Flint Pawnbroker Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: $1,000
- Who Needs it: All pawnbrokers operating in Flint, Michigan
- Purpose: To protect the public from financial harm if the pawnbroker violates the terms of their license
- Who Regulates Pawnbroker in Flint: The Licensing Division of the Flint City Clerk’s Office
Background
Flint Code of Ordinance 12-53.1 requires all pawnbrokers operating in the city to obtain a license from the Licensing Division of the Flint City Clerk’s Office. The Flint 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 $3,000 surety bond to be eligible for licensure.
What is the Purpose of the Flint Pawnbroker Bond?
Flint requires pawnbrokers to purchase a surety bond as part of the application process to obtain a business license. The bond protects the public from financial harm if the pawnbroker fails to comply with the regulations set forth in Michigan Compiled Law 446.202. Specifically, the bond protects the public if the pawnbroker engages in any 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 Flint Pawnbroker Surety Bond?
BondExchange makes obtaining a Flint 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 Flint Pawnbroker Bond?
No, a credit check is not required for the Flint 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 Flint Pawnbroker Bond Cost?
The Flint Pawnbroker bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Bond?
Flint requires pawnbrokers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Flint Code of Ordinance 12-54, 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 Flint?
Pawnbrokers in Flint must navigate several steps to obtain a license. Below are the general guidelines, but applicants should contact the City Clerk’s Office for details on the process.
License Period – All Flint Pawnbroker Licenses expire on April 30 of each year and must be renewed before the expiration date.
Step 1 – Purchase a Surety Bond
Pawnbrokers must purchase and maintain a $3,000 surety bond.
Step 2 – Complete the Application
Pawnbrokers are required to submit their initial application, including a $400 licensing fee, in person to the Licensing Division of the City Clerk’s Office located at the following address:
2nd Floor City Hall, 201-C 1101 S.
Saginaw St.
Flint, MI 48502
The division will walk the pawnbroker through the application process, provide them with all required forms, and answer any questions they may have.
How do Flint Pawnbrokers Renew Their License?
Pawnbrokers should contact the city’s Licensing Division to obtain a renewal application before their license expires. Pawnbrokers must pay a $400 renewal fee and will have the option to renew their license by mail. All Flint Pawnbroker Licenses expire on April 30 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Flint Pawnbrokers?
Flint does not require pawnbrokers to purchase any form of liability insurance as a prerequisite to obtaining a business license. Pawnbrokers must purchase and maintain a $3,000 surety bond.
How Do Flint Pawnbrokers File Their Bonds?
Pawnbrokers should mail or deliver their completed bond forms, including the power of attorney, to the City Clerk’s Office at the following address:
2nd Floor City Hall, 201-C
1101 South Saginaw Street
Flint, MI 48502
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 and city of the entity/individual(s) buying the bond
- Surety company’s name, city, and state of incorporation
- Date the bond is signed
What Can Flint Pawnbrokers do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, pawnbrokers in Flint must ensure that they:
- Do not engage in any acts of fraud
- Do not breach contracts made with consumers
What Other Insurance Products Can Agents Offer Pawnbrokers in Flint?
Flint does not require pawnbrokers to purchase liability insurance as a prerequisite to obtaining a license. 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 Flint Pawnbroker Customers?
Flint unfortunately does not provide a public database of active pawnbrokers in the city. We suggest contacting the Licensing Division of the City Clerk’s Office to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.