What is an Oklahoma Pawnshop License Bond?
Pawnshops serve a dedicated function in consumer finance. They accommodate those end-users whose credit requirements are not catered to by the typical financial establishments. In general, there are two common denominators about pawnshop patrons – first, these end-users have high credit risk, therefore, are unable to borrow without collateral; second, these are the one who typically needs very small value loans that conventional lenders are incapable or reluctant to provide on a secured basis.
Considering the commodities involved in many transactions and because money is involved in every pawnshop deal, a huge amount of trust is involved. Combined with the enormous quantity of security necessary in keeping the high-value commodities saved for safe-keeping, it is imperative that every pawnbroker has a Pawnshop License Bond in possession.
The Oklahoma Pawnshop License Bond is an incontestable warranty signifying pawnbrokers' strict compliance with all the provisions stated within the Oklahoma Pawnshop Act, all stipulated under Chapter 37, 59 O.S., Sections 1501-1515.
The bond likewise serves as a defense against pawnbrokers who engage in underhanded activities or carry out business transactions in a disgraceful approach and deliberately fail to pay their taxes, charges, and fines.
Why do you need an Oklahoma Pawnshop License Bond?
You need the Oklahoma Pawnshop License Bond because your pawnshop business is vital to you as a business owner and its operation are fundamental to the economy. The bond can serve as an excellent marketing tool for you to stand out among your peers within the industry.
With this bond, your clients and other stakeholders will look up to you as a pawnbroker of reliability, someone who can be trusted, and a genuine professional.
More details about the Oklahoma Pawnshop License Bond
This bond also serves to protect customers and the state against pawnbrokers who commit the following illegal acts:
- accepting pledges or purchase a property from an individual, regardless of gender under the age of eighteen (18);
- failing to exercise meticulous care in safeguarding pawned goods from loss or damage;
- failing to return pawned commodities to a customer upon payment of the full amount due to the pawnbroker on the pawn transaction, unless a hold order has been placed on the items by a certified peace officer or the pawned goods are in the guardianship of law enforcement;
- making any insurance charges in connection with a pawn transaction;
- accepting as collateral or buying merchandise from a person who is not able to confirm identity by either a state-issued identification card or by a decipherable fingerprint of right or left index finger at the back of the pawn transaction copy.
How much does an Oklahoma Pawnshop License Bond cost?
The Oklahoma Pawnshop License Bond amount is $ 5,000. The bond’s premium amount is dependent on the pawnbroker’s credit history, standing in the community, reputation within the pawnshop industry, and whether or not the pawnbroker has been previously convicted of a crime.
For those who have a dismal credit score or questionable reputation, a higher premium rate will likely be charged.
How do I get an Oklahoma Pawnshop License Bond?
Getting an Oklahoma Pawnshop License Bond is effortless. Choose a reliable surety company that you know can serve your specific needs, can address your concerns without delay, and can respond to whatever challenges you will encounter in the process. Give them a call NOW