What is an Illinois Consumer Installment Loan Act Bond?
Know why this surety bond matters to your business and how to easily apply for one!
Under the Consumer Installment Loan Act, every association, partnership, corporation, or LLC that has a desire to engage in the business of making loans that will not be more than $40,000 should be licensed.
One of the most important prerequisites of a consumer installment loan license is a surety bond.
The surety bond is a legal promise to the Director of the Division of Financial Institutions of the State of Illinois in regards to the full compliance of the licensee to the relevant statutes and regulations.
It will also be conditioned that non-compliance of the bonded licensee to the Consumer Installment Loan Act will be a ground for a bond claim. In the event of wrongdoing committed by the bonded licensee, the Obligee of the surety bond will file a claim to retrieve the amount lost.
This requirement complies with Section 205 670/2 of the Illinois Compiled Statutes.
What is the Consumer Installment Loan Act Bond amount?
The bond amount is $25,000.
If you have a stellar credit score, you will be eligible for a low bond premium. Bond premium starts at $100.
How can I get a Consumer Installment Loan Act 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 your credit score.
To avoid any delays, make sure that you have gathered the right information needed before submitting.
Once the underwriting process is done, we will immediately issue your bond and send it to you right away!
What are the surety bond conditions?
- The surety bond agent or company should be authorized to conduct business in the State of Illinois
- The surety bond should be made payable to the Director of the Division of Financial Institutions of the State of Illinois
- The bonded consumer installment loan licensee should comply with the provisions of the Consumer Installment Loan Act, as well as the rules and regulations of the Division of Financial Institutions of the State of Illinois
- If the bonded consumer installment loan licensee commits a violation, the Obligee will be eligible to file claims against the surety bond
Secure your license! Get bonded! Call us HERE!