East Point Pawnbroker Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: $5,000
- Who Needs it: All pawnbrokers operating in East Point, Georgia
- Purpose: To protect the public from financial harm if the pawnbroker violates the terms of their license
- Who Regulates Pawnbroker in East Point: The East Point Planning and Community Development Department
Background
East Point Code of Ordinances 5-3062 requires all pawnbrokers operating in the city to obtain a license with the Planning and Community Development Department before conducting business. The East Point 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 $5,000 surety bond to be eligible for licensure.
What is the Purpose of the East Point Pawnbroker Bond?
East Point 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 East Point Code of Ordinances 5-3071. 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 an East Point Pawnbroker Surety Bond?
BondExchange makes obtaining an East Point 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 East Point Pawnbroker Bond?
No, a credit check is not required for the East Point 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 East Point Pawnbroker Bond Cost?
The East Point Pawnbroker bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Bond?
East Point requires pawnbrokers to purchase a surety bond as a prerequisite to obtaining a pawnbroker license. To paraphrase the East Point Code of Ordinances 5-3058, 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 East Point?
Pawnbrokers in East Point must navigate several steps to secure a pawnbroker license. Below are the general guidelines, but applicants should refer to the Planning and Community Development Department’s website for details on the process.
License Period – All East Point 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 East Point must purchase and maintain a $5,000 surety bond.
Step 2 – Complete an Application
Pawnbrokers must submit a completed application to the following address:
Business License Division
Planning and Community Development
2757 East Point Street
East Point, GA 30344
Once the application is processed, brokers will be notified with instructions on how to pay the application fee online. After payment is received, the department will send the license to the pawnbroker via email.
Contact the East Point Planning and Community Development Department for additional details on the application process.
How do East Point Pawnbrokers Renew Their Licenses?
Pawnbrokers should contact the Planning and Community Development Department to obtain a renewal application before their license expires. All East Point Pawnbroker Licenses expire one year from the date of issuance and must be renewed before the expiration date.
What are the Insurance Requirements for the East Point Pawnbrokers?
East Point does not require pawnbrokers to purchase any form of liability insurance as a prerequisite to obtaining a pawnbroker license. Pawnbrokers must purchase and maintain a $5,000 surety bond.
How Do East Point Pawnbrokers File Their Bonds?
Pawnbrokers should submit their completed bond forms, including the power of attorney, to the following address:
Business License Division
Planning and Community Development
2757 East Point Street
East Point, GA 30344
The surety bond requires signatures from both the surety company that issues the bond and from the dealer. 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 East Point Pawnbrokers do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, pawnbrokers in East Point 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 East Point?
East Point does not require pawnbrokers to purchase liability insurance as a prerequisite to obtaining a 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 East Point Pawnbroker Customers?
East Point unfortunately does not provide a public database of active pawnbrokers in the city. We suggest contacting the Planning and Community Development Department for this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
