Augusta Pawnbroker Bond: A Comprehensive Guide
February 6, 2023
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $5,000
- Who Needs it: All pawnbrokers operating in Augusta, Georgia
- Purpose: To protect the public from financial harm if the pawnbroker engages in unethical business practices
- Who Regulates Pawnbroker in Augusta: The Augusta Planning and Development Department
Augusta-Richmond County Code 6-6-2 requires all pawnbrokers operating in the city to obtain a business tax certificate, also known as a business license, from the Planning and Development Department before conducting business. The Augusta City Council enacted the certification requirement to ensure that pawnbrokers pay all required taxes and engage in ethical business practices. To provide financial security for the enforcement of the certification law, pawnbrokers must purchase and maintain a $5,000 surety bond to be eligible for a business tax certificate.
What is the Purpose of the Augusta Pawnbroker Bond?
Augusta requires pawnbrokers to purchase a surety bond as part of the application process to obtain a business tax certificate. The bond ensures that the public will be protected from financial harm if the broker fails to comply with the regulations set forth in Augusta-Richmond County Code 6-6-7. Specifically, the bond protects the public in the event the broker engages in any acts of fraud or fails to report any stolen property. In short, the bond is a type of insurance that protects the public if the pawnbroker engages in unethical business practices.
How Can an Insurance Agent Obtain an Augusta Pawnbroker Surety Bond?
BondExchange makes obtaining an Augusta 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? Enroll 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 Augusta Pawnbroker Bond?
No, a credit check is not required for the Augusta 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 Augusta Pawnbroker Bond Cost?
The Augusta Pawnbroker bond costs just $100 per year.
Who is Required to Purchase the Bond?
Augusta requires pawnbrokers to purchase a surety bond as a prerequisite to obtaining a business tax certificate. To paraphrase Augusta-Richmond County Code 6-6-1 and 6-6-14, 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 Business Tax Certificate in Augusta?
Pawnbrokers in Augusta must navigate several steps to secure a business tax certificate. Below are the general guidelines, but applicants should refer to the application instructions for details on the process.
Certification Period – All Augusta Business Tax Certificates expire on December 31st of each year and must be renewed before the expiration date.
Step 1 – Contact the Planning and Development Department
To obtain a business tax certificate, pawnbrokers must contact the Planning and Development Department. The department will walk them through the application process, provide them with all required forms, and answer any questions they may have. All applications will, at a minimum, require the following items:
- The broker’s full name and business name
- Last four digits of the broker’s SSN
- Notarized citizenship affidavit
- Notarized private employer affidavit
- Federal firearms license
Pawnbrokers are required to pay an application fee determined by the department, and all applicants must register with the Sheriff’s Department for Leads Online here.
Step 2 – Purchase a Surety Bond
Pawnbrokers in Augusta must purchase and maintain a $5,000 surety bond.
How do Augusta Pawnbrokers Renew Their Business Tax Certificate?
Pawnbrokers should contact the Planning and Development Department to obtain a renewal application. All Augusta Pawnbroker Business Tax Certificates expire on December 31st of each year and must be renewed before the expiration date. Renewal applications submitted after December 31st will be subject to a late penalty fee.
What are the Insurance Requirements for the Augusta Pawnbrokers?
Augusta does not require pawnbrokers to purchase any form of liability insurance as a prerequisite to obtaining a business tax certificate. Pawnbrokers must purchase and maintain a $5,000 surety bond.
How Do Augusta Pawnbrokers File Their Bonds?
Pawnbrokers should submit their completed bond forms, including the power of attorney, to the following address:
535 Telfair Street
Augusta, GA 30901
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
- Date and year the bond goes into effect
- Date the bond is signed
What Can Augusta Pawnbrokers do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, pawnbrokers in Augusta must ensure that they:
- Do not engage in any acts of fraud
- Do not breach contracts made with consumers
- Pay all required taxes, fines, and fees
What Other Insurance Products Can Agents Offer Pawnbrokers in Augusta?
Augusta does not require pawnbrokers to purchase liability insurance as a prerequisite to obtaining a business tax certificate. 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 Augusta Pawnbroker Customers?
Augusta unfortunately does not provide a public database of active pawnbrokers in the city. We suggest contacting the Planning and Development Department for this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.