Clayton County Pawnbroker Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: $8,000
- Who Needs it: All pawnbrokers operating in the unincorporated parts of Clayton County, Georgia
- Purpose: To protect the public from financial harm if the pawnbroker violates the terms of their license
- Who Regulates Pawnbrokers in Clayton County: The Clayton County Community Development Department
Background
Clayton County Code of Ordinances 22-201 requires all pawnbrokers operating in the unincorporated parts of the county to obtain a license with the Community Development Department before conducting business. The Clayton County Board of Commissioners 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 an $8,000 surety bond to be eligible for licensure.
The unincorporated parts of Clayton County include all areas in the county outside of the following municipalities:
- College Park
- Forest Park
- Jonesboro
- Lake City
- Riverdale
All pawnbrokers operating within any of the above municipalities must obtain a business license from their respective licensing agencies.
What is the Purpose of the Clayton County Pawnbroker Bond?
Clayton County 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 Clayton County Code of Ordinances 22-201. Specifically, the bond protects the public in the event the broker engages in any acts of fraud or breaches any consumer contracts. 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 Clayton County Pawnbroker Surety Bond?
BondExchange makes obtaining a Clayton County 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.
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Is a Credit Check Required for the Clayton County Pawnbroker Bond?
No, a credit check is not required for the Clayton County 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 Clayton County Pawnbroker Bond Cost?
The Clayton County Pawnbroker bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Clayton County Pawnbroker Bond?
Clayton County requires pawnbrokers to purchase a surety bond as a prerequisite to obtaining a pawnbroker license. To paraphrase the Clayton County Code of Ordinances 22-161, a pawnbroker is a person who issues loans to individuals that leave their property, as collateral, for the broker to sell on condition that the customer may repurchase the property 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 Clayton County?
Pawnbrokers in Clayton County must navigate several steps to secure a pawnbroker license. Below are the general guidelines, but applicants should refer to the Community Development Department’s website for details on the process.
License Period – All Clayton County Pawnbroker Licenses expire on January 1st of each year and must be renewed before the expiration date.
Step 1 – Purchase a Surety Bond
Pawnbrokers in Clayton County must purchase and maintain a $8,000 surety bond.
Step 2 – Contact the Community Development Department
To obtain a license, pawnbrokers must contact the Community Development Department. The agency will walk them through the application process, provide them with all required forms, and answer any questions they may have. All license applications will, at a minimum, require the following items:
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- The broker’s full name and business name
- A fire marshal inspection report
- A full set of the broker’s fingerprints
- A certificate of occupancy permit
- An original surety bond
Pawnbrokers are required to pay an application fee determined by the department. Once the application is approved, the pawnbroker will be notified by the department and may begin conducting business.
How do Clayton County Pawnbrokers Renew Their License?
Pawnbrokers should contact the Community Development Department to obtain a renewal application before their license expires. All Clayton County Pawnbroker Licenses expire on January 1st of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Clayton County Pawnbrokers?
Clayton County does not require pawnbrokers to purchase any form of liability insurance as a prerequisite to obtaining a pawnbroker license. Pawnbrokers must purchase and maintain an $8,000 surety bond.
How Do Clayton County Pawnbrokers File Their Bonds?
Pawnbrokers should submit their completed bond forms, including the power of attorney, to the following address:
Community Development Department
121 South McDonough Street
Jonesboro, GA 30236
The surety bond requires 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 of the entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Name of the obligee and the license type applied for
- Bond amount
- Date the bond goes into effect
- Date the bond is signed
What Can Clayton County Pawnbrokers Do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, pawnbrokers in Clayton County must ensure that they:
- Do not engage in any acts of fraud
- Do not breach contracts made with consumers
What Other Insurance Products Can Agents Offer Pawnbrokers in Clayton County?
Clayton County 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 Clayton County Pawnbroker Customers?
Clayton County unfortunately does not provide a public database of active pawnbrokers in the city. We suggest contacting the Community Development Department for a list of licensed pawnbrokers. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
