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