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Mississippi pawnshops need to get a license and a surety bond in order to legally conduct business. Keep reading to learn more about getting licensed and bonded.
Mississippi pawnshops are licensed by the Department of Banking and Consumer Finance (DBCF). The license period is from January 1 to December 31, and applicants applying inside that window do not pay prorated licensing fees. Their application asks for the following information:
- Business name and address
- Business type (LLC, corporation, partnership, etc.)
- Hours of operation
- Website and email address
- Names and contact information for all business partners, directors, or principal officers
- Lists of any office addresses where business will be conducted besides primary address
Mississippi pawnshops renewing their licenses must provide the total number and dollar amount of outstanding pawnbroker transactions as of September 30. This is not a complete list, so be sure to complete the entire application. There are several items applicants must include with their completed application:
- $500 initial license fee or $350 renewal license fee
- $10,000 surety bond
- Fingerprints of applicant and controlling members of the business, if applicable
- Contact list
- Certificate showing six hours of continuing education
Recent changes to the Mississippi Pawnshop Act require pawnbrokers to obtain six hours of continuing education each year. Pawnbrokers can fulfill this requirement by attending a class offered by the Mississippi Pawnbrokers Association.
Once completed, the application must be mailed in:
Department of Banking and Consumer Finance ATTN: Pawnshop Division P.O. Box 12129� Jackson, MS 39236-2129
If the application needs to be overnighted, the DBCF provides an alternate address:
Department of Banking and Consumer Finance ATTN: Pawnshop Division 4780 I-55 North, 5th Floor� Jackson, MS 39211
The surety bond required of Mississippi pawnshops ensures their adherence to the Pawnshop Act. One important provision of the Act instructs pawnbrokers to keep detailed records of each transaction. If a pawnbroker fails to record a transaction and subsequently sells or disposes of those goods, they can face fines of up to $1,000 and one year in prison for the first offense, and forfeiture of their surety bond.