In New Jersey, a pawnbroker is defined as any person who lends money on the deposit or pledge of person property or who purchases personal property on condition of selling it back at a stipulated price. To conduct business as a pawnbroker in New Jersey, individuals are required to obtain a license from the New Jersey Department of Banking and Insurance (DBI). Anyone who is granted a pawnbroker license is required to submit a $1,000 surety bond to the DBI. This pawnbroker surety bond guarantees that the principal (pawnbroker) complies with all provisions of Title 42, Section 22 of the New Jersey Statutes governing the operation of a pawnbrokers business, and provides protection against unethical and unlawful business practices by the principal. If a harmed party files a valid claim against the bond, the surety will pay damages up to the penal sum of the bond to resolve the claim. All damages paid out by the surety must be reimbursed by the principal, including any reasonable attorney fees.
Pacific Surety has rates as low as $100 annually for New Jersey Pawnbroker Surety Bonds. Feel free to complete our simple application to obtain an approval within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.