Oklahoma 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 Oklahoma
- Purpose: To protect the public from financial harm if the pawnbroker violates the terms of their license
- Who Regulates Pawnbrokers in Oklahoma: The Oklahoma Department of Consumer Credit
Background
Oklahoma Statute 59-1503 requires all pawnbrokers operating in the state to obtain a license from the Department of Consumer Credit. The Oklahoma 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 $5,000 surety bond to be eligible for a license.
What is the Purpose of the Oklahoma Pawnbroker Bond?
Oklahoma 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 Statute 59-1504. 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 Pawnbroker Surety Bond?
BondExchange makes obtaining an Oklahoma 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 Pawnbroker Bond?
No, a credit check is not required for the Oklahoma Pawnbroker bond. Because the bond is considered relatively low risk, the same low rate is offered to all pawnbrokers operating in the state, regardless of their credit history.
How Much Does the Oklahoma Pawnbroker Bond Cost?
The Oklahoma Pawnbroker bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Oklahoma Pawnbroker Bond?
Oklahoma 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.
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 Oklahoma?
Pawnbrokers in Oklahoma must navigate several steps to obtain a license and must obtain a separate license for each pawn shop location they operate. Below are the general guidelines, but applicants should refer to the application instructions for details on the process.
License Period – All Oklahoma Pawnbroker Licenses expire on December 31 of each year and must be renewed before the expiration date.
Step 1 – Meet the Net Worth Requirements
To be eligible for a license, pawnbrokers must have at least $25,000 in net assets available for regulated loan operations. Brokers will be required to submit a notarized financial statement with their license application as proof of meeting the net worth requirements.
Step 2 – Purchase a Surety Bond
Pawnbrokers must purchase and maintain a $5,000 surety bond.
Step 3 – Complete the Application
Pawnbrokers should submit a completed application to the Department of Consumer Credit at the following address:
3613 NW 56th, Suite 240
Oklahoma City, OK 73112-4512
Pawnbrokers must complete the application in its entirety, get it notarized, and ensure they submit the following items:
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- $325 investigation fee
- $240 license fee
- $400 examination fee
- Surety bond
- Notarized financial statement
- Citizenship affidavit
All pawnbrokers will be subject to a criminal background check and applications typically take up to 60 days to process. Contact the Department of Consumer Credit for additional assistance in the application process.
How Do Oklahoma Pawnbrokers Renew Their Licenses?
The Department of Consumer Credit will send the pawnbroker all required renewal forms before the broker’s license expires. Pawnbrokers must pay a $640 renewal fee and ensure that they renew their surety bond to avoid termination of their license. Renewal applications must be submitted by December 1st, and all renewals submitted after December 1st will be subject to a $10 per day late fee. All Oklahoma Pawnbroker Licenses expire on December 31 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Pawnbrokers in Oklahoma?
Oklahoma does not require pawnbrokers to purchase any additional insurance before obtaining a license. Pawnbrokers must purchase and maintain a $5,000 surety bond.
How Do Oklahoma Pawnbrokers File Their Bonds?
Pawnbrokers should submit their completed bond forms, including the power of attorney, to the Department of Consumer Credit at the following address:
3613 NW 56th, Suite 240
Oklahoma City, OK 73112-4512
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, address, and county of the entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Date the bond is signed and goes into effect
What Can Oklahoma Pawnbrokers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, pawnbrokers in Oklahoma 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?
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 Pawnbroker Customers?
Oklahoma unfortunately does not provide a public database of active pawnbrokers in the state. We suggest contacting the Department of Consumer Credit to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
