Waterloo Pawnbroker Bond: A Comprehensive Guide
February 2, 2023
This guide provides information for insurance agents to help their customers obtain a Waterloo Pawnbroker bond.
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $10,000
- Who Needs it: All pawnbrokers operating in Waterloo, Iowa
- Purpose: To protect the public from financial harm if the pawnbroker violates the terms of their license
- Who Regulates Pawnbrokers in Waterloo: The Waterloo City Clerk’s Office
Waterloo City Code 3-4A-2 requires all pawnbrokers operating in the city to obtain a license with the City Clerk’s office before conducting business. The Waterloo 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 licensure.
What is the Purpose of the Waterloo Pawnbroker Bond?
Waterloo requires pawnbrokers to purchase a surety bond as part of the application process to obtain a pawnbroker license. The bond ensures that the public will be protected from financial harm if the broker fails to comply with the regulations set forth in the Waterloo City Code 3-4A-2. Specifically, the bond protects the public in the event the broker 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 Waterloo Pawnbroker Surety Bond?
BondExchange makes obtaining a Waterloo 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? Enroll 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 Waterloo Pawnbroker Bond?
No, a credit check is not required for the Waterloo Pawnbroker bond. Because the bond is considered relatively low risk, the same low rate is offered to all pawnbrokers in the city regardless of their credit history.
How Much Does the Waterloo Pawnbroker Bond Cost?
The Waterloo Pawnbroker bond costs just $100 per year.
Who is Required to Purchase the Waterloo Pawnbroker Bond?
Waterloo requires pawnbrokers to purchase a surety bond as a prerequisite to obtaining a pawnbroker license. To paraphrase the Waterloo City Code 3-4A-1, a pawnbroker is a person who advances money to a customer on the delivery of personal property.
How Do Pawnbrokers Apply for a License in Waterloo?
Pawnbrokers in Waterloo must navigate several steps to secure a pawnbroker license. Below are the general guidelines, but applicants should contact the City Clerk’s Office for details on the process.
License Period – All Waterloo Pawnbroker Licenses expire on December 31st of each year and must be renewed before the expiration date.
Step 1 – Purchase a Surety Bond
Pawnbrokers in Waterloo must purchase and maintain a $10,000 surety bond.
Step 2 – Complete an Application
All Waterloo Pawnbroker License applications should be submitted to the City Clerk’s Office by mail at the following address:
715 Mulberry Street
Waterloo, IA 50703
Pawnbrokers must complete the application in its entirety, get it notarized, and submit the following items:
- $50 license fee
- Surety bond
- Criminal conviction history
Applicants must obtain approval from the Police Department and the Zoning Department before submitting their license. The City Clerk will notify pawnbrokers once their application is approved.
How do Waterloo Pawnbrokers Renew Their License?
Pawnbrokers must contact the City Clerk’s Office to obtain a renewal application. All Waterloo Pawnbroker Licenses expire on December 31st of each year and must be renewed before the expiration date. Pawnbrokers who do not renew their license by January 1st will be subject to a $10 fee.
What are the Insurance Requirements for Waterloo Pawnbrokers?
Waterloo does not require pawnbrokers to purchase any form of liability insurance as a prerequisite to obtaining a pawnbroker license. Pawnbrokers must also purchase and maintain a $10,000 surety bond.
How Do Waterloo Pawnbrokers File Their Bonds?
Pawnbrokers should submit their completed bond forms, including the power of attorney, to the City Clerk’s Office at the following address:
715 Mulberry Street
Waterloo, IA 50703
The surety bond requires signatures from both the surety company that issues the bond and from the broker. 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 address
- Date the bond is signed and goes into effect
What Can Waterloo Pawnbrokers Do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, pawnbrokers in Waterloo 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 Waterloo?
Waterloo does not require pawnbrokers to purchase liability insurance as a prerequisite to obtaining a pawnbroker 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 Waterloo Pawnbroker Customers?
Waterloo unfortunately does not provide a public database of active pawnbrokers in the city. We suggest contacting the City Clerk for a list of licensed pawnbrokers. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.