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Delaware State Police


Pawnbrokers, Secondhand Dealers, & Scrap Metal Processors



The licensure of a Pawnbroker, Secondhand Dealer or Scrap Metal Processor (PBSS) is governed by Title 24 Chapter 23 of the Delaware Code and the Rules and Regulations. For licensing purposes the definitions are as follows:

  • Pawnbroker – the business of lending money on the deposit or pledge of personal property or other valuable things; the purchase of personal property with an expressed or implied agreement or understanding to sell it back at a subsequent time at a stipulated price; or to lend money upon goods, wares or merchandise pledged, stored or deposited as collateral security.
  • Secondhand Dealer – the business includes any volume of selling or receiving previously owned, used, rented or leased tangible personal property.
  • Scrap Metal Processor – the business of selling or receiving any worn out or discarded metal, old iron, used plumbing fixtures, other metal, automobiles, automobile parts, chain, copper, lead, brass or other parts of machinery.

An applicant applying for a pawnbroker, secondhand dealer or scrap metal processor license must meet and maintain the following qualifications:

  1. Must be at least 18 years of age.
  2. Must submit a current valid Delaware business license issued by the Delaware Division of Revenue.
  3. Must notify the Professional Licensing, within ten (10) days, of any change of address, phone number, email address or contact person for the business.
  4. Must not have any pending criminal charges.
  5. Must not have no felony convictions within 5 years of application date.
  6. Must have no misdemeanor convictions involving theft-related offenses, or moral turpitude within 3 years of application.

New Application
Each business who is obtaining their initial license must complete a PBSS application. Initial applications can be submitted at any time during the calendar year. Licenses must be displayed in the building address listed on the application.

Leads ONLINE
Per Del. C. 24 § 2313, all Pawnbrokers, Secondhand Dealers, and Scrap Metal Processors operating in Delaware are required to record all transactions on a specifically designated electronic tracking system and are financially responsible for paying an annual user fee. The Delaware State Police utilizes Leads ONLINE. Please do not register with Leads ONLINE until your license has been approved and received.

New PBSS License Fee

$280.00 total ($50.00 New License Fee & $230.00 Leads ONLINE Fee)

Step #1
Complete the New Application using the link below (PBSS New/Renewal License Application). Each business who is obtaining their initial license must complete a PBSS application. An individual who is applying must complete the PBSS Applicant application, page 2. If the business is a partnership or a corporation, each partner/corporate officer must complete the PBSS Partner/Corporate Officer application, page 3.

PBSS New/Renewal Application

Step #2
Include a printed copy of the company’s valid State of Delaware – Division of Revenue Business License. You can search for a business license using the link below.

https://revenue.delaware.gov/business-license-search/

Step #3 – $50,000 fire insurance policy Pawnbrokers only (If you are applying only as a Secondhand Dealer and/or Scrap Metal Processor – proceed to Step #4).

Pawnbroker agencies must maintain and submit a current copy of a $50,000 fire insurance policy. Please have your insurance agency use the below address for a certificate holder:

Delaware State Police
Professional Licensing
P.O. Box 430
Dover, DE 19903

Note – please do not use this address to mail the Agency Application, etc.

Step #4
Include Payment for your License & Leads ONLINE fees which can be paid by company check or credit card – consult the Agency Application for further direction. Please include the Licensing Fee of $280.00* ($50.00 – application fee & $230.00 Leads ONLINE fee) paid by company check, certified check, or money order made payable to Delaware State Police.

*Please do not separate payments/checks – the total amount is $280.00

Step #5
Mail your Application, Business License Copy, Fire Insurance Copy (Pawn Brokers only) & $280.00 payment to:

Delaware State Police
Professional Licensing / PBSS
600 South Bay Road
Suite 1B
Dover, DE 19901

Step #6
Register with Leads ONLINE when your License is approved & received.

www.leadsonline.com

Renewal Application
Each business obtaining their initial license must complete a PBSS Renewal Application. PBSS Licenses expire annually on December 31st – Agencies are strongly encouraged to Renew Agency Licenses between September – November to avoid delays in renewing.  Licenses must be displayed in the building address listed on the application.

Leads ONLINE
Per Del. C. 24 § 2313, all Pawnbrokers, Secondhand Dealers, and Scrap Metal Processors operating in Delaware are required to record all transactions on a specifically designated electronic tracking system and are financially responsible for paying an annual user fee. The Delaware State Police utilize Leads ONLINE. All PBSS Agencies licensed in Delaware must be registered with Leads ONLINE – this registration will be verified as part of the Renewal process.

Renewal  PBSS License Fee

$280.00 total ($50.00 New License Fee & $230.00 Leads ONLINE Fee)

Step #1
Complete the Renewal Application using the link below (PBSS New/Renewal License Application). Each business who is obtaining their Renewal license must complete a PBSS application. An individual who is applying must complete the PBSS Applicant application, page 2. If the business is a partnership or a corporation, each partner/corporate officer must complete the PBSS Partner/Corporate Officer application, page 3.

PBSS New/Renewal Application

Step #2
Include a copy of the company’s valid State of Delaware – Division of Revenue Business License. You can search for a business license using the link below. Please print a copy of the Business License verification.

https://revenue.delaware.gov/business-license-search/

Step #3 – $50,000 fire insurance policy Pawnbrokers only (If you are applying only as a Secondhand Dealer and/or Scrap Metal Processor – proceed to Step #4).

Pawnbroker agencies must maintain and submit a current copy of a $50,000 fire insurance policy. Please have your insurance agency use the below address for a certificate holder:

Delaware State Police
Professional Licensing
P.O. Box 430
Dover, DE 19903

Note – please do not use this address to mail the Agency Application, etc.

Step #4
Include Payment for your License & Leads ONLINE fees which can be paid by company check or credit card – please consult the Agency Application for further direction. Please include the Licensing Fee of $280.00* ($50.00 – application fee & $230.00 Leads ONLINE fee) paid by company check, certified check, or money order made payable to Delaware State Police.

*Please do not separate payments/checks – the total amount is $280.00

Step #5
Mail your Application, Business License Copy, Fire Insurance Copy (Pawn Brokers only) & $280.00 payment to:

Delaware State Police
Professional Licensing / PBSS
600 South Bay Road
Suite 1B
Dover, DE 19901

Step #6
Confirm the Agency is Registered with Leads ONLINE.

www.leadsonline.com

Leads ONLINE
Per Del. C. 24 § 2313, all Pawnbrokers, Secondhand Dealers, and Scrap Metal Processors (PBSS) operating in Delaware are required to record all transactions on a specifically designated electronic tracking system and are financially responsible for paying an annual user fee. The Delaware State Police utilize Leads ONLINE and conduct unannounced inspections at any licensed PBSS Agency.

 

For further information on mandatory reporting requirements, please reference:

https://delcode.delaware.gov/title24/c023/sc01/index.html

 

For more information on Leads ONLINE, including technical assistance:

https://www.leadsonline.com/main/index.php

PBSS Agencies who have any of the following changes to their License must notify Professional Licensing with ten (10) business days:

  • Ownership change – PBSS agencies are not permitted to operate until the new agency is fully licensed – PBSS Licenses are non-transferable.
  • Designation of a new corporate officer and/or office applicant.
  • Change in physical address of the agency.
  • Change in phone number contact.
  • Change in email contact.

contact: dsp-prolicense@delaware.gov  – subject title – PBSS Change

CHAPTER 23. Pawnbrokers, Secondhand Dealers and Scrap Metal Processors

Subchapter I. General Provisions

Subchapter II. Licensing

Delaware Code

2300 Pawnbrokers, Secondhand Dealers and Scrap Metal Processors

Rules and Regulations

Recent Law changes

HOUSE BILL NO. 296 – April 28, 2022

SYNOPSIS

All three counties in Delaware have been plagued with thefts of catalytic converters, which contain precious metals having significant monetary value in the scrap metal industry. This Act adds catalytic converters to the list of items for which scrap metal processors shall create a record and provide information when acquired. Amending Section 24(b)(1) to specifically include catalytic converters as items that the industries regulated by Chapter 23 must report will enhance enforcement of this Chapter and assist law enforcement by providing a mechanism to follow-up on thefts of converters and to obtain solvability factors in the ever-growing trend associated with thefts of converters.

HB296

HOUSE BILL NO. 157 – January 1, 2024

SYNOPSIS

This Act prohibits a pawnbroker, secondhand dealer, or scrap metal processor from purchasing or otherwise acquiring a gift card or other item in its original packaging unless the individual offering the item for sale produces a receipt or proof of purchase at the time of transaction. The Department of Homeland Security or its designee may seize an item found in violation of Chapter 23, Title 24 for a period of 30 days to allow the pawnbroker, secondhand dealer, or scrap metal processor an opportunity to provide a receipt or proof of ownership.

HB157


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