What is an Illinois Payday Lender License Bond?
Know the who, what, and how of this surety bond for payday lenders!
Any person may not perform the following services unless he or she applies for a license as a payday lender:
- Makes a payday loan
- Buys a partial or whole interest in a payday loan
- Become an agent for a third party that deals with payday loans
- Organize a payday loan for a third party
Payday lenders are required to show financial proof that they will be able to compensate their clients for any damages that the clients will suffer from the potential wrongdoings of the licensed payday lender.
The financial proof will be a surety bond. The surety bond should be submitted to the Illinois Department of Financial and Professional Regulation.
It will also be conditioned that the licensed payday lender will obey the Payday Loan Reform Act of the State of Illinois.
What is a Payday Lender License Bond amount?
$50,000 – the bond amount for each location where the loan will be made
$500,000 – the maximum bond amount for a payday lender
Those who have excellent credit scores will be eligible for a very low bond premium, or just 1% of the bond amount!
How can I get a Payday Lender License Bond?
You can easily get this surety bond from us! We will guide you through the entire process. We’ll make sure that you will understand what you are getting into.
Here’s how to do get bonded:
- You have to send an application to us. If you are ready to do that now, you may APPLY HERE!
- After we have received your application, we will ask you to submit the necessary information needed for the underwriting process. These are the following:
- Your financial capability
- Your business or job performance history
- Your credit score
An expert underwriter will carefully evaluate all three to attain the best credit decision possible. To avoid any delay, the information that you should submit should be organized and concise.
- Your surety bond will be issued and sent to you!
What are the surety bond conditions?
- The surety bond agent or company that will issue the bond should be authorized to conduct business in the State of Illinois.
- The licensed payday lender must conform to the provisions of the Payday Loan Reform Act of the State of Illinois, as well as the rules and regulations of the Illinois Department of Financial and Professional Regulation.
- If the licensed payday lender commits a violation, the aggrieved party will be eligible to file a claim against the surety bond
- The bond will run concurrently with the license period.
have any questions? Contact us HERE!