What is a Wisconsin Licensed Pawnbrokers Bond?
Licensed pawnbrokers operating in the State of Wisconsin need to post a surety bond as part of the license and permit process to be able to legally open shop.
A Licensed Pawnbrokers Bond guarantees that they will comply with all applicable state laws, statutes, and regulations in relation to handling daily pawning and pawning brokerage activities, such as providing secured loans, assessing jewelry, trading items, managing a customer’s collateral, or charging amount interests.
Licensed pawnbrokers engage in a transaction of purchase, receipt, or exchange of any secondhand article or secondhand jewelry with any person under 18 years of age. They take physical possession of pawned or sold items and may recover the loan value through the direct sale of the items. They do not mark defaulted loans on a customer’s credit report, though. The rate of interests and duration of time is governed by law.
Why do you need a Licensed Pawnbrokers Bond?
By acquiring this type of surety bond, you regard your business as credible and trustworthy.
If the pawned property has been damaged or if the broker proved to engage in fraudulent activities in relation to pawn brokering, the bond will ensure financial compensation to the claimant.
The bond is conditioned that your business is compliant with all state, city, or municipal regulations and you will not engage in charging massive interest rates or selling items before the agreed date.
If there is a validated claim, the Surety will pay out the money owed to the state, city, or municipality. You, as the Principal, will have to reimburse the Surety the full amount paid out.
What is the bond amount?
The applicant must provide a surety bond of $500 for guaranteeing compliance with state, city, or municipal ordinances and regulations relating to licensed pawnbrokers.
The cost of the bond varies, depending on your financial status and credit score. It is usually a percentage of the bond amount, from 1% to 5%.
How do I obtain a Licensed Pawnbrokers Bond?
Here’s a step-by-step bonding process that we have made easier so that you can get your bond in no time:
You must first apply for this type of surety bond. If you are ready to do this now, you may APPLY HERE!
Our expert surety bond agent will guide you through the entire process – from the time you have applied until the bond is issued to you.
Next, you will be asked to submit a few important information that our underwriter will need to assess the following:
- Your job or business history
- Your credit score
- Your financial strength
- Your copy of the bond form
To avoid any delays, make sure that you have gathered the right information needed prior to submitting.
Once the underwriting process is done, we will immediately issue your bond and send it to you right away!
Need to get bonded? Contact us now!