Wilson Pawnbroker Bond: A Comprehensive Guide
May 27, 2022
This guide provides information for insurance agents to help their customers obtain a Wilson Pawnbroker Bond
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $5,000
- Who Needs it: All pawnbrokers operating in Wilson, North Carolina
- Purpose: To ensure the public will receive compensation for any damages should the pawnbroker violate licensing law
- Who Requires the Bond: The City of Wilson
Wilson Municipal Code 28-1 requires all pawnbrokers operating in the city to obtain a license before conducting business. The Wilson 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 $5,000 surety bond to be eligible for licensure. Additionally, North Carolina Statute 66-399 mandates that all pawnbrokers operating in the state file a bond with their local municipal authority before conducting business.
What is the Purpose of the Wilson Pawnbroker Bond?
Wilson requires pawnbrokers to purchase a surety bond as part of the application process to obtain a business license. The bond ensures that the public will receive compensation for financial harm if the broker fails to comply with the regulations set forth in Wilson Municipal Code 28-2 and North Carolina Statute 66-399. Specifically, the bond protects the public in the event the broker commits any acts of fraud or breaches consumer contracts. In short, the bond is a type of insurance that protects the public if the pawnbroker breaks licensing law.
How Can an Insurance Agent Obtain a Wilson Pawnbroker Surety Bond?
BondExchange makes obtaining a Wilson Pawnbroker bond easy. Simply log in to your account and use our keyword search to find the “Wilson” 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 Wilson Pawnbroker Bond?
No, a credit check is not required for the Wilson 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 Wilson Pawnbroker Bond Cost?
The Wilson Pawnbroker bond costs just $100 per year.
Who is Required to Purchase the Bond?
Wilson requires pawnbrokers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase North Carolina statute 66-387, a pawnbroker is a person who issues loans at interest to individuals that leave their property, as collateral, for the broker to sell or purchases goods for resale from a dealer/trader.
How do Pawnbrokers Apply for a License in Wilson?
Pawnbrokers in Wilson must navigate several steps to secure a business license. Below are the general guidelines, but applicants should refer to the licensing statutes for details on the process.
Step 1 – Contact the City
To obtain a pawnbroker license, applicants should contact the city at (252) 399-2200. The city will walk the broker through the application process, and inform them of how to obtain an application form. Pawnbrokers must submit the following items with their application:
- Statement indicating the net assets or capital the broker will put towards the business as well as an unaudited statement from a CPA verifying the information
- Affidavit by the broker stating they have never been convicted of a felony as well as a certificate from the police department verifying this information
Step 2 – Purchase a Surety Bond
Pawnbrokers must purchase and maintain a $5,000 surety bond
What are the Insurance Requirements for the Wilson Pawnbroker License?
Wilson 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 $5,000 surety bond.
How Do Wilson Pawnbrokers File Their Bonds?
Pawnbrokers must file their completed bond forms, including the power of attorney, with the city. 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 license classification of the entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Entity requiring the bond
- Bond amount
- Date the bond goes into effect
- Date the bond is signed
What Can Wilson Pawnbrokers do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, pawnbrokers in Wilson 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 Wilson?
Wilson does not require pawnbrokers to purchase liability insurance as a prerequisite to obtaining a business 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 Wilson Pawnbroker Customers?
Wilson unfortunately does not provide a public database of active pawnbrokers in the city. We suggest contacting the city to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.