Canada    FinTech Guide    Chapter 12    Germany

12. Online-Pawning
Germany  Germany

There are no social or political reservations with regard to online pawning services.

Legal Affairs

Undertakings engaged in pawnbroking, where they conduct this business by granting loans against pledges, are not deemed to be credit institutions, but need a license according to section 34 of the industrial code (Gewerbeordnung –“GewO”).

The remuneration and interest the pawnbroker can demand is regulated in the Pfandleiherverordnung (PfandlV). According to the PfandlV the pawnbroker can demand 1 % interest per month, a remuneration, which can be freely negotiated for loans above 300,00 Euros, and the necessary costs for the exploitation of the pawn.

The costs for a licence are about 400 Euros.

The provider of the pawn service has to be reliable also with regard to his financial situation.

Economic Conditions

The market online pawnbroking is a niche market in Germany.

Contributing Authors

Schalast Rechtsanwälte mbB

Andreas Walter
Frankfurt, Germany

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Chapter Index:

1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 May 2018