Arizona Consumer Lender Bond | AmeriPro Surety Bonds | 844-589-9732
In Arizona, a consumer lender is defined as one who makes a loan to a consumer, that is, a resident of the state of Arizona, for $10,000 or less.
The fact that with finance charges the amount of the loan may exceed $10,000 is not a determining factor for purposes of the definition .
Rather, it is the principal amount which defines a consumer lender in the state.
Arizona consumer lenders are governed by the Arizona Department of Financial Institutions.
Licenses end on June 30th and begin on July 1st of each year.
Original applications for a consumer lender have a non-refundable fee of $1500; renewable licenses have a non-refundable fee of $1000.00.
In order to transact business as a consumer lender in Arizona according to the definition provided above, a $200,000 surety bond must be filed with the Arizona Department of Financial Institutions.
Upon issuance of the bond, it can be filed electronically with the NMLS.
The Arizona consumer lender bond, frankly, is a larger surety bond when compared with most others.
It helps to have a good understanding of what exactly the surety bond does for the lender and why it is required.
A surety bond has three parties:
The principal, which is the business or persons who are purchasing the Arizona consumer lender bond. In effect, they are placing a financial guarantee that they will abide by all rules and regulations in Arizona consumer lending.
The bond, therefore, protects others, not the consumer lender, from acts of fraud, theft, criminal malfeasance in the performance of their duties as a consumer lender.
Consumer lenders may want to familiarize themselves with prohibited acts as defined by the Arizona state legislature.
The second party is the obligee which is the Arizona Department of Financial Institutions. They require this surety bond which is issued on their behalf for their benefit and the benefit of the Arizona consumer.
The third part is the surety which is the company issuing the surety bond to the principal on behalf of the obligee. The surety has the financial wherewithal to pay the claim on this surety bond should a legitimate claim be filed.
Unlike an insurance policy, however, any claims, fees, or monies paid by the surety must be fully reimbursed by the principal.
AmeriPro Surety Bonds is your agent and advocate with the surety company.
While the Arizona consumer lender bond is $200,000, applicants will only pay a small premium percentage of this amount.
The premium of this surety bond will be determined by a soft-credit inquiry (this does not affect your credit score).
We will always work to find the best pricing available for you, regardless of your credit situation.
AmeriPro Surety Bonds is a surety bond-only agency which provide license and permit, contractor, and fiduciary surety bonds throughout the great state of Arizona.
We also provide surety bonds in all 50 states.
Please call AmeriPro Surety Bonds today at: 844-589-9732
