Deferred Deposit Bond

A deferred deposit bond is a license and permit surety bond required by government entities in order to receive a license to provide payday loan services to its consumers.
Key Highlights
- Deferred deposit bonds are also referred to as check casher surety bonds or payday lender surety bonds.
- A deferred deposit bond protects both the company and the consumer.
- These bonds guarantee the company will neither lend consumers more than the statutorily allowed amount nor charge more interest than allowed by law.
How do I purchase a deferred deposit bond?
NFP, the nation's largest and most reliable surety company, is authorized to issue deferred deposit bonds in each of the 50 states. We can provide the best rates for your bond, as well as the fastest issuance, to get your business off and running.
Our short online application makes it easy. Click below to start the application process today.
Deferred Deposit Bond FAQs
A deferred deposit bond is a license and permit surety bond required by government entities in order to receive a license to provide payday loan services to its consumers. It is also referred to as a check casher surety bond or a payday lender surety bond. Deferred deposit companies typically provide customers with small, unsecured, high-interest, short-term cash loans. A deferred deposit bond protects both the company and consumer, guaranteeing the company will neither lend consumers more than the statutorily allowed amount nor charge more interest than allowed by law.
State financial regulatory agencies typically mandate deferred deposit bonds as part of the licensing process to operate a payday lending business. The bond ensures that the lender complies with all applicable laws and protects consumers from unethical practices such as excessive fees, misrepresentation, or failure to disclose loan terms.
The required bond amount varies by state, often ranging from $10,000 to $50,000 or more. The cost to the business is typically 1 to 10% of the bond annual amount, depending on the lender’s creditworthiness and financial history.
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