The practice of buying pawn tickets has been going on for years if not decades. According to the enforcement agency, The Moneylenders’ and pawnbrokers’ division of the Ministry of Urban Wellbeing, Housing and Local Government, it is illegal for anyone to purchase the pawn tickets.
Despite the law and book penalties of a fine of not more than RM20,000 or imprisonment of not more than 12 years the practice goes on with impunity and has in fact become rampant. The total disregard for the law is brought about by the law enforcement agency itself. The pawn ticket buyers have become so brave that they openly advertise themselves as such on their signboards.
The pawn ticket buyers are normally located beside or very close to pawnshops. That the enforcement agency does not seem to know of their existence is a wonder and speaks volumes of pro-active enforcement of the law.
The Pawnbrokers Act 1972 allows third parties to redeem pledges unless the pawner has reported the loss of his pawn ticket or that someone had obtained his pawn ticket through fraudulent means.
This illegal practice can therefore be stopped by making it illegal for pawnshops to deliver the pledges to the third parties.
We call upon the minister of Urban Wellbeing, Housing and Local Government to use his power of making regulations to regulate that pawnshops are not to deliver the pawned item or pledges to anyone other than the person named in the pawn ticket, or the estate of that person.
We also urge the MACC to investigate why this practice of buying pawn tickets which is illegal has been going on with impunity such that it has made the pawn ticket buyers so bold as to openly advertise their services.
Press statement, 19 June 2015