City of Detroit Pawnbroker Bond Guide
If you’re applying for a pawnbroker or jewelry license in Detroit, Michigan, you’ll need this surety bond.
Bond Overview
- Purpose: To provide financial recourse for any customers harmed by a fraudulent pawnbroker
- Who Needs It: Pawnbrokers and second hand jewelry sellers seeking a license in Detroit
- Regulating Body: The Detroit Consumer Affairs Department
- Required Coverage: $200 for jewelry, $3,000 for pawnbroker
- Premium Rate: $100 flat rate
Learn all about the bond requirements and process in this guide.
What Is a City of Detroit Pawnbroker or Second Hand Jewelry Bond?
City of Detroit secondhand sales bonds ensure that pawnbrokers and jewelry resellers comply with government regulations and protect clients and customers from potential fraud or theft.
For example, if something happens to property being held as collateral, the surety bond can compensate claimants.
How Much Do Pawnbroker Bonds Cost in Detroit, MI?
A $3,000 City of Detroit pawnbroker bond costs a flat rate of $100. The $200 second hand jewelry bond uses the same bond form and also costs $100.
No application or credit check is required. Click below to buy your bond in minutes!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Do I Get My Bond?
With SuretyBonds.com, you can buy your Detroit pawnbroker or second hand jewelry dealer bond instantly online. Just enter your information and checkout in minutes.
We’ll mail you the bond via your preferred shipping method. Be sure to file the bond with the Consumer Affairs Department as instructed.
If you have any questions, call our friendly surety experts at 1 (800) 308-4358 for assistance.
How Does a City of Detroit Pawnbroker Bond Work?
A pawnbroker bond creates a legal contract between three parties:
- Principal: You, the second hand dealer filing the bond
- Obligee: The Detroit Consumer Affairs Department requiring the bond
- Surety: The provider issuing the bond
This holds you financially responsible for upholding local ordinances and license regulations.
If you break the bond terms, harmed parties can file claims. The surety will pay valid claims up to the bond amount, but you are ultimately responsible for refunding the surety.
How Do I Renew My Bond?
These bonds expire annually. To renew your pawnbroker bond, simply pay your renewal invoice when prompted.
We’ll begin contacting you by phone and email 90 days before the expiration date.
