Rochester Pawnbroker Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: $10,000
- Who Needs it: All pawnbrokers operating in Rochester, New York
- Purpose: To protect the public from financial harm if the pawnbroker violates the terms of their license
- Who Regulates Pawnbrokers in Rochester: The Rochester City Clerk
Background
Chapter 80 of the Rochester City Code requires all pawnbrokers, also known as collateral loan brokers, operating in the city to obtain a license from the Rochester City Clerk. The Rochester 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 $10,000 surety bond to be eligible for a license.
What is the Purpose of the Rochester Pawnbroker Bond?
Rochester 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 Chapter 80 of the Rochester City Code. 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 Rochester Pawnbroker Surety Bond?
BondExchange makes obtaining a Rochester 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 Rochester Pawnbroker Bond?
No, a credit check is not required for the Rochester 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 Rochester Pawnbroker Bond Cost?
The Rochester Pawnbroker bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Rochester Pawnbroker Bond?
Rochester requires pawnbrokers to purchase a surety bond as a prerequisite to obtaining a license. The City of Rochester defines a pawnbroker as 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.
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 Rochester?
Pawnbrokers in Rochester must navigate several steps to obtain a license. Below are the general guidelines, but applicants contact the City Clerk for details on the process.
License Period – All Rochester Pawnbroker Licenses expire on May 31 of each year and must be renewed before the expiration date.
Step 1 – Purchase a Surety Bond
Pawnbrokers must purchase and maintain a $10,000 surety bond.
Step 2 – Submit an Application
Pawnbrokers must submit their completed application to the City Clerk’s Office by mail or in person at the following address:
City Clerk’s Office
Licensing Unit
Room 100A, City Hall
Rochester, NY 14614
Brokers must complete the form in its entirety and submit a $250 license fee along with a surety bond with their application. Applications must obtain approval from the city’s Zoning Office, Police and Fire Departments, and the Neighborhood Service Center. All applicants are subject to background checks.
How Do Rochester Pawnbrokers Renew Their Licenses?
To renew their license, pawnbrokers should contact the City Clerk to obtain a renewal application before their license expires. Dealers are required to pay a $250 fee when renewing their license. All Rochester Pawnbroker Licenses expire on May 31 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Pawnbrokers in Rochester?
Rochester 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 Rochester Pawnbrokers File Their Bonds?
Pawnbrokers should mail their completed and notarized bond forms, including the power of attorney, to the City Clerk at the following address:
Room 100A, City Hall
Rochester, NY 14614
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
- Bond amount
- License type applied for
- Date the bond is signed
What Can Rochester Pawnbrokers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, pawnbrokers in Rochester 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 Rochester?
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 Rochester Pawnbroker Customers?
Rochester unfortunately does not provide a public database of active pawnbrokers in the city. We suggest contacting the City Clerk to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.