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$100 Storage Fee in Addition to PPT Fee?

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  • CharlieBrown911
    Junior Member
    • Apr 2022
    • 27

    $100 Storage Fee in Addition to PPT Fee?

    Can an FFL charge someone $147.19 fee for PPT + storage of the firearm? I had that experience at an FFL two days ago:

    I tried to execute a PPT as buyer at an FFL in LA County selected by the seller (or the seller rep with whom I struck a deal for purchase). After processing the DROS forms, the FFL owner said that the charge would be $147.19. It was my understanding that PPT fees are limited by law to $47.19 ($37.19 in DOJ fees and $10 per gun in dealer fees).

    The FFL owner said the additional $100 fee was for storage of the handgun during the 10-day waiting period. Just to be clear, it had nothing to do with storage of the gun after the 10-day waiting period. If the FFL owner had said the $100 fee was a deposit for failure to take possession of the handgun on the exact date it becomes available for pick-up, I would have likely said okay, simply because it was so time-consuming to arrange the purchase and then drive over an hour to get to the FFL.

    I refused to go forward with the transfer, telling the FFL owner that he should have informed me of the storage fee BEFORE processing the DROS to give me an opportunity to decline his services. He had abundant time to do so while we conversed for about 15 minutes before the seller and her rep showed up to the store. At no time during the meet did the FFL owner deny that he failed to tell me about the $100 storage fee prior to DROS processing.

    During the meet, the FFL owner's ONLY response to my criticism of his neglect to inform was the alleged posting of multiple signs on the store walls addressing the storage fee (in his response to my online review, he claimed that a notice was also posted on the door). This is critical to note because aside from signage, he did not provide or claim to provide any other manner of informing me of the storage fee.

    I use the adjective "alleged" in the above paragraph because I did not bother to search for signs the FFL owner claims shielded him from accusations of a failure to inform. A sign on a door or wall among multiple other signs is irrelevant unless it is lit up in flashing neon, posted on a sandwich board hung around the owner's neck, or otherwise creates a reasonable expectation that patrons would actually read the sign. And regardless of whether a sign on a wall has arguable relevance to the issue, it is not dispositive. It would not have been remotely burdensome to the FFL owner to have simply told me about the $100 fee prior to processing. But the FFL owner is apparently under the impression that signage alone is sufficient to render oral disclosure unnecessary and redundant.

    In his response to my online review, the FFL owner provided a second justification for his lack of fee disclosure that he failed to mention while I was in the store. He wrote in his online response that he had actually informed the seller about the $100 storage fee earlier that same day when the seller (or seller rep) had called to schedule an appointment for the DROS.

    I regard this claim to be a total fiction. If he had actually informed the seller of the fee prior to the meet, I'm rather certain he would have mentioned that in the store. Moreover, during the verbal exchange in the store, the seller remarked "I guess next time we should ask if there's a storage fee." If the FFL owner had truly informed the seller (or the seller rep) of the fee, I expect the owner would have responded, "I DID tell you (or her rep) about the storage fee!" But the FFL owner said nothing to that effect. The seller's rep also provided no response to the seller's remark. So this purported prior notice given to the seller, never brought up by the FFL owner at the time of meet but instead belatedly claimed in a response to an online review, appears to be pure fabrication.

    Duplicity aside, claiming that he informed the seller of the storage fee seems a feeble way to argue that it relinquishes any obligation to directly inform me of the $100 surcharge. It would be far-fetched for the FFL owner to claim he is ignorant that in almost every PPT transaction it is the buyer, and not the seller, who is responsible for paying DROS fees. The FFL owner clearly knew that I was the buyer and, in fact, I had started preparing the buyer portion of the DROS forms while we waited for the seller and her rep to arrive.

    Two issues: Firstly, is it legal for the FFL to require payment of the extra $100 for storage? The FFL owner was adamant that the fee was perfectly legal and that I could call CA DOJ to confirm. At the time of the meet, I did not question the legality of the storage charge though I did think it odd that there would be such a huge loophole in the cap on PPT dealer fees.

    Secondly, is it true that many other FFLs charge a storage fee? I have not encountered any such fees myself in my prior PPF transfers.

    I know the $10 fee for DROS processing is insignificant. I have always purchased ammo or accessories when at an FFL for DROS processing, partially due to awareness of this marginal revenue generated by the FFL. But I do question the legality of the fee, propriety of the FFL owner's conduct, and the claim that such fees are commonplace at FFLs.
    Last edited by CharlieBrown911; 07-01-2023, 4:28 PM. Reason: fix website replacement of quotes with question marks
  • #2
    edgerly779
    CGN/CGSSA Contributor
    CGN Contributor
    • Aug 2009
    • 19871

    How come you did njot out the ffl. Use credit card and dispute charges. dros charges are up front so do not pay th 100

    Comment

    • #3
      mdr110
      Member
      • Aug 2022
      • 147

      That FFL hosed ya, out him so we can stop patronage.

      As to your question:
      1. To mine understanding ppt can only be dros 37.19 + $10 profit per firearm.
      2. Most decent operators does not charge over $47.19 for ppt, however, there are some will nickel and dime you like the recent thread of charging tax on dros. During the covid/rush, many operators charges more than $47.19. DOJ joes nothing in enforcement and unless you want to bark it up to a lawsuit, operators will keep at it. Best to do is ALWAYS verify before and if afterthefact out the operator and do not ever return. damn $100 extra on simple ppt is harsh.
      Feedback/iTrader: https://www.calguns.net/calgunforum/...8#post28174608

      Comment

      • #4
        -hanko
        CGN/CGSSA Contributor
        CGN Contributor
        • Jul 2002
        • 14174

        Naming the FFL may save someone the hassle and BS you went through.

        Who is the FFL???
        True wealth is time. Time to enjoy life.

        Life's journey is not to arrive safely in a well preserved body, but rather to slide in sideways, totally worn out, shouting "holy schit...what a ride"!!

        Heaven goes by favor. If it went by merit, you would stay out and your dog would go in. Mark Twain

        A man's soul can be judged by the way he treats his dog. Charles Doran

        Comment

        • #5
          CharlieBrown911
          Junior Member
          • Apr 2022
          • 27

          In his response to my online review, the FFL owner complained I left the store before paying the PPT tax. But he was the one who gave me $3 back after I gave him a $50. Perhaps he could have collected taxes on his $10 dealer fee but forgot to do so. Or maybe he is upset about the 19 cents. And I did not run out of the store after paying. I took a few minutes to confirm that I had my DL, creds, docs, etc. before I left.

          Comment

          • #6
            bohoki
            I need a LIFE!!
            • Jan 2006
            • 20816

            offer to store it for them sheesh

            Comment

            • #7
              CharlieBrown911
              Junior Member
              • Apr 2022
              • 27

              The FFL is Arcadia Firearm & Security (626-538-4911) (arcadiafirearm.com). The FFL is supposedly changing its location. It is such a tiny store that I guess it needs to swindle patrons to stay in business.

              We had initially agreed to meet at Ammo Bros, but the seller changed the FFL while I was driving to Arcadia. I suppose it is a good learning lesson for me, and I posted online reviews primarily to warn others about the FFL.

              You can find my one star reviews on Google and Yelp along with the FFL responses. The FFL owner doesn't deny the $100 storage fee. In fact, he double-downs by saying that the fee is clearly posted all over the store and then (falsely) claims he told the seller about the fee. Please go to both review sites and click "like" so that the review is bumped up in visibility.

              Whether extra FFL fees are legal is unclear reading other forums. Some say additional fees are illegal. Some say that while the fee is fixed, DOJ does not enforce the PPT regs or reprimand FFLs who violate the regs. One post says that an additional fee is legal as long as it is not designated as a "dealer fee." Another post says that "DOJ advises dealers that storage fee during the 10 day wait are illegal but after its fair game."

              Regardless, the FFL owner's failure to inform me of the $100 storage fee until after the DROS was processed is highly unethical. I would have declined to handle the PPT at the FFL if the owner had informed me of the storage fee. It costed me $47 to cancel the DROS not to mention the 2-hour RT drive and gas.

              Comment

              • #8
                Djantlive
                Senior Member
                • Mar 2021
                • 612

                Not the first time I’ve heard of this BS. Always do ppt at a place you know or call them directly to ask about their ppt policy.

                I have driven 2 hrs each way to pick up a good deal before. If the seller isn’t willing to do some checking also, then I’d not go. Also, prepare another LGS as a backup.

                Comment

                • #9
                  Jess B. Guy
                  Senior Member
                  • Jul 2011
                  • 627

                  See PC 28055 - re: private party transfers.

                  PC 28055 (d) "The dealer may not charge any additional fees".

                  That's for ppt's, doesn't address new sales by the dealer.

                  If I'm reading this wrong let me know.

                  Comment

                  • #10
                    edgerly779
                    CGN/CGSSA Contributor
                    CGN Contributor
                    • Aug 2009
                    • 19871

                    Golden state guns is in azusa 47.19 out the door in 15 minutes $15bfee for any amount of ammo shipped to him. Plus tax if not paid.. There is another pawn shop Azusa Mega Pawn that posted on here also$ 47.19 out the door and 50 bucks for transfers when you need to have shipped in
                    Last edited by edgerly779; 07-02-2023, 3:47 PM.

                    Comment

                    • #11
                      flyer898
                      Senior Member
                      • Feb 2009
                      • 2017

                      Originally posted by Jess B. Guy
                      See PC 28055 - re: private party transfers.

                      PC 28055 (d) "The dealer may not charge any additional fees".

                      That's for ppt's, doesn't address new sales by the dealer.

                      If I'm reading this wrong let me know.
                      You might take a look at California Business and Professions Code Section 17200. It provides for a civil cause of action against any business that engages in an unlawful business practice. The fine is up to $2500 per occurrance, and there is a private right of action.
                      Gun dealers who get creative with finding ways to increase their bottom line need to become familiar with this law.
                      I have not heard of it being used in this context, but I do not see any reason that it would not apply.
                      Never argue with a fool, onlookers may not be able to tell the difference. So said somebody but not Mark Twain
                      "One argues to a judge, one does not argue with a judge." Me
                      "Never argue unless you are getting paid." CDAA
                      "I learned long ago, never to wrestle with a pig. You get dirty, and besides, the pig likes it." George Bernard Shaw

                      Comment

                      • #12
                        Spectre1995
                        Senior Member
                        • Nov 2013
                        • 1293

                        As an FFL I would rather not have to do all the paperwork and store the firearm for all of $10, but it is what it is and I'm happy to do it to help folks out.

                        Thankfully my clients are all very understanding of the fact that I can't charge more than $10 in addition to the DROS, and they usually buy a few boxes of ammo, a cleaning service, or some themed merchandise to make up for it.
                        Gearhead Guns LLC
                        01 FFL Licensed Gunsmith

                        No Longer Providing Transfer Services

                        We offer CNC Machining, Laser Engraving, Cerakote and More

                        El Segundo, CA
                        By Appointment Only!

                        sigpic

                        Comment

                        • #13
                          Gryff
                          CGSSA Coordinator
                          • May 2006
                          • 12686

                          Originally posted by kingransom
                          but they can certainly charge you an additional storage fee on top of the state regulated dros fees
                          No they cannot.

                          Unless the PPT fee wording has changed, it is explicit that no additional fee can be charged. If the FFL wants to charge a storage fee for holding the gun beyond the 10-day wait, they are entitled to do so.

                          California Penal Code 12082(a)
                          The purchaser or transferee or person being loaned the firearm may be required by the dealer to pay a fee not to exceed ten dollars ($10) per firearm, and no other fee may be charged by the dealer for a sale, loan, or transfer of a firearm conducted pursuant to this section
                          The FFL the OP went to is a piece of ****. I don't care if they "lose money" on the time it takes to do a PPT, it is the regulatory cost of doing business. A cost they knew about and agreed to when they applied for the FFL from within California. If they don't like it, then go open a 7/11 instead of a gun store.

                          If OP hasn't outed the FFL yet, they need to do so. This is literally criminal behavior, but since the state isn't going to do anything about it, we at least need to be given the opportunity to make a mark with our wallets.
                          My friends and family disavow all knowledge of my existence, let alone my opinions.

                          Comment

                          • #14
                            sass2924
                            Senior Member
                            • Oct 2009
                            • 757

                            Dealers can charge a storage fee beginning 1 day after the DROS is completed, but the fee needs to be posted. Charging it at the time of DROS is a violation.

                            Comment

                            • #15
                              Russian Bot
                              Senior Member
                              • Jan 2021
                              • 521

                              Unfortunately this is the result of the law of unintended consequences. A lot of FFLs supported the PPT at an FFL thing when it was making its way through legislature. They thought it would force more customers into stores. Now we always hear about how the measly $10 doesn't even pay for the counter person to fill out the paperwork.
                              I usually buy other things, even if not in the same trip as a PPT, I end up back at the FFL buying another gun, or accessories. That said I do it to help out a local business, and am under no illusion that they're doing PPTs to help me out.
                              The FFL in question here is definitely playing shady games even if not quite illegal.

                              Comment

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