Stricter regulation of pawnshops

Representatives of local governments have been drawing attention to the problem of pawnshops since last year when they issued a call to the government to address the growing crime in cities. Pawnshops in Slovakia are unregulated. They are a risky business in terms of legalising proceeds from crime; they support usury and are a pathological catalyst for further crime in the areas in which they are located. The result is a fundamental deterioration in the quality of life of residents living in their vicinity.

Said the mayor of Bratislava, Matúš Vallo:

“We’ve prepared several specific solutions regarding the operation of pawnshops. Implementing them, however, also requires legislative changes, which is why we are once again appealing to the state to carry them out as soon as possible. Because if the state does not do this, the communities living around the pawnshops will continue to suffer."

The proposals aim to tighten the obligations of pawnshops and increase supervision. Pawnshops should have a clear ownership structure; they should identify and register goods when buying them and should also register data about the seller. All of this is currently absent. However, there is no need to go far for inspiration. For example, similar regulations are already in place in the neighbouring Czechia and Poland. Another principal requirement is the expansion of the powers of local governments, which could regulate the location of pawnshops.

Explained the mayor of the Bratislava-Ružinov municipal district, Martin Chren:

“That is, to have the ability to regulate where and where not a pawnshop can be located, what opening hours it can have, and if it is evident that a disruption of public order is taking place due to its operation, to be able to shut down such a pawnshop."

The mayor of the capital, Matúš Vallo, together with the mayor of the Bratislava-Ružinov municipal district, Martin Chren, drew attention to the ongoing problem in the well-known area of the Bratislava 500 bytov location, which is directly affected by this problem, a fact further confirmed by a representative of the residents of the given location.

Said Ján Sabo, a resident of the Bratislava’s 500 bytov district:

“We see the same scenario play out every day. People come with various goods, which often still have anti-theft security features on them. After the sale, a drug dealer is waiting a few metres away, and after a quick exchange, the drugs are used, often right next to our homes. Hazardous waste and people under the influence of drugs are left right here in the place where we live. This does not happen only once in a while. It happens daily, in front of residents, in an area full of families with small children. People are often afraid to walk past their own house. Simply put, this has a very specific impact on the quality of our lives."

Explained the mayor of Bratislava, Matúš Vallo:

“Over the past year, we have invested enormous efforts in improving safety in this area. We have radically intensified police patrols, and people have reported problematic behaviour, which has been followed by prompt police visits. The number of city police interventions in this neighbourhood has increased four-fold during the past year. We have improved the lighting here, made changes to traffic, and are checking places reserved for taxi services, as these are misused by drug dealers. It also needs to be said that the state has responded to our call about worsening safety, and some of the things we have been warning about have moved forward. For example, repeated petty thefts are now a criminal offence again."

This problem, of course, does not only concern the pawnshop in the above-mentioned 500 bytov location. The capital has also recorded a similar problem in other places. The result is that all the measures that the city has taken in terms of safety and in which the city and state police take part are thwarted specifically by the operation of pawnshops without clear rules. The presence of pawnshops in these locations helps keep crime in the area, and this then has a major negative impact on the entire community living in their vicinity.

Said the mayor of the Bratislava-Ružinov District, Martin Chren:

“If we look at companies providing quick loans, for example, or gambling dens, these types of businesses are regulated in Slovakia. The fact that such businesses are regulated is a completely normal and common matter. Everyone who goes to a gambling den must show their ID card. Similarly, if someone receives goods in a pawnshop, they should be responsible for their legal origin."

Concluded the mayor of the capital, Matúš Vallo:

“This is an acute problem that needs to be resolved. The issue of safety is one of the most important for residents, and it has no party affiliation. Therefore, I ask all political parties to take up this challenge and to adopt rapid legislative changes that will return the lives of residents around problematic pawnshops to normal. We are investing a lot of time, money and energy in solving the safety issue, and we do not want it all to go to waste."