PAWNBROKERS

Municipal Code of Chicago tit. 4, ch. 4-240

in effect

Municipal Code of Chicago § 4-240-010 Definitions.

4-240-010 Definitions. As used in this chapter: "Jewelry" means any precious metal as defined in Section 4-264-005, or any precious stone or gem as defined in Section 4-264-005, including, but not limited to, earrings, chains, pendants, pins, brooches, bracelets, armbands, rings, head or hair ornaments, diadems, cuff links or similar objects comprising or containing precious metals or precious stones. The term "jewelry" also includes articles comprising or containing precious metals or precious stones, including, but not limited to, optical frames, pens, pencils, flatware or holloware. "Pawnbroker" means every person engaged in the business of receiving property in pledge or as security for money or other things advanced to the pawner or pledger. "Secondhand property" has the meaning ascribed to that term by Section 4-264-005 of this Code. "Serial number" has the meaning ascribed to that term by Section 4-264-005 of this Code. "Stolen cell phone database" has the meaning ascribed to that term by Section 4-264-005 of this Code. "Wireless communication device" or "cell phone" means any device through which personal wireless services, as defined in 47 U.S.C. 332(c)(7)(C)(i), are transmitted. (Added Coun. J. 12-9-92, p. 25465; Amend Coun. J. 2-26-97, p. 40141; Amend Coun. J. 9-8-10, p. 99259, § 6; Amend Coun. J. 7-30-14, p. 85719, § 2; Amend Coun. J. 9-6-17, p. 54980, § 1)

Municipal Code of Chicago § 4-240-020 License - Required.

4-240-020 License - Required. No person shall engage in the business of a pawnbroker within the city without a license. No junk peddler, junk facility or secondhand dealer shall, during the period for which he shall have been licensed or permitted as such, receive or hold any license to engage in the business of a pawnbroker. (Added Coun. J. 12-9-92, p. 25465; Amend Coun. J. 10-7-98, p. 78812)

Municipal Code of Chicago § 4-240-030 License - Application - Investigation.

4-240-030 License - Application - Investigation. An application for said license shall be made in conformity with the general requirements of this Code relating to applications for licenses. The commissioner of business affairs and consumer protection shall investigate the applicant to determine whether said applicant is of good moral character. (Added Coun. J. 12-9-92, p. 25465; Amend Coun. J. 5-9-07, p. 105047, § 13; Amend Coun. J. 11-19-08, p. 47220, Art. V, § 5)

Municipal Code of Chicago § 4-240-040 License - Fee.

4-240-040 License - Fee. The fee for a pawnshop license shall be as set forth in Section 4-5-010. (Added Coun. J. 12-9-92, p. 25465; Amend Coun. J. 11-15-06, p. 92532, § 1; Amend Coun. J. 1-13-10, p. 83191, § 1)

Municipal Code of Chicago § 4-240-050 Reserved. Editor's note – Coun. J. 6-10-96, p. 23652, repealed § 4-240-050, which pertained to license – bond.

Municipal Code of Chicago § 4-240-060 Interest charges - Designated - Posting requirements.

4-240-060 Interest charges - Designated - Posting requirements. (a) All interest charges and fees assessed by any pawnbroker shall comply with the Illinois Pawnbroker Regulation Act, 205 ILCS 5 10, as amended. (b) Every pawnbroker shall at all times have and keep the above paragraphs printed in the English language, framed and posted in a prominent and conspicuous position in his place of business, so that said provision of this Code shall be plainly legible and visible to all persons depositing or pledging property with such pawnbrokers. (Added Coun. J. 12-9-92, p. 25465; Amend Coun. J. 2-26-97, p. 40141; Amend Coun. J. 7-26-06, p. 81853, § 1)

Municipal Code of Chicago § 4-240-070 Maintenance of records.

4-240-070 Maintenance of records. (a) LeadsOnline Electronic reporting – Required – Exception. At the time of each transaction, each licensee under this chapter shall enter into an accessible computer database, using the LeadsOnline electronic reporting form, an accurate description in English of (i) the goods, articles or things pawned or pledged; (ii) the amount of money loaned on such items;(iii) the time such items were pawned or pledged; (iv) the rate of interest to be paid on the loan; and (v) the name and address of the person pawning or pledging the above mentioned items. Provided, however, that if the licensed business does not have internet access, the licensee shall seek permission and approval from the superintendent of police to use an alternative reporting system acceptable to the superintendent. No entry made in such database or other approved reporting system shall be erased., obliterated or defaced. (b) (1) Additional descriptive information – When required. In addition to the information required under subsection (a) of this section, the description of the articles described in items (i) through (iv) of this subsection (b)(1) shall include the following information: (i) Musical instruments, cameras, appliances and machines. The description of each musical instrument, camera, appliance or machine of any type shall include: the brand name; the model number, if available; any serial number or other identification number installed by the manufacturer; and a description of every other identifying marking, such as an inscription, a social security number, a name, a nickname or an address, appearing on the item. (ii) Watches. The description of each watch shall include: the brand name, model number, if available; a description of the metal or metals of its composition; a description of the band, if any; a description of the face by number, color, cut, shape and type of stone or stones, if any; and a description of any inscriptions appearing on the watch. In addition, each watch shall be photographed in color. (iii) Jewelry. The description of each item of jewelry shall include: the type of jewelry; a description of the metal or metals of its composition; the weight of said metal or metals; the type, shape and cut of each stone; and a description of all inscriptions. Each ring shall also be identified by ring size. In addition, each item of jewelry shall be photographed in color. (iv) Cell phones and other mobile communication devices. The description of each cell phone or other wireless communication device shall include the Mobile Equipment Identifier (MEID), International Mobile Station Equipment Identity (IMEI) or Electronic Serial Number (ESN) of the wireless communication device. (2) Receipt signed by the person pawning or pledging secondhand property – When required. In the case of jewelry, watches, other precious metals or precious stones, cell phones or other wireless communication devices, the record required under this subsection (b) shall also contain a receipt, signed under penalty of law by the person who pawns or pledges such secondhand property, which (i) describes such article of property being pawned or pledged, including its weight in the case of jewelry, watches or other precious metals or precious stones, and its Mobile Equipment Identifier (MEID), International Mobile Station Equipment Identity (IMEI) or Electronic Serial Number (ESN) in the case of cell phones or other wireless communication devices; and (ii) contains a statement indicating that the person pawning or pledging such article of property accepts the amount of money loaned thereon and the rate of interest to be paid on such loan; and (iii) contains a statement that the person pawning or pledging such article of property is of lawful age; that the driver's license number or other government-issued identification number and all other identifying information provided by the person pawning or pledging such property are true and correct; and that the person pawning or pledging such property is the lawful owner of such article of property with absolute authority to pawn or pledge such property. (3) False statements – Prohibited. It shall be unlawful for any person who pawns or pledges any jewelry, watch, other precious metal or precious stone, cell phone or other wireless communication device to submit false or fraudulent information on any receipt required under paragraph (2) of this subsection (b) to be signed by such person. (c) Description of person pawning or pledging secondhand property – Required. The description of each person who pawns or pledges any goods, articles or other things shall consist of the person's name, residence address, date of birth, social security number, weight, height and gender. If the person has no social security number, the licensee shall record this fact. (d) Identification of person pawning or pledging secondhand property – Required. Every pawnbroker shall require two forms of identification to be shown to the pawnbroker by each person pledging or pawning any goods, articles or other things to the pawnbroker. At least one of the two forms of identification must list the person's name and residence address. Except as provided in subsection (e) of this section, at least one of the two forms of identification must be a photographic identification issued by a federal, state or local governmental entity. Forms of identification may include, but are not limited to: a state driver's license, a state identification card, a passport, a military identification card, or a credit card or utility bill. (e) Photograph of customer by licensee – When required. If the customer does not have a photographic identification card issued by a federal, state or local governmental entity, the licensee shall photograph the customer. The photograph shall be in color. On the reverse side of the photograph the licensee shall record the customer's name, residence address, date of birth, social security number, gender, height and weight. If the customer has no social security number, the licensee shall record this fact. Two forms of identification shall also be required. At least one of the two forms of identification shall list the person's name, date of birth and residence address. (f) Purchases of secondhand property by the licensee – Recordkeeping required. Whenever any licensee under this chapter shall buy any article of secondhand property from a customer, such purchase shall be recorded in the same manner as a pledge and said record shall show all information required for a pawn or pledge. (Added Coun. J. 12-9-92, p. 25465; Amend Coun. J. 2-26-97, p. 40141; Amend Coun. J. 9-8-10, p. 99259, § 7; Amend Coun. J. 3-14-12, p. 22804, § 1; Amend Coun. J. 5-9-12, p. 27485, § 113; Amend Coun. J. 7-30-14, p. 85719, § 3)

Municipal Code of Chicago § 4-240-075 Disassembling watches or jewelry.

4-240-075 Disassembling watches or jewelry. It shall be unlawful for any licensee under this chapter to advise or require any person pawning or pledging any watch or jewelry to disassemble such watch or jewelry or to remove any precious stone or gem from such watch or jewelry or to make such disassembly or removal a condition of acceptance by the licensee of the watch or jewelry being pawned or pledged. As used in this section, the term "licensee" means any person that holds or is required to hold a license under this Chapter 4-240 or any agent or employee thereof. (Added Coun. J. 9-8-10, p. 99259, § 8)

Municipal Code of Chicago § 4-240-080 Report to police.

4-240-080 Report to police. (a) It shall be the duty of every licensee under this chapter to prepare and deliver, using the LeadsOnline electronic reporting form, to a location or locations designated by the superintendent of police every day, before the hour of twelve noon, a legible and correct copy of the information required under Section 4-240-070 of all personal property and other valuable things received on deposit, and all articles of secondhand property purchased during the preceding day, setting forth the hour when received and the description of the person pledging or selling such items. Provided. however, that if the licensed business does not have internet access, the licensee can seek permission from the superintendent of police to use an alternative reporting system acceptable to the superintendent. (b) The photographs required under Section 4-240-070 shall be included in the records delivered to the superintendent of police. (Added Coun. J. 12-9-92, p. 25465; Amend Coun. J. 2-26-97, p. 40141; Amend Coun. J. 5-9-12, p. 27485, § 115)

Municipal Code of Chicago § 4-240-090 Inspection of records.

4-240-090 Inspection of records. The said book, the photographs required under Section 4-240-070, and every article or other thing of value pawned or pledged, or any article of secondhand property obtained through purchase or exchange, shall at all times during the licensee's business hours to be open to the inspection by the Commissioner or any member of the police force or any investigator of the Department of Business Affairs and Consumer Protection. (Added Coun. J. 12-9-92, p. 25465; Amend Coun. J. 2-26-97, p. 40141; Amend Coun. J. 7-27-05, p. 53211, § 1; Amend Coun. J. 11-19-08, p. 47220, Art. V, § 5; Amend Coun. J. 11-21-17, p. 61755, Art. VII, § 13)

Municipal Code of Chicago § 4-240-100 Memorandum to pledger.

4-240-100 Memorandum to pledger. Every such licensee shall at the time of each loan deliver to the person pawning or pledging any goods, article or thing, a memorandum or note signed by him containing the substance of the entry made in his book as required by this chapter; and no charge shall be made or received by any pawnbroker or loanbroker or keeper of a loan office for any such entry, memorandum or note. (Added Coun. J. 12-9-92, p. 25465)

Municipal Code of Chicago § 4-240-110 Exhibition of pledged article.

4-240-110 Exhibition of pledged article. Every such licensee shall, during business hours, upon the request of any pledger presenting the memorandum herein provided for, or upon the request of any assignee or transferee thereof presenting such memorandum, exhibit to such person the article pledged and described in such memorandum. Each article pledged shall have attached thereto a tag with the pledge number, the time when said pledge was obtained, and the amount of said pledge. (Added Coun. J. 12-9-92, p. 25465)

Municipal Code of Chicago § 4-240-120 Display of weapons restricted.

4-240-120 Display of weapons restricted. No such licensee shall show, display or exhibit any bowie knife, dirk or other weapon of like character which can be concealed on the person, in any show window or in or on any premises immediately abutting upon any public way in the city in such a way that the same may be seen from such public way. (Added Coun. J. 12-9-92, p. 25465; Amend Coun. J. 9-11-13, p. 59869, § 2)

Municipal Code of Chicago § 4-240-125 Removal of identifying marks prohibited.

4-240-125 Removal of identifying marks prohibited. No licensee shall remove, alter or obliterate any manufacturer's make, model, or serial number, personal identification number, or identifying marks engraved or etched upon an item of personal property that was purchased or received in pledge until such time that the licensee becomes the legal owner of the property. In addition, an item shall not be accepted for pledge or purchase where the manufacturer's make, model, or serial number, personal identification number or identifying marks engraved or etched upon an item of personal property has been removed, altered or obliterated. (Amend Coun. J. 2-26-97, p. 40141)

Municipal Code of Chicago § 4-240-130 Hours of business.

4-240-130 Hours of business. No such licensee shall receive on deposit or pledge any personal property or other valuable thing, or shall buy any article of secondhand property, before the hour of 6:00 a.m. or after the hour of 9:00 p.m. (Added Coun. J. 12-9-92, p. 25465; Amend Coun. J. 2-26-97, p. 40141)

Municipal Code of Chicago § 4-240-140 Sales and redemptions regulated.

4-240-140 Sales and redemptions regulated. (a) No personal property received on deposit or pledge by any such licensed pawnbroker shall be sold or permitted to be redeemed or removed from the place of business of such licensed pawnbroker for the period of two business days, excluding Saturdays, Sundays and holidays, after the copy and statement to be delivered to the superintendent of police shall have been delivered as required by this chapter. (b) No personal property pawned or pledged shall be sold or disposed of by any such pawnbroker within one year from the time when the pawner or pledger shall make default in the payment of the interest on the money so advanced by such pawnbroker, unless by the written consent of such pawner or pledger. (c) No licensee shall offer or give any inducement or payment for the consent of the pawner or pledger for the early sale or disposition of personal property. (d) No article of secondhand property purchased by any such licensed pawnbroker shall be sold or removed from the place of business of such licensed pawnbroker for the period of 30 calendar days after the copy and statement to be delivered to the superintendent of police shall have been delivered as required by this chapter. (Added Coun. J. 12-9-92, p. 25465; Amend Coun. J. 2-26-97, p. 40141)

Municipal Code of Chicago § 4-240-150 Prohibited pledges or purchases.

4-240-150 Prohibited pledges or purchases. (a) No licensee under this chapter shall take or receive in pawn or pledge, for money loaned, or shall buy any property from a minor, or shall so take, receive or buy any such property, the ownership of which is in, or which is claimed by, any minor, or which may be in the possession or under the control of any minor. (b) (1) No licensee under this chapter shall take any article in pawn or buy from any person appearing to be intoxicated or under the influence of any drug, nor from any person known to be a thief or to have been convicted of theft, burglary, robbery or armed robbery, and when any person is found to be the owner of stolen property which has been pawned or bought, such property shall be returned to the owner thereof without the payment of the amount advanced by the pawnbroker thereon or any costs or charges of any kind which the pawnbroker may have placed upon the same. (2) No licensee under this chapter shall purchase or take in pawn any property which any law enforcement officer or any individual acting in behalf of a law enforcement agency explicitly represents to the licensee as being stolen or represents to the licensee such circumstances as would reasonably induce the licensee to believe that the property was stolen. (c) No licensee under this chapter shall take or receive in pawn or pledge, for money loaned, or shall buy or otherwise transfer or receive, any firearm, ammunition, stun gun or taser from any person. (d) No licensee under this chapter shall purchase, take or receive from any person in pawn or pledge, for money loaned, any catalytic converter that is not attached to a motor vehicle, or any portion of a dismantled catalytic converter that is reasonably identifiable as such. In addition to any other penalty provided by law, any person who violates this subsection (d) shall be fined not less than $1,000.00 nor more than $2,000.00 for each offense. (e) (1) No licensee under this chapter shall purchase, take or receive from any person in pawn or pledge, for money loaned, any cell phone whose make, model and serial number is identified in a stolen cell phone database. Before purchasing, taking or receiving from any person in pawn or pledge, for money loaned, any cell phone, the licensee shall check the stolen cell phone database to verify that the cell phone is not a stolen or lost cell phone, and shall record in an inventory log the date and time of such verification, the make, model and serial number of the cell phone, and a unique inventory number for each such cell phone. The licensee shall attach a sticker to the cell phone with the corresponding unique inventory number contained in the inventory log. The log and the sticker attached to the cell phone shall be made available at all reasonable times, as defined in Section 4-4-290 of this Code, to inspection by authorized personnel of the department or any member of the City's Department of Police. (2) A licensee under this chapter shall issue to any person who purchases a secondhand cell phone from the licensee a receipt, in a form provided by the commissioner, acknowledging that the cell phone is not identified, at the time of sale, in a stolen cell phone database as a stolen or lost cell phone. Such receipt shall include date and time of such sale, and the make, model and serial number of the cell phone. (3) A licensee under this chapter shall report, within a reasonable time, to the Chicago Department of Police any secondhand cell phone that is brought to the licensee for pawn or pledge, and whose make, model and serial number is identified in a stolen cell phone database. Upon request, such licensee shall surrender such cell phone to any member of the City's Department of Police, if the licensee is in possession of the cell phone. (f) No licensee under this chapter shall purchase, take or receive from any person in pawn or pledge, for money loaned, any air bag that is not attached to a motor vehicle, or any portion of a dismantled air bag that is reasonably identifiable as such. In addition to any other penalty provided by law, any person who violates this subsection (f) shall be fined not less than $2,000.00 nor more than $4,000.00 for each offense. (Added Coun. J. 12-9-92, p. 25465; Amend Coun. J. 2-26-97, p. 40141; Amend Coun. J. 6-25-14, p. 83727, § 6; Amend Coun. J. 5-6-15, p. 108540, § 2; Amend Coun. J. 9-6-17, p. 54980, § 1; Amend Coun. J. 6-17-26, p. 45172, § 5)

Municipal Code of Chicago § 4-240-160 Employees under sixteen.

4-240-160 Employees under sixteen. No such licensee shall permit any person under the age of 16 years to take pledges in pawn for him or to purchase secondhand articles for him. (Added Coun. J. 12-9-92, p. 25465)

Municipal Code of Chicago § 4-240-165 Regulations.

4-240-165 Regulations. The commissioner of the department of business affairs and consumer protection, in consultation with the superintendent of police, is authorized to promulgate rules and regulations necessary to enforce the requirements of this chapter, including, but not limited to, rules and regulations mandating licensees to use digital cameras to photograph watches and jewelry, to store and maintain required photographic images in an electronic database maintained by the licensee, to transmit required photographic images to appropriate city officials for posting on the City of Chicago website, to use standardized form(s) provided by the department to maintain required records, and to comply with other reasonable and warranted record-keeping requirements designed to assist in the identification of stolen property. (Added Coun. J. 9-8-10, p. 99259, § 9)

Municipal Code of Chicago § 4-240-170 Violation - Penalty.

4-240-170 Violation - Penalty. (a) Any person violating any of the provisions of this chapter or any rule promulgated thereunder shall be fined not less than $2,000.00 nor more than $10,000.00 for each offense. Each violation in regard to a separate transaction shall constitute a separate and distinct offense to which a separate fine shall apply. Where the provisions of this chapter impose a requirement on a licensee, an unlicensed person engaged in the activity shall be subject to the same penalty for violating the requirement. (b) In addition to any other penalty provided by law, any violation of this chapter or rule promulgated thereunder may result in license suspension or revocation in accordance with the requirements of Section 4-4-280 of this Code. If a person commits two or more violations within any 24-month period of Section 4-240-150, the Commissioner shall revoke that person's licenses. For purposes of this section: (1) "licenses" includes any and all licenses issued by the City of Chicago to engage in business operations at the location at which the violations occurred; (2) multiple offenses occurring on the same date shall be deemed a single violation while offenses occurring on separate dates shall be deemed separate violations; and (3) a "violation" may include a finding of liability or a finding sustaining the offense or offenses charged in the same or in any contemporaneous proceeding or evidence of any previously resolved final disposition against the licensee on a charge brought pursuant to any of the provisions of this chapter including, but not limited to, any finding of liability after adjudication on the merits, any default finding of liability, any uncontested finding of liability, any negotiated pre-hearing settlement of the charge, and any voluntary payment of the fine corresponding to the charge. Any revocation hearing shall be limited to the issue of whether the licensee's record and the resolution of any pending charges in the same or contemporaneous proceedings, if applicable, accurately reflect the existence of a sufficient number of violations to support the revocation decision. The licensee shall not be permitted to challenge the previously resolved violations themselves, nor any underlying facts asserted or determined therein. (c) When any license issued pursuant to this chapter is revoked for any cause, no pawnbroker license shall be granted to such person for any premises for a period of four years thereafter. In the case of a legal entity, all persons who have a substantial ownership or controlling interest in the entity shall be subject to the prohibition in this subsection. (d) When a pawnbroker license under this chapter is revoked for any cause, no pawnbroker license under this chapter shall be granted to any person for a period of one year thereafter for the premises described in such revoked license unless the revocation order was entered as to the licensee only. (Added Coun. J. 12-9-92, p. 25465; Amend Coun. J. 2-26-97, p. 40141; Amend Coun. J. 9-8-10, p. 99259, § 10; Amend Coun. J. 5-9-12, p. 27485, § 115; Amend Coun. J. 9-6-17, p. 54980, § 1; Amend Coun. J. 1-26-22, p. 43399, § 1)

Source: City of Chicago, Municipal Code of Chicago (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2635851Fetched: 10/24/2026