Consumer Loan Company Bond Guide

What Are Consumer Loan Company Bonds? 

Consumer finance loan company bonds are a type of surety bond required for licensing to protect borrowers from fraud or theft. They can apply to loan brokers, licensed lenders, supervised lenders and more. 

Most states require these bonds to ensure clients are compensated for any damages caused by a consumer loan company or provider that breaks licensing laws. 

If you operate a CSO or payday loan business, visit our Credit Services Organization Bond Guide or Payday Loan Bond Guide instead for more information. 

How Much Do Consumer Loan Company Bonds Cost?

Consumer loan company bond premiums cost a small percentage of the total coverage amount, typically 0.75–10%. For example, $50,000 North Dakota money broker bonds start at a 1% rate, or $500, for applicants with strong credit. 

Each state and license type requires different bond amounts. Select your location on the map below to find the bond you need and get a free quote today. 

SuretyBonds.com works with the top surety providers nationwide to provide the best available bond rates with no added brokerage fees. 

How Do Consumer Loan Company Bonds Work? 

Consumer lending license bonds protect customers by creating a legal agreement between three parties: 

1. Principal: The loan broker or loan company purchasing the bond
2. Obligee: The government entity requiring the bond for licensing
3. Surety: The provider issuing and backing the bond

Through this agreement, the obligee and consumers are protected from financial harm because the surety backs the obligation of the principal. If any license laws are broken, harmed parties can file a claim to the surety for reimbursement. However, the principal (lender) is ultimately responsible for repaying the surety company. 

How to Get a Consumer Loan Company Bond 

SuretyBonds.com provides the fastest and easiest way to get your consumer finance loan company bond. Some bonds are available for instant online purchase, while others require an application for personalized pricing. 

Follow these quick steps to get your bond: 

1. Select your state
2. Find the bond type and amount you need
3. Submit a quick online application
4. Receive your free quote within one business day
5. Purchase your bond and sign documents

Typically, you will receive a digital or physical copy of your consumer loan bond which you must file with the government agency requiring the bond for licensure. However, in some cases, we can upload your bond directly to the Nationwide Mortgage Licensing System (NMLS). 

Your SuretyBonds.com account manager will help guide you through the process. Call 1 (800) 308-4358 if you have any questions. 

How Do I Renew My Consumer Loan Company Bond?

Most consumer lending license bonds expire annually and require renewal. You’ll receive email and phone notifications starting 90 days before your expiration date. 

Be sure to pay your renewal invoice and file any additional paperwork, if instructed. Learn more about surety bond renewals here. 

How Do I Update My Consumer Loan Company Bond Form? 

If you need to make any small adjustments to your official bond form, such as name or address, contact us at [email protected] outlining the requested update. If possible, we’ll issue a bond rider document to amend your bond free of charge. 

Can I Get Bonded With Bad Credit? 

It is possible to get a consumer loan company or loan broker bond even without excellent credit. With our bad credit bonding options, we’ll work to match you with a provider at the best rate on the market. In some cases, we may request additional financials for underwriting.