New York City Secondhand Dealer Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: $1,000
- Who Needs it: All secondhand dealers operating in New York City, New York
- Purpose: To protect the public from financial harm if the secondhand dealer violates the terms of their license
- Who Regulates Secondhand Dealers in New York City: The New York City Department of Consumer and Worker Protection
Background
New York City Code 20-265 requires all secondhand dealers operating in New York City to obtain a license from the Department of Consumer and Worker Protection (DCWP). The New York City Council enacted the licensing requirement to ensure that secondhand dealers engage in ethical business practices. To provide financial security for the enforcement of the licensing law, secondhand dealers must purchase and maintain a $1,000 surety bond to be eligible for a license.
What is the Purpose of the New York City Secondhand Dealer Bond?
New York City requires secondhand dealers 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 secondhand dealer fails to comply with the regulations set forth in New York City Code 20-266. Specifically, the bond protects the public if the secondhand dealer 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 secondhand dealer violates the terms of their license.
How Can an Insurance Agent Obtain a New York City Secondhand Dealer Surety Bond?
BondExchange makes obtaining a New York City surety bond easy. Simply login to your account and use our keyword search to find the “Secondhand Dealer” 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 (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.
Not an agent? Then let us pair you with one!
Click the above image to find a BX Agent near you
Is a Credit Check Required for the New York City Secondhand Dealer Bond?
No, a credit check is not required for the New York City Secondhand Dealer bond. Because the bond is considered relatively low risk, the same low rate is offered to all secondhand dealers in the city regardless of their credit history.
How Much Does the New York City Secondhand Dealer Bond Cost?
The New York City Secondhand Dealer bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Bond?
New York City requires secondhand dealers to purchase a surety bond as a prerequisite to obtaining a license. To paraphrase New York City Code 20-264, a secondhand dealer is a person who purchases or collects secondhand furniture, machinery, jewelry, clothes, or other property from a person who is not a wholesaler, for the purpose of reselling or exchanging the property.
Garage sales and not-for-profit organizations are exempt from the bonding requirement. New York City requires different kinds of secondhand dealer bonds for each dealer based on the type of goods being sold.
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 Secondhand Dealers Apply for a License in New York City?
Secondhand dealers in New York City must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the DWCP’s website or the application instructions for details on the process.
Secondhand dealers that wish to engage in additional activities such as selling secondhand automobiles or electronic equipment may be required to obtain an additional license prior to conducting business.
License Period – All New York City Secondhand Dealer General Licenses expire on July 31 of every odd-numbered year and must be renewed before the expiration date.
Step 1 – Complete the Basic License Application
Secondhand dealers must first complete a basic license application. Dealers will submit general business information on the form including a social security number, employer identification number, and applicant background information.
Step 2 – Purchase a Surety Bond
Secondhand dealers must purchase and maintain a $1,000 surety bond. The bond form must list the business name and address exactly as it appears on all other documents
Step 3 – Submit an Application
Secondhand dealers must submit their license application online here or in person at the DCWP Licensing Center at the following address:
42 Broadway, Lobby
New York, NY 10004
In-person applications are made by appointment only. Applicants who apply online must register an account with the City of New York’s online portal. Dealers must complete the application in its entirety and ensure they submit the following items:
-
- $340 license fee
- Basic License Application
- Sales Tax ID Number
- Copy of $1,000 surety bond
- Copy of the bond receipt
- Copy of secondhand dealer’s fingerprints
Secondhand dealers must schedule an appointment and pay a $75 fee to have their fingerprints taken. License fees are prorated based on the date the application is filed. The DWCP will notify the applicant within two weeks of receiving the application.
How Do New York City Secondhand Dealers Renew Their Licenses?
Secondhand dealers will receive a renewal notice from the Department of Consumer and Worker Protection before their license expires. Dealers have the option to renew their license online here, in person, or by mail at the following address:
Licensing Center
42 Broadway, Lobby
New York, NY 10004
Secondhand Dealers must pay a $340 renewal fee and renew their surety bond to before obtaining a renewed license. All New York City Secondhand Dealer General Licenses expire on July 31 of every odd-numbered year and must be renewed before the expiration date.
What are the Insurance Requirements for Secondhand Dealers in New York City?
New York City does not require secondhand dealers to purchase any additional insurance. Secondhand dealers must purchase and maintain a $1,000 surety bond.
How Do New York City Secondhand Dealers File Their Bonds?
Secondhand dealers should mail their completed bond forms, including the power of attorney, to the Department of Consumer and Worker Protection at the following address:
42 Broadway, Lobby
New York, NY 10004
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 address of the entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- License type applied for
- Date the bond is signed
- Bond amount
What Can New York City Secondhand Dealers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, secondhand dealers in New York City must adhere to all licensing regulations and also ensure that they:
- Do not engage in any acts of fraud
- Faithfully honor all consumer contracts
- Provide all goods that have been paid for
What Other Insurance Products Can Agents Offer Secondhand Dealers in New York City?
Most reputable businesses 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. However, a list of brokers in this space can be found here.
How Can Insurance Agents Prospect for New York City Secondhand Dealer Customers?
New York City unfortunately does not provide a public database of active secondhand dealers in the city. We suggest contacting the Department of Consumer and Worker Protection to obtain this information. Contact BondExchange for additional marketing resources. Also, agents can leverage our print-mail relationships for discounted mailing services.