Central Falls Pawnbroker Bond: A Comprehensive Guide

This guide provides information for insurance agents to help their customers obtain a Central Falls 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 Central Falls, Rhode Island
• Purpose: To protect the public from financial harm if the pawnbroker violates the terms of their license
• Who Regulates Pawnbrokers in Central Falls: The Central Falls City Clerk

Background

Rhode Island General Law 19-26-2 requires all pawnbrokers operating within the state to obtain a license from their local city or town’s licensing authority. The Rhode Island legislature 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 a license.

What is the Purpose of the Central Falls Pawnbroker Bond?

Central Falls requires pawnbrokers to purchase a surety bond as part of the application process to obtain a pawnbroker license. The bond protects the public from financial harm if the pawnbroker fails to comply with the regulations set forth in Rhode Island General Law 19-26-3. Specifically, the bond protects the public if the pawnbroker engages in acts of fraud or breaches 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 Central Falls Pawnbroker Surety Bond?

BondExchange makes obtaining a Central Falls 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 Central Falls Pawnbroker Bond?

No, a credit check is not required for the Central Falls Pawnbroker bond. Because the bond is considered relatively low risk, the same low rate is offered to all pawnbrokers operating in the city, regardless of their credit history.

How Much Does the Central Falls Pawnbroker Bond Cost?

The Central Falls Pawnbroker bond costs either $100 per year or $10 per month.

Who is Required to Purchase the Central Falls Pawnbroker Bond?

Central Falls requires pawnbrokers to purchase a surety bond as a prerequisite to obtaining a pawnbroker license. To paraphrase Rhode Island General Law 19-26-1, 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.

Exemptions to this definition include:

• National banks
• Banks and trust companies incorporated in Rhode Island

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 Central Falls?

Pawnbrokers in Central Falls must navigate several steps to obtain a license. Below are the general guidelines, but applicants should contact the City Clerk for details on the process.

License Period – All Central Falls Pawnbroker Licenses expire December 1st and must be renewed before the expiration date.

Step 1 – Obtain a Retail Sales Permit

Pawnbrokers must first register their business and obtain a retail sales permit with the Rhode Island Division of Taxation before applying for a pawnbroker license. Brokers can obtain one through the division’s online portal, and pawnbrokers must submit proof of the retail sales permit when submitting their license application.

Step 2 – Complete a Background Check

Pawnbrokers must also complete a background check with the Attorney General’s office. Brokers can complete this process in person or by mail at the Attorney General Customer Service Center, and all applicants for a pawnbroker license must provide proof of a completed background check.

Step 3 – Purchase a Surety Bond

Pawnbrokers must purchase and maintain a $2,000 surety bond.

Step 4 – Complete the Application

Pawnbrokers should submit a completed application to the City Clerk at the following address:

580 Broad St
Central Falls, RI 02863

Pawnbrokers must complete the application in its entirety and ensure they submit the following items:

• • $150 license fee
  • Surety bond
  • RI Retail Sales Permit
  • Completed background check
  • Certificate of Occupancy

All applications will be reviewed by the Central Falls City Council, and applicants will be notified if their license is approved. Contact the City Clerk for additional assistance in the application process.

How Do Central Falls Pawnbrokers Renew Their Licenses?

The City Clerk will send a renewal notice to the pawnbroker in mid-Septmeber with instructions on how to renew their license. Pawnbrokers must pay a $150 renewal fee and ensure that they renew their surety bond to avoid termination of their license. All Central Falls Pawnbroker Licenses expire on December 1st of each year and must be renewed before the expiration date.

What are the Insurance Requirements for Pawnbrokers in Central Falls?

Central Falls does not require pawnbrokers to purchase any additional insurance. Pawnbrokers must purchase and maintain a $2,000 surety bond.

How Do Central Falls Pawnbrokers File Their Bonds?

Pawnbrokers should submit their completed bond forms, including the power of attorney, to the City Clerk at the following address:

580 Broad St
Central Falls, RI 02863

The bond requires signatures from both the surety company that issues the bond and the applicant. 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 Central Falls Pawnbrokers do to Avoid Claims Made Against Their Bonds?

To avoid claims on their bonds, pawnbrokers in Central Falls must ensure that they:

• Do not engage in any acts of fraud or misrepresentation
• Do not breach contracts made with consumers
• Maintain all required transaction records
• Return all pledged goods that have been paid for
• Obtain proof of identification during each transaction

What Other Insurance Products Can Agents Offer Pawnbrokers in Central Falls?

Central Falls does not require pawnbrokers to purchase any liability insurance. 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 Central Falls Pawnbroker Customers?

Central Falls unfortunately does not provide a public database of active pawnbrokers in the city. We suggest contacting the City Clerk to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.