ATF Final Rule and MLA Compliance Top Pawnbroker Concerns

By Kathy Pierce, Government Relations Liaison



It has been a busy week for several federal agencies. The ATF published the final rule on firearms with attached stabilizing braces. The CFPB has noted that there is a significant increase in military identification theft. On the state legislation side, the new bills have been gravitating towards firearms, and consumer privacy.


All these topics affect pawnbrokers. How do we keep the obligations we have with State and Federal governments in line with day-to-day operations?


As I write this, I am still trying to get access to a webinar hosted by the ATF, which may or may not be available. Unfortunately, this is a common problem. Federal websites that are designed for us to use but may not be able to keep up with the traffic.


The MLA compliance is a rule that pawnbrokers must follow with every transaction. If caught writing a pawn to an active duty or dependent of active duty, the CFPB and the State AG office can void the transaction and place hefty fines on the pawnbroker. The CFPB is having some battles of its own in court, facing the legitimacy of its agency with funding. Finding an MLA non-compliant pawn will give the CFPB positive PR on why they are needed for the consumers. Do not become the poster boy for the CFPB.


Be diligent, train and re-train your staff. Ask the questions. Hi, welcome to (blank). How can I help you today? Are you active duty? Are you a dependent of anyone that is active duty? It has to be second nature when in the pawn booth.

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