CLANY Beats NYC Police

Hon. Judge Mitchell J. Danziger Announces his Verdict

The court hearing re: the City’s application for a stay of the trial court’s order finding the comprehensive aspects of the City’s electronic reporting scheme, including the reporting to a third party vendor, denied the application.

The matter goes next to the Court of Appeals, which is the highest court in NYS.



Read more:

https://law.justia.com/cases/new-york/appellate-division-first-department/2017/303901-14-2787.html

CLICK HERE to Download the PDF Decision issued by the Supreme Court of the State of New York

New Board Elected

CLANY is proud to announce the nomination and election of a new board.

President David Kaminsky of EZ Pawn Corp

Vice President Eric Modell Of Modells Collateral Pawnshop

Treasurer Jason Wienger of Paridise Pawnbrokers

Secretary Blaine Messinger of NY Pawnbrokers

Sargent at Arms Brian Cabrera 5 Borough Pawn

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The History of CLANY

Originally called the Pawnbrokers Association of the City of New York.

The pawnbroker association was first formed in 1902 to serve the needs of the increasing number of pawnshops in the City of New York. In the early part of the 20th century there were over 300 licensed pawnbrokers in Brooklyn alone, a borough in New York City.  Since its inception, the association has worked diligently to protect and defend the rights of all pawnbrokers who provide such an essential financial service to the people of New York.

During the early part of this century many pawnbrokers retired as their children opted for more glamorous opportunities.  Causing the dwindling numbers of pawnbrokers from the 50s thru the 70s.

Throughout the 1970’s bank interest rates sky rocketed to over 24% annually while pawnshops could not legally raise the state controlled interest rates.  The legal state charges prior to 1976 where as follows:   A pawn contract was written for one year, if a loan was under 100 dollars it was 3% per month for the first 6 months then 2% for the last 6 months.  If a loan was 100 or above it was 2% for the first 6 months then 1% for the last six months.

Without alternate income sources many pawnshop owners closed and went out of business during this period.  Pawnbroker membership and licenses in New York State dropped to an all time low.

In 1998 The association changed its name to the Collateral Loanbrokers
Association of New York (CLANY).

Here is a brief timeline on how CLANY worked with the State of New York for the rights of Pawnbrokers across the region.

COLLATERAL LOANBROKER ASSOCIATION OF NEW YORK STATE LEGISLATIVE HISTORY  

1980 Interest rate increased to 3% 1st 6 months and 2% 2nd 6 months on all loans.

1981 Ticket Service Charge for loans $0-50=$1, $50-99=$2, +$100=$3.

1982 Reduce holding period to 6 months in N.Y.C. from one year effectively increasing interest rate 1% on all loans for each month after the first 6 months.

1985 Broker allowed to purchase their pawn tickets back after 90 days.

1986 Consignment – Broker recovers loan amount and interest in auction by consignor to recover chattel where consignee wrongfully pledges merchandise without consent of consignor.

1987 Lost ticket charge of 1% of amount of loan or $5, whichever is greater.

1992 Ticket Service Charge increased to loans $0-99=$3, +$100=$5.

1994 Reduction in holding period 6 months to 4 months.

1997 Auction Sales – For loans less than $1,000 private sale offered as alternative to public auction.

2001 Purchase of 2nd hand articles (under prescribed circumstances).

2004 Ticket Service Charge increased to loans $0-99=$4, $100-499=$7, +$500=$10.

2005 Interest Rate from 3% to 4%.

2006 Continuing Education Requirement for License Renewal

2007 Pawnbrokers can BUY just as 2nd hand dealers can.

2009 NYS Supreme Court upholds right of NY Pawnbrokers to engage in second-hand operations.

 

CLANY proudly salutes our past Presidents

1953-76 David Cohen

1977-79 Roland Edelstein

1980-89 Larry Cypress

1990-2004 Gerald Modell

2005-09 Mitchell Kaminsky

2010-10 Gerald Modell

2011-2018 Eric Modell

 

 

Great News! Pawnbrokers can be licensed to buy Gold

The following amended section 47 allows Collateral Loan Brokers to buy and sell second-hand merchandise with some restriction please read carefully.

§ 47. Second-hand business. A collateral loan broker may purchase
items of personal property in accordance with this section, provided
however that a collateral loan broker shall not receive in pawn, as a
pledge or as a purchase any instrument or weapon mentioned in section
265.05 of the penal law. A collateral loan broker may purchase back any
pledge offered for sale by him or her at public auction and may
thereafter sell such pledge if the pledgor fails to redeem within ten
days or may purchase any pledge offered for sale by any other collateral
loan broker at private sale or public auction. Nothing in this article
shall prohibit a collateral loan broker from purchasing a pawn ticket
from a pledgor, his or her heirs or assigns upon the request of such
pledgor, heir or assign, ninety or more days after the item was pawned.
If the pawn ticket is sold to a collateral loan broker the pledgor, his
or her heirs or assigns shall be entitled to redeem said ticket within
ten days thereafter by tendering to the collateral loan broker the
amount paid by the collateral loan broker for the ticket. Nothing shall
prohibit the sale of new or second-hand property upon the premises where
such collateral loan business is conducted, nor the purchase of new or
second-hand property, except as otherwise expressly prohibited herein. A
person selling any item to a collateral loan broker, upon the premises
of a collateral loan broker, may cancel the transaction within five
business days, provided that the seller tenders the full purchase price,
together with a cancellation fee not to exceed ten dollars for sales
equal to or greater than five hundred dollars, seven dollars for sales
equal to or greater than one hundred dollars but less than five hundred
dollars, or four dollars for sales less than one hundred dollars. A
person selling jewelry, watches, precious stones, precious metals or
coins to a collateral loan broker shall be afforded the option of
converting the sale to a loan, provided the option is exercised within
fourteen days from the date of the sale (the loan shall be in the
principal amount of not less than eighty percent of the sale price).

A collateral loan broker engaged in the purchase or sale of
second-hand articles, other than pledges or pawn tickets, shall comply
with local laws or regulations governing dealers in second-hand
articles. A collateral loan broker engaged in the purchase of
second-hand articles shall provide the seller a receipt setting forth
the item or items purchased and the purchase price for each item.
Additionally, the receipt shall include a notice advising the seller of
the option to cancel the transaction within five business days or
convert the sale of jewelry, watches, precious stones, precious metals
and coins to a loan within fourteen days of the sale in accordance with
this section.

A collateral loan broker purchasing articles from the general public
shall display in a conspicuous place, in his or her shop, a sign
stating:

” PURSUANT TO ARTICLE 5 OF THE NEW YORK STATE GENERAL BUSINESS LAW A
COLLATERAL LOAN BROKER IS AUTHORIZED TO PROVIDE LOANS ON ITEMS PLEDGED
OR PURCHASE ITEMS OFFERED FOR SALE. YOU HAVE THE RIGHT TO USE AN ITEM AS
COLLATERAL FOR A LOAN OR SELL THE ITEM IN ACCORDANCE WITH STATE AND
LOCAL LAW. ALL SALES MAY BE CANCELLED WITHIN FIVE BUSINESS DAYS IN
ACCORDANCE WITH SAID ARTICLE 5. A SALE OF JEWELRY, WATCHES, PRECIOUS
STONES, PRECIOUS METALS OR COINS CAN BE CONVERTED TO A LOAN WITHIN 14
DAYS FROM THE DATE OF THE SALE.”

Such sign shall be made of a durable material, with letters being at
least one inch high and have a stroke of at least one-quarter inch. The
letters and background shall be of contrasting colors.