Omaha 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 Omaha, Nebraska
- Purpose: To protect the public from financial harm if the pawnbroker violates the terms of their permit
- Who Regulates Pawnbrokers in Omaha: The City of Omaha Planning Department
Background
Omaha Code of Ordinances 30-113 requires all pawnbrokers operating in the city to obtain a permit from the Planning Department. The Omaha City Council enacted the permitting requirement to ensure that pawnbrokers engage in ethical business practices. To provide financial security for the enforcement of the permitting law, pawnbrokers must purchase and maintain a $5,000 surety bond to be eligible for a permit.
What is the Purpose of the Omaha Pawnbroker Bond?
Omaha requires pawnbrokers to purchase a surety bond as part of the application process to obtain a pawnbroker permit. The bond protects the public from financial harm if the pawnbroker fails to comply with the regulations set forth in Omaha Code of Ordinances 30-115. 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 permit.
How Can an Insurance Agent Obtain a Omaha Pawnbroker Surety Bond?
BondExchange makes obtaining a Omaha 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 Omaha Pawnbroker Bond?
No, a credit check is not required for the Omaha 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 Omaha Pawnbroker Bond Cost?
The Omaha Pawnbroker bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Bond?
Omaha requires pawnbrokers to purchase a surety bond as a prerequisite to obtaining a pawnbroker permit. To paraphrase Omaha Code of Ordinances 30-111, 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 Permit in Omaha?
Pawnbrokers in Omaha must navigate several steps to obtain a permit. Below are the general guidelines, but applicants should contact the Planning Department for details on the process.
Permit Term– All Omaha Pawnbroker Permits expire on December 31 of each year and must be renewed before the expiration date.
Step 1 – Obtain Zoning Approval and a Certificate of Occupancy
Prior to submitting an application, pawnbrokers must obtain zoning approval and a certificate of occupancy for their pawn business location. Contact the Planning Department for assistance.
Step 2 – Purchase a Surety Bond
Pawnbrokers must purchase and maintain a $5,000 surety bond.
Step 3 – Complete the Application
Pawnbrokers can request a permit application via email from the Planning Department, which they must complete and submit by mail to the following address:
1819 Farnam Street, Suite 1100
Omaha, Nebraska 68183
Pawnbrokers must complete the form in its entirety and submit a $216 permit fee along with a completed surety bond form with it. All applicants will be reviewed by the Omaha Police Department prior to being issued a permit.
How do Omaha Pawnbrokers Renew Their Permit?
Pawnbrokers should contact the Planning Department to obtain a renewal application before their permit expires. All Omaha Pawnbroker Permits expire on December 31 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Omaha Pawnbrokers?
Omaha does not require pawnbrokers to purchase any form of liability insurance. Pawnbrokers must purchase and maintain a $5,000 surety bond.
How Do Omaha Pawnbrokers File Their Bonds?
Pawnbrokers should mail or deliver their completed bond forms, including the power of attorney, to the Planning Department at the following address:
1819 Farnam Street, Suite 1100
Omaha, Nebraska 68183
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 of the entity/individual(s) buying the bond
- Surety company’s name
- Pawnbroker’s business address
- Date the bond expires
- Notary acknowledgments
What Can Omaha Pawnbrokers do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, pawnbrokers in Omaha must ensure that they:
- Do not engage in any acts of fraud
- Faithfully honor all consumer contracts
- 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 Omaha?
Omaha does not require pawnbrokers to purchase liability insurance. 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 Omaha Pawnbroker Customers?
Omaha unfortunately does not provide a public database of active pawnbrokers in the city. We suggest contacting the Planning Department to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.