: Pawnbrokers (2026)
Key Facts
- Licensing authority
- Director of Public Safety
- License fee
- $100 plus $10 per employee
- Pawnbroker threshold
- over 8% annual interest on pledges
- Pledge holding period
- 72 hours minimum
- Purchased item holding period
- 15 days minimum
- License expires
- December 31 each year
- Penalty
- first-degree misdemeanor per day
Summary
Parma requires every pawnbroker to hold an annual license from the Director of Public Safety before lending against pledged property. Chapter 626 of the Codified Ordinances defines a pawnbroker as anyone charging over 8% annual interest on pledges, mandates fingerprinting and background checks for owners and employees, and sets fixed license fees renewed every December 31.
“Pawnbroker” means any person, including owners, agents, and employees, 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 or other remuneration in excess of 8% per annum... Beginning January 1, 2009, every junk dealer, pawnbroker, and secondhand dealer engaged in the business of pawning or dealing in junk or secondhand item(s) shall first procure a license to do so from the Director of Public Safety... Any pawnbroker, owner, agent, or employee shall retain such item(s) until the expiration of 72 hours after the pledge is made and shall retain any item(s) purchased until the expiration of 15 days after the purchase is made.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2026 S-30: Local legislation current to August 3, 2026 | State legislation current to June 25, 2025).
Full Breakdown
Under Parma Codified Ordinances Chapter 626, a pawnbroker is anyone lending money against pledged personal property at a charge, interest rate, or discount exceeding 8% per annum, or buying property with an agreement to make it available for repurchase at a higher price. Since January 1, 2009, every pawnbroker must file a sworn license application with the Department of Public Safety listing the business location, all owners' current and two prior addresses, birth date, Social Security number, physical description, a 2x2 photograph, and a full set of fingerprints taken by the Chief of Police.
The Director of Public Safety reviews the application for good character before issuing the license. The nonrefundable fee is $100 per license plus $10 for each named employee, paid at application; the license expires December 31 of the issuing year and must be renewed annually. No license issues to anyone convicted of a felony or a theft-related misdemeanor, and no licensee may employ such a person. Pawnbrokers must keep a photographed, described registry of every pledged or purchased item and the depositor's identification and residence, entered within one hour of the transaction, and must upload a daily list of transactions to the LeadsOnline database.
Pledged items must be held at least 72 hours, and purchased items at least 15 days, before resale or disposal, unless the Chief of Police authorizes earlier release, or extends the hold to 30 days when there is probable cause the item is stolen.
Violations & Fines
Violating any provision of Chapter 626, including the licensing, registry, or minimum holding-period rules, is a first-degree misdemeanor under Section 626.99, with a separate offense for each day a violation continues. An owner's license can also be immediately revoked, without renewal absent a special order of City Council, if an employee or agent violates the chapter.
Frequently Asked Questions
How much does a pawnbroker license cost in Parma?
How long must a Parma pawnbroker hold a pledged item before selling it?
Can a convicted felon get a pawnbroker license in Parma?
What happens if a Parma pawnbroker violates the licensing chapter?
Sources & Official References
Other rules in Parma
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