For payday loan companies, this surety bond guarantees fair lending practices when issuing loans to the general public.

1. PAYDAY
LOAN BOND
FOR PAYDAY LOAN COMPANIES, THIS SURETY BOND
GUARANTEES FAIR LENDING PRACTICES WHEN ISSUING
LOANS TO THE GENERAL PUBLIC.

2. What is a
Payday Loan
Bond?
A payday loan bond is often required by most states to
ensure that your company follows fair lending
practices when issuing loans.
They are intended to protect the borrowers from any
misconduct on the part of the payday loan company.
Your state may require you to purchase this bond
before they issue your business license.

3. 3 PARTIES
INVOLVED
The payday loan bond works like any surety bond. There are three main entities:
OBLIGEE
The agency requiring the purchase
of a payday loan bond. In this case,
the state.
PRINCIPAL
The individual or business that
must obtain the payday loan
bond.
SURETY
The underwriter of the bond,
providing the financial backing
for the payday loan bond.

4. 3 PARTIES
INVOLVED
If you or any employee working with your payday loan company fails to meet the regulations and terms set in the payday loan
bond, then a claim can be filed against the bond.
If the investigation of the claim finds that it is valid, then the Surety Company will make a payment to the complainant, such
as the state or the borrower.
You will then need to repay the amount that is paid out from the bond. The maximum amount paid out of the claim will be no
more than the total bond amount.

5. How does it
benefit your
Business?
Being a bonded company is a great way to give your
customers confidence in doing business with you.
They will feel that they are being protected and that if
something goes wrong, they will be compensated.

6. How much is
a payday loan
bond?
Your state will determine the minimum amount of bond
coverage a payday loan company must obtain.
Your premium will be a percentage of the bond amount.
For example, if your bond is $10,000 then you can expect to
pay anywhere from $100 and up for your payday loan bond,
depending on qualifications.

7. SOURCE:
https://suretybondauthority.com/payday-loan-bond/
800-333-7800
w w w . s u r e t y b o n d a u t h o r i t y. c o m