E20: The Law of Pawn with Wayne Babovich

Pawn Leaders

Dr. Wayne Babovich practiced law for almost 40 years before retiring. He now teaches and lectures on a regular basis and has lectured in Europe, Canada, and Australia and throughout the United States. Wayne holds a B.A. degree from Louisiana State University in Baton Rouge, an MS degree and a Ph.D. in Urban Planning from the University of New Orleans and a Juris Doctor degree from the University of Houston. He has published and lectured in the area of pawnbroking for over 30 years, at various pawn conventions. He drafted the original legislation which formed the basis for the 1993 Louisiana Pawn Shop Act adopted by the Louisiana legislature.

[04:58] Wayne shares an experience he had with a sheriff at a meet and greets hosted by the Louisiana Pawnbrokers Association

[06:21] As a pawnbroker, you have to balance between being stern and being civil

[06:47] Wayne talks about collating a book regarding the pawn business after realizing that pawnbrokers were unaware of the laws surrounding the business

[07:39] In 1993, after the Louisiana Pawn Shop Act was passed, Wayne put together the federal laws governing pawn shops

[09:49] Not knowing the laws is no longer an excuse

[10:55] Bankruptcy attorneys do not have a concept of the rights of pawnshops

[11:10] “Pledged items or pawned items are immune from bankruptcy.”

[11:37] In the book, there is an entire chapter on how to fill out a form

[12:39] Wayne gives the history of notices

[14:32] “You put that stack of notices at your window, and you make sure everybody gets one…Do not ask them to sign it.”

[15:29] Soldiers and Sailors Relief Act is another law that many pawnbrokers are still unaware of

[16:23] There have been a couple of cases with Rent-to-Own and Payday Loans

[19:15] There are many grey areas to know for certain which laws are in place

[20:04] Wayne suggests the following to help pawnbrokers stay away from any problems with the law:

• join the NPA to get support from other members
• join a local pawn association in your community
• act in good faith
• keep a record of training and procedures

[22:01] “When ATF sees you really doing it right, you’re halfway home.”

[24:43] “I think you’re not going to see, under the Trump administration, the ATF going overboard.”

[27:05] Use your common sense when making transactions, especially with guns

[33:29] The 3 biggest mistakes pawnbrokers are making as it relates to the law:

• Not carefully develop a relationship with their community
• Not keeping a paper trail
• Not joining their local association or the NPA

[35:14] Visit the Law of Pawn website and buy a copy of the book. Also, feel free to call him at 504-283-9353