Albuquerque Pawnbroker Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: $5,000
- Who Needs it: All pawnbrokers operating in Albuquerque, New Mexico
- Purpose: To protect the public from financial harm if the pawnbroker violates the terms of their permit
- Who Regulates Pawnbrokers in Albuquerque: The City of Albuquerque
Background
Albuquerque Code of Ordinances 13-6-4 requires all pawnbrokers operating in the city to obtain a permit from the City of Albuquerque. The Albuquerque City Council enacted the permitting requirement to ensure that pawnbrokers engage in ethical business practices. To provide financial security for the enforcement of the permitting law, pawnbrokers must purchase and maintain a $5,000 surety bond to be eligible for a permit.
What is the Purpose of the Albuquerque Pawnbroker Bond?
Albuquerque requires pawnbrokers to purchase a surety bond as part of the application process to obtain a pawnbroker permit. The bond protects the public from financial harm if the pawnbroker fails to comply with the regulations set forth in Albuquerque Code of Ordinances 13-6-6. Specifically, the bond protects the public if the pawnbroker engages in any acts of fraud, breaches any consumer contracts, or fails to maintain all required records. In short, the bond is a type of insurance that protects the public if the pawnbroker violates the terms of their permit.
How Can an Insurance Agent Obtain an Albuquerque Pawnbroker Surety Bond?
BondExchange makes obtaining an Albuquerque 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.
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Is a Credit Check Required for the Albuquerque Pawnbroker Bond?
No, a credit check is not required for the Albuquerque 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 Albuquerque Pawnbroker Bond Cost?
The Albuquerque Pawnbroker bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Bond?
Albuquerque requires pawnbrokers to purchase a surety bond as a prerequisite to obtaining a pawnbroker permit. Pawnbrokers must obtain a separate permit and bond for each pawn shop location they plan to open. To paraphrase Albuquerque Code of Ordinances 13-6-3, a pawnbroker is a person who issues loans 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 Permit in Albuquerque?
Pawnbrokers in Albuquerque must navigate several steps to obtain a permit. Below are the general guidelines, but applicants refer to the application instructions or visit the City of Albuquerque’s website for details on the process.
Permit Period – All Albuquerque Pawnbroker Permits expire on July 1 of each year and must be renewed before the expiration date.
Step 1 – Obtain Zoning Approval
Prior to submitting an application, pawnbrokers must first get zoning approval from the city’s Planning Department. The department will sign and return the application to the pawnbroker after approval, and pawnbrokers can contact the Planning Department here.
Step 2 – Obtain Approval from the APD
Pawnbrokers must have their applications approved and signed by the Albuquerque Police Department. The department will perform a mandatory criminal background check to determine the pawnbroker’s eligibility for a permit, and once approved, they will return the application to the pawnbroker. Applicants can contact the Albuquerque Police Department here.
Step 3 – Purchase a Surety Bond
Pawnbrokers must purchase and maintain a $5,000 surety bond.
Step 4 – File with the City Clerk
Pawnbrokers must mail their original bond form to the City Clerk’s Office at the following address:
City of Albuquerque
P.O. Box 1293
Albuquerque, NM 87103
Pawnbrokers may also deliver the bond in-person to the City Clerk’s Office. Once filed, pawnbrokers must obtain approval and a signature from the City Clerk before continuing in the application process.
Step 5 – Submit to the Treasury Division
After obtaining all required approvals, pawnbrokers may submit their application by mail to the Treasury Division at the following address:
Attn: Pawn Brokers Application
Treasury Division, City of Albuquerque,
PO Box 17, Albuquerque, NM 87103-0017
Pawnbrokers must ensure they have completed the application in its entirety and include a copy of the original bond with the application. Brokers also have the option to deliver the application in person to the Treasury Division’s Office in City Hall.
Step 6 – Pay the Permit Fees
Once the application is submitted, pawnbrokers must pay a $250 permit fee online to the City of Albuquerque. Brokers may pay by credit/debit card or ACH, and the city must have a valid email on file to submit payment. Contact the Treasury Division for assistance.
How do Albuquerque Pawnbrokers Renew Their Permit?
To renew their permits, pawnbrokers should submit a completed renewal application to the Treasury Division at the following address:
Attn: Pawn Brokers Application
Treasury Division, City of Albuquerque,
PO Box 17, Albuquerque, NM 87103-0017
Pawnbrokers must obtain all required approvals and pay an annual $250 permit fee before being issued a renewal permit. All Albuquerque Pawnbroker Permits expire on July 1 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Albuquerque Pawnbrokers?
Albuquerque 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 $5,000 surety bond.
How Do Albuquerque Pawnbrokers File Their Bonds?
Pawnbrokers should mail their completed bond forms, including the power of attorney, to the City Clerk’s Office at the following address:
City of Albuquerque
P.O. Box 1293
Albuquerque, NM 87103
Brokers must also submit a copy of the original bond form with their permit application to the Treasury Division. 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
- Pawn shop business name
- Surety company’s name
- Date the bond goes into effect
- Notary acknowledgments
What Can Albuquerque Pawnbrokers do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, pawnbrokers in Albuquerque must ensure that they:
- Do not engage in any acts of fraud
- Faithfully honor all consumer contracts
- 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 Albuquerque?
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 Albuquerque Pawnbroker Customers?
Albuquerque unfortunately does not provide a public database of active pawnbrokers in the city. We suggest contacting the City of Albuquerque to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.