License & Permit
Payday Lender Bond
A license bond that a payday or deferred presentment lender files with the state to get or keep its lending license.
- Required by
- State banking or financial institutions departments
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond promises the state regulator (the obligee) that the lender will follow the state's payday lending law and meet its obligations to borrowers. A borrower or the state can claim if the lender charges illegal fees, breaks the law, or fails to pay what it owes.
Who needs it
- Payday lenders
- Deferred presentment or deferred deposit providers
- Check cashers that make deferred deposit loans
What the underwriter looks at
- Owner credit
- Business financial statements
- Number of locations
- Licensing and complaint history
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
How much bond does a payday lender need?
It depends on the state. Michigan, for example, requires a $50,000 surety bond, and licensees with 20% or more common ownership can share one $50,000 bond. Other states set different amounts or tie the amount to locations.
Is this the same as a deferred deposit bond?
Yes. States call the same loan a payday loan, deferred presentment, or deferred deposit. The bond follows whatever name the state's law uses.