Colorado Springs Pawnbroker Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Colorado Springs Pawnbroker bond.
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: $2,000
- Who Needs it: All pawnbrokers operating in Colorado Springs, Colorado
- Purpose: To protect the public from financial harm if the pawnbroker violates the terms of their license
- Who Regulates Pawnbrokers in Colorado Springs: The Colorado Springs City Clerk’s Office
Background
Colorado Springs City Code 2.3.803 requires all pawnbrokers operating in the city to obtain a license with the City Clerk’s office before conducting business. The Colorado Springs City Council enacted the licensing requirement to ensure that pawnbrokers engage in ethical business practices. To provide financial security for the enforcement of the licensing law, pawnbrokers must purchase and maintain a $2,000 surety bond to be eligible for licensure.
What is the Purpose of the Colorado Springs Pawnbroker Bond?
Colorado Springs requires pawnbrokers to purchase a surety bond as part of the application process to obtain a pawnbroker license. The bond ensures that the public will be protected from financial harm if the broker fails to comply with the regulations set forth in the Colorado Springs City Code 2.3.804. Specifically, the bond protects the public in the event the broker engages in any acts of fraud or mishandles a customer’s collateral. In short, the bond is a type of insurance that protects the public if the pawnbroker violates the terms of their license.
How Can an Insurance Agent Obtain a Colorado Springs Pawnbroker Surety Bond?
BondExchange makes obtaining a Colorado Springs Pawnbroker bond easy. Simply log in to your account and use our keyword search to find the “Pawnbroker” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
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Is a Credit Check Required for the Colorado Springs Pawnbroker Bond?
No, a credit check is not required for the Colorado Springs Pawnbroker bond. Because the bond is considered relatively low risk, the same low rate is offered to all pawnbrokers in the city regardless of their credit history.
How Much Does the Colorado Springs Pawnbroker Bond Cost?
The Colorado Springs Pawnbroker bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Colorado Springs Pawnbroker Bond?
Colorado Springs requires pawnbrokers to purchase a surety bond as a prerequisite to obtaining a pawnbroker license. To paraphrase the Colorado Springs City Code 2.3.802, a pawnbroker is a person who advances money to a customer on the delivery of personal property with the condition that the customer may repay the fixed price within a fixed period of time.
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How Do Pawnbrokers Apply for a License in Colorado Springs?
Pawnbrokers in Colorado Springs must navigate several steps to secure a business license. Below are the general guidelines, but applicants should refer to the City Clerk’s website for details on the process.
License Period – All Colorado Springs Pawnbroker Licenses expire one year from the date of issuance and must be renewed before the expiration date.
Step 1 – Purchase a Surety Bond
Pawnbrokers in Colorado Springs must purchase and maintain a $2,000 surety bond.
Step 2 – Complete an Application
All Colorado Springs Pawnbroker License applications should be submitted to the City Clerk’s Office online here or by mail at the following address:
30 South Nevada Avenue
Suite 101
Colorado Springs, CO 80903
Pawnbrokers must complete the application in its entirety and submit the following items:
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- $110 license fee
- Surety bond
- Department Review Form
- Certificate of Good Standing with the Colorado Secretary of State
Applicants who wish to apply online must create an account with Colorado Spring’s online licensing service. The City Clerk will notify pawnbrokers once their application is approved.
How do Colorado Springs Pawnbrokers Renew Their License?
Pawnbrokers must submit a renewal application online here and late renewals will be subject to a $55 fee. All Colorado Springs Pawnbroker Licenses expire one year from the date of issuance and must be renewed before the expiration date.
What are the Insurance Requirements for Colorado Springs Pawnbrokers?
Colorado Springs does not require pawnbrokers to purchase any form of liability insurance as a prerequisite to obtaining a pawnbroker license. Pawnbrokers must also purchase and maintain a $2,000 surety bond.
How Do Colorado Springs Pawnbrokers File Their Bonds?
Pawnbrokers should submit their completed bond forms, including the power of attorney, to the City Clerk’s Office at the following address:
30 South Nevada Avenue
Suite 101
Colorado Springs, CO 80903
The surety bond requires signatures, including witness signatures, from both the surety company that issues the bond and from the broker. The surety company should include the following information on the bond form:
- Legal name and address of the entity/individual(s) buying the bond
- Surety company’s name, address, and state of incorporation
- Date the bond is signed and goes into effect
What Can Colorado Springs Pawnbrokers Do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, pawnbrokers in Colorado Springs must ensure that they:
- Do not engage in any acts of fraud
- Do not breach contracts made with consumers
- Do not mishandle a customer’s collateral
What Other Insurance Products Can Agents Offer Pawnbrokers in Colorado Springs?
Colorado Springs does not require pawnbrokers to purchase liability insurance as a prerequisite to obtaining a pawnbroker license. However, most reputable businesses will purchase this insurance anyway. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Colorado Springs Pawnbroker Customers?
Colorado Springs unfortunately does not provide a public database of active pawnbrokers in the city. We suggest contacting the City Clerk for a list of licensed pawnbrokers. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
