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Bravo’s Compliance with 2016’s California Regulations | New Features & Full Automation
First, hats off to the largest rate increase in California history!
The California Department of Justice will be enacting and requiring the most comprehensive regulatory requirements for pawnbrokers starting Jan 1st 2016.
Bravo’s team looks at these new regulation requirements as opportunities in creating the most efficient transaction possible for our customers. As a former pawnshop operator, the experience at the counter is what the customer cares most about and if you can minimize the disruption of the customer experience and possibly even enhance it, you have created a killer application.
Many California Pawnbrokers are still transacting with handwritten pawn tickets. The manual effort to keep up with the new regulation requirements will take between 5 – 10 minutes per transaction. Computing power, and the simplicity that comes with it, will now dominate the success of the Brick & Mortar operation. Only the cloud providers have the system infrastructure, computing resources, and database architecture, to truly automate California’s new requirements.
Law Enforcement and Reporting
California Pawnbrokers and Department of Justice – DOJ – will have the first National reporting systems used for the pawn industry in the United States. I preface this as National because California by itself is the same size in population and GDP as the country of France. The DOJ in California also carries the biggest law enforcement badge in the State of California. So there is no messing around as government has inched its way into the everyday details of pawnbrokers’ transactions.
We believe that for the first couple of years, the DOJ will have some forgiveness. That’s just a guess of course. This is one of the most dramatic changes in government oversight on business ever. The DOJ will be making adjustments since this will be a very frustrating and a convoluted period for pawnbrokers. But over time, as all California businesses know, the California law is the law and the Department of Justice has the resources to enforce it.
We believe the DOJ will be taking an active oversight role over time, much like the ATF, except with the DOJ they will have real time data access to every customer and transaction.
Every item entered into the DOJ will have to be correct. Not only will pawnbrokers be responsible for what they describe on the Pawn Ticket to the customer, but now there is a deeper legal responsibility that has been initiated directly from the government. This is really not much of a change from a pawnbrokers legal reporting perspective, but now there is a mechanism and government body that will keep check with their unlimited computing resources and legal authority.
Transactional Interest & Fees
It has always been a challenge in California interpreting the Pawnbrokers law. The California Pawnbrokers have been charging different rates for a millennium. When you get 2 pawnbrokers with 2 lawyers discussing the new regulatory rates and fees, you end up getting 4 different opinions.
The difference today for California Pawnbrokers is that the DOJ will interpret the law their way and legality will be determined by the California Courts.
Follow the big money and class action lawsuits that followed the payday industry. If you are a big pawnbroker, you are the biggest target, but collectively now the entire industry will be under the microscope.
But, with the consolidation of the data by the DOJ, and the data being in the custody of the government, it now becomes accessible to the public and a source of opportunity for large Class Action Law Firms.
Bravo’s Special California Features
- Integrated Digital Thumb Print and Signature Pad
- New User Interface
- New Regulatory Compliant Business Flow
- Seamless NCIC – Bravo Category Integration
- New California Rates and Fees
We believe in powerful computing solutions that are simple and you deserve the highest return on investment when paying for your computing services.
There is no better time to learn about Bravo’s Pawnbroker operating solutions. Contact us at 888-407-6287 or click here to request a demo.
We want to thank CAPA, Sam Shocket, and Robert Verhoeff for their help with DOJ compliance.