Oklahoma City Pawnbroker Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $5,000
- Who Needs it: All pawnbrokers operating in Oklahoma City, Oklahoma
- Purpose: To protect the public from financial harm if the pawnbroker violates the terms of their license
- Who Regulates Pawnbrokers in Oklahoma City: The Oklahoma City Business Licensing Office
Background
Oklahoma City Code of Ordinances 54-161 requires all pawnbrokers operating in the city to obtain a license from the Business Licensing Office. The Oklahoma 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 $1,000 surety bond to be eligible for a license.
What is the Purpose of the Oklahoma City Pawnbroker Bond?
Oklahoma City 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 Oklahoma City Code of Ordinances 54-164. 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 an Oklahoma City Pawnbroker Surety Bond?
BondExchange makes obtaining an Oklahoma City 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 Oklahoma City Pawnbroker Bond?
No, a credit check is not required for the Oklahoma City 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 Oklahoma City Pawnbroker Bond Cost?
The Oklahoma City Pawnbroker bond costs just $100 per year.
Who is Required to Purchase the Oklahoma City Pawnbroker Bond?
Oklahoma City requires pawnbrokers to purchase a surety bond as a prerequisite to obtaining a pawnbroker license. To paraphrase Oklahoma Statute 59-1502, 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.
How Do Pawnbrokers Apply for a License in Oklahoma City?
Pawnbrokers in Oklahoma City must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the Business Licensing Office’s website for details on the process.
License Period – All Oklahoma City Pawnbroker Licenses expire one year from the date of issuance and must be renewed before the expiration date.
Step 1 – Obtain a State Pawnbroker License
Pawnbrokers must first obtain a state pawnbroker license from the Oklahoma Department of Consumer Credit before applying for a local pawnbroker license in Oklahoma City. Click here for additional information on the Oklahoma Pawnbroker License.
Step 2 – Obtain a Used Merchandise License
Pawnbrokers must also obtain a used merchandise license from the city’s Business Licensing Office before applying for a pawnbroker license in Oklahoma City. Brokers will need to complete an application, pass a background check, and pay a $20 fee to obtain a used merchandise license. Visit the Business Licensing Office’s website for more information.
Step 3 – Purchase a Surety Bond
Pawnbrokers must purchase and maintain a $1,000 surety bond.
Step 4 – Complete the Application
After obtaining all required licenses, pawnbrokers should submit a completed application to the Business Licensing Office online here or by mail at the following address:
420 West Main, 8th Floor
Oklahoma City, OK 73102
Pawnbrokers must complete the application in its entirety and ensure they submit the following items:
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- $50 annual fee
- Surety bond
- OK Sales Tax Permit
- Valid driver’s license or state-issued identification
- Immigration affidavit, if applicable
Contact the Business Licensing Office for additional assistance in the application process.
How Do Oklahoma City Pawnbrokers Renew Their Licenses?
To renew their license, pawnbrokers can submit a completed application to the Business Licensing Office online here or by mail at the following address:
420 West Main, 8th Floor
Oklahoma City, OK 73102
Pawnbrokers must pay a $50 renewal fee and ensure that they renew their surety bond to avoid termination of their license. All Oklahoma City Pawnbroker Licenses expire one year from the date of issuance and must be renewed before the expiration date.
What are the Insurance Requirements for Pawnbrokers in Oklahoma City?
Oklahoma City does not require pawnbrokers to purchase any additional insurance. Pawnbrokers must purchase and maintain a $1,000 surety bond.
How Do Oklahoma City Pawnbrokers File Their Bonds?
Pawnbrokers should submit their completed bond forms, including the power of attorney, to the Business Licensing Office at the following address:
420 West Main, 8th Floor
Oklahoma City, OK 73102
The bond requires signatures, including witness 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
- License term period
- Date the bond is signed
What Can Oklahoma City Pawnbrokers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, pawnbrokers in Oklahoma City 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 Oklahoma City?
Most reputable pawnbrokers will purchase liability insurance. 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 Oklahoma City Pawnbroker Customers?
Oklahoma City unfortunately does not provide a public database of active pawnbrokers in the city. We suggest contacting the Business Licensing Office to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
