Washington, DC Business Licensing & Operations: Pawnbrokers (2026)
Key Facts
- Governing law
- D.C. Code § 47-2884.02(a)
- Cash capital required
- $20,000 minimum (§ 47-2884.03(c))
- License fee
- $800 ($250 after April 30)
- Bond required
- $5,000 surety bond
- Interest cap
- 5%/month first 6 months, 3% after
- Penalty
- Fine or up to 90 days jail
Summary
In Washington, D.C., no one may operate as a pawnbroker without first getting a license from the Mayor under D.C. Code § 47-2884.02(a). Licensees must post at least $20,000 in cash capital, file a $5,000 surety bond, and pay an $800 license fee, and the law caps the interest a pawnbroker can charge and requires daily reporting of pledged goods to police.
(a) No person shall engage in business as a pawnbroker except as authorized in this part and without first obtaining a license from the Mayor as hereinafter provided. (b) No person, other than a licensee under this part, shall display any sign or other device in or about any business premises, or in any advertising matter, which in any manner resembles the emblem or sign commonly used by pawnbrokers nor display any sign which is calculated to deceive, nor use the word 'pawnbroker' in or about any business premises or in any advertising matter, nor shall any such person hold himself out to the public to be a pawnbroker either by advertising, soliciting, signs, or otherwise.
Full Breakdown
D.C. Code § 47-2884.01 defines a "pawnbroker" as any person who lends or advances money for profit on the pledge and possession of personal property, or who buys personal property on condition of selling it back at a stipulated price. To get licensed, § 47-2884.03 requires a written application to the Mayor showing at least $20,000 in cash capital available for the pawn business at the licensed location, plus a nonrefundable $50 investigation fee; at least 30 days before issuance, all affected Advisory Neighborhood Commissions must be notified and their opinions given great weight.
Section 47-2884.04 requires a $5,000 surety bond, renewed annually, conditioned on compliance with the pawnbroker law, and a person injured by a licensee's noncompliance may sue on that bond directly. If the Mayor approves the application after finding the applicant's "financial responsibility, experience, character, and general fitness" sufficient to "command the confidence of the community," § 47-2884.05(a) sets the license fee at $800, dropping to $250 for a license issued after April 30 of the year, and licenses expire November 1 each year unless renewed for a $550 fee under § 47-2884.06(a).
The Mayor may revoke or suspend a license after 10 days' notice and a hearing if the licensee drops the required bond or violates the pawnbroker law under § 47-2884.06(b). Interest is capped by § 47-2884.09(a): up to 5% per month for the first 6 months of a loan and 3% per month after that, with a minimum charge of $2 per month allowed in place of interest. A borrower may rescind a pawn loan once a year by the end of the same business day for a $2 fee under § 47-2884.09(c).
Every pawnbroker must keep a detailed pledge book open to Mayoral inspection and deliver a daily transcript to the Chief of Police by 11:00 a.m. under § 47-2884.11, and may not sell a pledge until it has been held 6 months, or sell it without 30 days' mailed notice to the pawner, under §§ 47-2884.13 and 47-2884.14.
Violations & Fines
Operating as a pawnbroker without a license, or violating any provision of this part, is punishable under § 47-2884.16(a) by a fine up to the amount set in § 22-3571.01 or imprisonment for up to 90 days, and the District may instead pursue civil fines through Chapter 18 of Title 2. A loan made in violation of the part is void under § 47-2884.16(b): the lender loses the right to collect principal or interest, and the pledged item must be returned to the borrower without payment.
Frequently Asked Questions
What does it take to get a pawnbroker license in D.C.?
How much can a D.C. pawnbroker charge in interest?
Can I back out of a pawn loan after I take it?
What happens if someone pawns stolen goods or operates without a license?
Sources & Official References
Other rules in Washington
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