Companies making consumer installment loans must act according to the provisions found under the Illinois Consumer Installment Loan Act (CILA).
The Act requires you to obtain a $25,000 surety bond. The surety bond’s obligee, that is, the entity requiring the bond, is the Illinois Department of Financial and Professional Regulation.
AmeriPro Surety Bonds offers this bond for timely filing with the Department.
The purpose of your Illinois consumer installment loan bond is to protect your customers --- the consumer public --- from any violations of the Act.
Specifically, the bond protects against acts of fraud, theft, criminal malfeasance or misfeasance, committed by a consumer loan company, its owners, agents, or employees, in the course of their professional conduct.
The bond serves as a financial guarantee for Illinois consumers that should they be able to convincingly demonstrate financial harm, they may recoup their losses up to the bond amount (this would be $25,000 in total – not per person).
But your surety bond is not an insurance policy. It does not protect you.
In the present context, this means that should a claim be filed and paid on your surety bond, it is your legal responsibility as “the principal” to reimburse the surety for all costs involved in the satisfaction of that claim.
While the standard consumer installment loan bond amount is $25,000, the Director of the Department of Financial and Professional Regulation may increase the bond size for any one company, should they judge circumstances require it.
In those cases, you would have 30 days to comply with the additional surety bond amount.
The premium for this surety bond will be determined by a standard application and credit score.
Applicants with good credit may pay as little as 1.5% annually for this bond; however, the amount you will be required to pay will largely be determined by your credit score.
For those with lower credit scores, AmeriPro Surety Bonds will work to find you the best surety bond pricing.
Once the bond has been issued, it is good for one year. The bond renews on an annual basis, and as a condition for maintaining your license in good standing, must always be in force.
AmeriPro Surety Bonds is a surety bonds-only agency which provides license and permit, contractor, court, and fiduciary bonds throughout Illinois.
We also provide surety bonds nationwide.
We are committed to making your bond experience professional, pleasant, and efficient.