AB 779

This bill allows pawnbrokers to send certain notices by electronic mail, text

message, or other means.

Under current law, pawnbrokers receive security for loans to customers by

taking possession of the customer's personal property. If the customer defaults on

the loan, the pawnbroker may sell the personal property, subject to certain

conditions. At least 30 days before selling the personal property, the pawnbroker

must send to the customer, by registered mail, a notice of the contemplated sale,

which notice must also state the amount due on the loan. If the sale is completed and

results in a surplus, the pawnbroker must send to the customer, by registered mail,

notice of the surplus from the sale. These provisions, however, do not apply if the

pawnbroker is a "licensed lender," which is a lender, other than a financial

institution, licensed by the Department of Financial Institutions to assess a greater

than 18 percent finance charge for a consumer loan.

This bill allows pawnbrokers to send notices of sale and notices of surplus by

means other than registered mail. Under the bill, these notices may be sent by

electronic mail or text message if the customer agrees to receive notices by electronic

mail or text message, or they may be sent by any other method agreed to by the

pawnbroker and the customer.