How The Law Can Decimate The Profits Of Scrap Metal Dealers

published – May 9th 2022

Unless you’re a crooked politician, laws will likely apply to you no matter how you make your living. The law of the land is inescapable for most and the punishment for breaking such rules can be harsh. Sadly, certain unscrupulous scrap metal dealers have caught the attention of authorities in recent years. For this reason, there are some strict issues you should know about.

burglary How The Law Can Decimate The Profits Of Scrap Metal Dealers earn work jobs make money selling sell laws legislation — photo by Ricinator from pixabay

Licensing & Permits

Do scrap metal laws apply near me? Depending on your country, legitimate dealers usually hold licenses so always enquire about this before you do business. There are different kinds of licenses depending on what sort of service you will be providing as a scrap metal dealer.

Not holding a license while doing business can result in hefty fines as punishment. There is usually some sort of appeals process if your license application is rejected.

Ask your buyer, company or yard owner to show you their license before selling to them. You can also potentially become compromised and get in trouble if they are found to be breaking the law. Sometimes you will need to pay for a license so make sure you have some free cash to invest upfront in this situation.

Additionally, you might be required to display your license or permit on one of the windows of the vehicle you use to transport your haul. As you can imagine, these licenses only last for a certain number of years so they will need renewing once expired.

Documentation

Some buyers may ask you to show proof of your home address as well as your personal ID. This might be as a valid in-date passport or driver’s license for an extra layer of payment security. You might also need to bring a recent bank statement and utility bill with you on the day of sale.

However, it may only be necessary to produce documents on your first visit. Some scrap yards allow you to register an account with them. This will mean you don’t have to show documents during each and every interaction.

Scrap Metal Theft

Unfortunately, there are even more hoops that you will need to jump through in order to make money. This is due to the influx of theft (particularly copper wire from railroads and telecom lines).

Stealing scrap metal for sale from recycling bins is also illegal. You may believe you are acting as a helpful removal service, but it’s best to check what you’re doing is fair and within the law.

Theft is something that has increased in recent years. Although, it is also something that has been taken far more seriously as well. If you pursue scrap metal dealing for cash then make sure that you are operating legally as the punishments can be severe.

Make sure that you obtain scrap metal through legitimate means and have legal ownership of it. You will be punished by the authorities if this is not the case.

Selling locations are obligated to report you to the police if they suspect that you are attempting to sell stolen scrap metal to them. These people are often trained to pick up on telltale signs so don’t assume that you will slip through the net.

Payment Methods

There will be some bureaucratic red tape that you will need to wrangle with if you want to deal in scrap metal for money the legal way. Particularly in the UK, a lot of metal traders and disposal sites will not offer cash payments due to the law.

Auction or otherwise, you may have to make do with other payment methods such as a bank transfer or a check. You have to be a little wary of people who want to buy your inventory with cash as this is illegal in certain countries as I’ve mentioned.

Overall, you might find it a lot easier to get paid by doing a conventional job within the scrap metal market rather than going independent.

There are plenty of recycling centers as well as other places where you can work and jobscan can help you get there. This website will help you optimize your resume and assist you during the job interview stage too.

hammer How The Law Can Decimate The Profits Of Scrap Metal Dealers earn work jobs make money selling sell laws legislation — photo by succo from pixabay

The increase in crime has unfortunately led to the increase in much more stringent laws around this business. This earner isn’t as easy as it once was due to all the hoop-jumping involved. However, I do still believe scrap metal recycling is worth looking into for anyone who has an interest.

The next item on your agenda should be to start the application process for your very own license. Most countries will allow you to complete this online after a review and approval stage.

The long arm of the law isn’t the only thing to watch out for as you also need to consider the dangers of being a scrap metal collector. Comparatively, I explain How Scrap Metal Dealers Can Protect Themselves, Other People & The Environment.

In your opinion, are all these rules necessary? Do you think the law would prevent or make it hard for you to make money as a scrap metal hauler? Please don’t forget to share this with your friends and like it on social media. You can subscribe to our newsletter and comment below too. Thanks for reading!