Pawnbroker Pawn Shop Software for Vermont
9 V.S.A. §3867 • 5% / 3% Tiered Interest • 6-Month Minimum Hold

9 V.S.A. §3867 — Tiered Interest Rate Structure

9 V.S.A. §3867 establishes Vermont's unique two-tier interest cap:

• Loans not exceeding $50.00: Maximum 5% per month or fraction of a month
• Loans exceeding $50.00: Maximum 3% per month on the entire loan amount
• Minimum charge: No charge less than $0.15 on any loan or pledge

You can configure PPSS to apply the correct tier based on loan amount. Enter $75 — software calculates 3% monthly. Enter $50 — software calculates 5% monthly. No manual tier selection. You are responsible for verifying that the configured rates match current legal requirements.

9 V.S.A. §3868 — 6-Month Minimum Hold Period

9 V.S.A. §3868 requires Vermont pawnbrokers to hold pawned or pledged property for six months (180 days) without redemption before sale.

• You can configure PPSS to default to 180-day maturity
• The software can flag items approaching forfeiture
• Surplus proceeds: PPSS can calculate amount due to pawnor after deducting loan + interest

PPSS helps you track the 6-month hold period, but you are responsible for ensuring compliance with Vermont's statutory requirements.

9 V.S.A. §3865 — Enhanced Recordkeeping Requirements

9 V.S.A. §3865(a) applies when a pawnbroker makes loans totaling over $2,500 in a calendar year. When this threshold is crossed, enhanced recordkeeping applies.

Required records per transaction (when threshold applies):

• Amount lent or advanced, time of transaction, applicable interest rate
• Name, current address, telephone number, and vehicle license number of the pawnor
• Legible written description AND photograph — OR — video of the items
• Photocopy of government-issued ID, if available

9 V.S.A. §3865(b) requires records be open to law enforcement inspection at all reasonable times.

PPSS Vermont Edition includes: Built-in webcam capture for photographs, video recording module, ID scanner integration, and a vehicle license number field. You are responsible for knowing when the $2,500 threshold applies and for capturing the required information.

9 V.S.A. §3862 & §3863 — Town-Issued Licenses & $500 Bond

9 V.S.A. §3862: Vermont pawnbrokers are licensed at the municipal level by selectboard members (towns) or aldermen (cities). License fees are $15 annually (9 V.S.A. §3863) and a $500 bond is required.

PPSS is a recordkeeping tool only. The software does not track licenses, bonds, or renewal dates. You are solely responsible for obtaining and maintaining your town-issued license and $500 bond as required by law.

9 V.S.A. §3870 — Transactions with Minors

9 V.S.A. §3870: Vermont pawnbrokers shall not accept a pledge or article of personal property offered by a person under 18 years of age without written authority of the parents or guardians.

PPSS includes a date of birth field for customer records. You are responsible for verifying age and obtaining and storing parental written authority when required. The software does not prevent transactions with minors; you must implement your own procedures.

9 V.S.A. §3866 — Pawn Tickets & Lost Ticket Procedure

9 V.S.A. §3866 requires pawnbrokers to deliver a memorandum or note (pawn ticket) at time of loan containing the substance of §3865 records. No charge may be made for the entry, memorandum, or note.

PPSS prints customizable pawn tickets on plain paper. You can configure the ticket layout to include the required information. The software includes a lost ticket feature that can create stop tickets and flag original tickets as invalid.

9 V.S.A. §3861 — Pawnbroker Definition Includes Furniture Storage Warehouses

9 V.S.A. §3861 defines "pawnbroker" to include any person doing business as furniture storage warehousepersons loaning and advancing money upon goods, wares, or merchandise pledged as collateral.

PPSS includes transaction types that can be configured for furniture storage operations. Track storage fees, advance amounts, and pledged furniture inventory. You determine how to classify and record these transactions.

9 V.S.A. §3871 — Penalty Schedule

9 V.S.A. §3871 establishes Vermont's penalty structure. PPSS is a recordkeeping tool that helps you organize transaction data, but you are solely responsible for compliance and avoiding penalties.

Vermont LEADS & Police Reporting

Electronic transmission included — no per-report fees. Many web-based pawn systems charge per report. PPSS includes the ability to generate and send electronic reports to LEADS Online and Vermont police departments at no additional cost.

The software can export transaction data in formats commonly used by:

• Burlington Police Department
• South Burlington Police Department
• Rutland City Police Department
• Montpelier Police Department
• Barre City Police Department
• Essex Police Department
• All Vermont municipalities using LEADS Online

PPSS and reporting: The software can export transaction data in delimited text formats. You are responsible for configuring the export to match your local agency's current requirements. PPSS does not automatically format exports for any specific Vermont agency; you must test and validate.

Military Lending Act — 36% APR Cap

The federal Military Lending Act (MLA) applies to pawn transactions with covered borrowers. The APR may not exceed 36%.

Verification of covered status is performed using the DMDC portal. Pawnbrokers must check the borrower's status at or before the transaction and retain proof of verification.

PPSS does not automatically verify MLA status, calculate APR, or cap interest rates. You may manually record DMDC confirmation numbers in transaction notes and attach screenshots or PDFs to the customer record. Interest rates are entered by you; the software performs arithmetic but does not enforce compliance.