VIC Business Licensing Authority Rejected Secondhand Dealer and Pawnbrokers Licence

[usedcarpawn]

I have applied to the Business Licensing Authority for a Secondhand dealer and Pawnbrokers License. I intend to Pawn used cars. The Act states that Section 23(1a) (a pawnbroker must not receive a motor car as goods in pawn) I imagine this is because they are not Licensed Motor Car Traders. I am a licensed motor car trader. Then in the same act(second hand dealers and pawnbrokers act) section 4(f) it states Nothing in this act applies to- A licensed motor car trader.

So from this I imagine I would have no problem. I applied to the Business Licensing Authority (BLA) for a Pawnbrokers license stating that I was going to pawn motor cars as I am a Licensed Motor Car trader. BLA are telling me that I cannot pawn motor cars as it states in the Act, I have politely continued to send them sections of the Act that clearly state that nothing in the Act applies to a licensed Motor Car trader, and they are still saying I cannot do it.

Any opinions or idea's on what I can do under commercial law from here would be much appreciated.

 

[Sarah J]

Hi usedcarpawn,

From a reading of Section 4(f) of the Second Hand Dealers and Pawnbrokers Act ("Act"), I understand it to mean that the Act does not apply to the extent that a licensed motor vehicle dealer may perform functions in relation to motor vehicles permitted under the Motor Car Traders Act.

In other words, the Act shall not intervene, override or otherwise interfere with the Motor Car Traders Act.

Any actions outside of what is covered by the Motor Car Traders Act (ie. pawning used motor vehicles) shall fall under the Act. Therefore, even if you are a licensed motor vehicle dealer, this special status will have no bearing on what you are allowed and not allowed to do under the Act (in relation to second-hand items and pawning), unless and to the extent that it is permitted by the Motor Car Traders Act.

If you are still unclear, you may contact Consumer Affairs Victoria or the Business Licensing Authority directly and ask them to explain the application of Section 4(f).

Hope this helps.

 

[usedcarpawn]

Hi usedcarpawn,

From a reading of Section 4(f) of the Second Hand Dealers and Pawnbrokers Act ("Act"), I understand it to mean that the Act does not apply to the extent that a licensed motor vehicle dealer may perform functions in relation to motor vehicles permitted under the Motor Car Traders Act.

In other words, the Act shall not intervene, override or otherwise interfere with the Motor Car Traders Act.

Any actions outside of what is covered by the Motor Car Traders Act (ie. pawning used motor vehicles) shall fall under the Act. Therefore, even if you are a licensed motor vehicle dealer, this special status will have no bearing on what you are allowed and not allowed to do under the Act (in relation to second-hand items and pawning), unless and to the extent that it is permitted by the Motor Car Traders Act.

If you are still unclear, you may contact Consumer Affairs Victoria or the Business Licensing Authority directly and ask them to explain the application of Section 4(f).

Hope this helps.

Thanks Sarah for your input. I have tried phoning and emailing Business licensing and they only quote me section 231(a)
(a pawnbroker must not receive a motor car from a person as goods in pawn)

The reason I imagine this is in the Act, is that unless you are a Licensed Motor Car Trader, you cannot deal in motor vehicles, that makes sense.

But in my case, I am a Licensed Motor Car trader, and then section 4(f) states, nothing in this act applies to ; a licensed motor car trader
So I naturally think, the reason for not being able to pawn cars in the pawnbrokers act is, that no one can pawn buy or sell motor cars unless they are a licensed motor car traders

If I disagree with Licensing, what can I do?

 

[John R]

Hi @usedcarpawn
From a practical perspective, have you been able to identify other businesses in Victoria operating in the same manner that you intend to?
If yes, can you identify from their websites, etc. what licenses they operate under?

 

[usedcarpawn]

The other business's are running in S.A. QLD, and NSW

 

[Sarah J]

Hi usedcarpawn,

I would suggest lodging a complaint with Consumer Affairs Victoria against the decision of the Business Licensing Authority: Lodging a Complaint.

It might be worthwhile calling these other companies up, even if they are in other states, and asking them under which provision/legislation/license they are operating. You can then compare the provisions to that in Victoria. Perhaps the legislation in Victoria is the same, or has the same meaning, or perhaps it is more restrictive.

Again, my reading of the provision (Section 4(f)) is that it is not a blanket exception for licensed motor car traders. Rather, its purpose is to not intervene or override existing provisions in the Motor Car Traders Act ("MCTA"). Otherwise, the rest of that sentence would not be relevant and the provision could just end with "nothing in this Act shall apply to licensed motor car traders" rather than go on and mention the MCTA.