Buffalo Pawnbroker Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $5,000
- Who Needs it: All pawnbrokers operating in Buffalo, New York
- Purpose: To protect the public from financial harm if the pawnbroker violates the terms of their license
- Who Regulates Pawnbrokers in Buffalo: The Buffalo Department of Permit and Inspection Services
Background
Buffalo Municipal Code 254-2 requires all pawnbrokers operating in the city to obtain a license from the Department of Permit and Inspection Services. The Buffalo 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 a license.
What is the Purpose of the Buffalo Pawnbroker Bond?
Buffalo requires pawnbrokers to purchase a surety bond as part of the application process to obtain a license. The bond protects the public from financial harm if the pawnbroker fails to comply with the regulations set forth in Buffalo Municipal Code 254-24. Specifically, the bond protects the public if the pawnbroker 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 a Buffalo Pawnbroker Surety Bond?
BondExchange makes obtaining a Buffalo 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 Buffalo Pawnbroker Bond?
No, a credit check is not required for the Buffalo 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 Buffalo Pawnbroker Bond Cost?
The Buffalo Pawnbroker bond costs just $100 per year.
Who is Required to Purchase the Buffalo Pawnbroker Bond?
Buffalo requires pawnbrokers to purchase a surety bond as a prerequisite to obtaining a license. To paraphrase Buffalo Municipal Code 254-1, a pawnbroker is a person who issues loans at interest 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 Buffalo?
Pawnbrokers in Buffalo must navigate several steps to obtain a license. Below are the general guidelines, but applicants contact the Department of Permit and Inspection Services for details on the process.
License Period – All Buffalo Pawnbroker Licenses expire on July 1 of each year and must be renewed before the expiration date.
Step 1 – Purchase a Surety Bond
Pawnbrokers must purchase and maintain a $5,000 surety bond.
Step 2 – Submit an Application
Pawnbrokers must submit their completed application to the Department of Permit and Inspection Services by mail or in person at the following address:
65 Niagara Square
301 City Hall
Buffalo, NY 14202
Brokers must complete the form in its entirety and submit the following items:
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- $450 license fee
- Surety bond
- Property address with proof of ownership
- Copy of government-issued photo identification
- Copy of current utility bill listing the applicant’s home address
- Business Certificate (DBA) or Corporate Filing Receipt
- One of the following:
- NY State Tax ID Certificate
- Applicant’s social security number
All applicants will be subject to a background check by the Buffalo Police Department.
How Do Buffalo Pawnbrokers Renew Their Licenses?
To renew their license, pawnbrokers should contact the Department of Permit and Inspection Services’ Office to obtain a renewal application before their license expires. Pawnbrokers must pay a $450 fee when renewing their license. All Buffalo Pawnbroker Licenses expire on July 1 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Pawnbrokers in Buffalo?
Buffalo does not require pawnbrokers to purchase any form of liability insurance. However, brokers may need to obtain insurance as a prerequisite to obtaining a state business license. Pawnbrokers must purchase and maintain a surety bond.
How Do Buffalo Pawnbrokers File Their Bonds?
Pawnbrokers should mail their completed bond forms, including the power of attorney, to the Buffalo Department of Permit and Inspection Services at the following address:
65 Niagara Square
301 City Hall
Buffalo, NY 14202
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 address
- Pawn shop business address
- Date the bond is signed
What Can Buffalo Pawnbrokers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, pawnbrokers in Buffalo 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 Buffalo?
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 Buffalo Pawnbroker Customers?
Buffalo unfortunately does not provide a public database of active pawnbrokers in the city. We suggest contacting the Department of Permit and Inspection Services to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.