What is the South Dakota Money Lender Bond?
The South Dakota Money Lender Bond is a concrete guarantee directed by the state’s Department of Labor and Regulations to those who engage in the venture of lending money as mandated by the provisions of the South Dakota Codified Law 54-4. It also includes those who create, hold, purchase and acquire retail installment contracts. This bond is a definite safety measure from money lenders who charge their borrower-clients with an annual fee that is over the prescribed annual rate of 36 percent.
The South Dakota Money Lender Bond is likewise a strong precautionary stratagem against money lending companies that commit the following unfavorable acts: 1) employ threats of violence and harm while collecting, 2) publishing and/or giving out of borrowers’ names to credit reporting organizations, 3) claims of being lawyers or representing government, 4) threatening borrowers of arrest or legal action, 5) charging other types of fees other than the liability of the borrower, 6) asking for post-dated checks, and 7) threatening borrowers of confiscation of property.
Why do you need the South Dakota Money Lender Bond?
You need the South Dakota Money Lender Bond because you want to be regarded as a business owner of prudence and respectability. Simultaneously, this bond is an indispensable method to earn potential clients’ interest in your business and gain existing customers’ loyalty. Owning this bond makes you a trustworthy moneylender who deserves a highly regarded niche within the financial industry.
More details about the South Dakota Money Lender Bond
It is imperative that the South Dakota Money Lender Bond accompanies the filled-up licensing application form and be submitted in a procedure that is adequate and acceptable to the Director.
It must be issued by a surety company that is eligible to operate within the state of South Dakota.
In cases where the licensee has violated provisions of the applicable laws relating to money lending activities, the cumulative accountability of the chosen surety organization issuing this bond shall not go beyond the prescribed bond amount.
What is the cost of a South Dakota Money Lender Bond?
The South Dakota Money Lender Bond shall be in the amount of $10,000 for the first license and $2,500 for each supplementary license. Premium payments for this bond are dependent on the money lender’s credit history, current credit score, and present-day financial status. If a money lender has an excellent credit mark and decent business performance, a lower premium rate can be availed of.
How do I get the South Dakota Money Lender Bond?
Getting a South Dakota Money Lender Bond is simple. Contact a genuine surety bond company for rapid processing and be afforded professional treatment. Choose the one who can provide you prompt and efficient service.