PayDay Lender Surety Bond

A PayDay Lender Surety Bond is a license and permit surety bond required by government entities to receive a license to provide payday loan services to its consumers. PayDay lenders provide consumers small, unsecured, high interest, short term cash loans. Payday lenders typically operate by allow the consumer to write them a post-dated check for the amount borrowed plus interest which the lender cashes on the date of the check, a date typically soon after their next payday. The bond guarantees that the payday lender will not lend consumers more than the statutorily allotted amount and will not charge more interest than allowed by law.

These bonds are also known as Deferrred Deposit surety bonds and Check Casher surety bonds.