Michigan Deferred Presentment Service Provider Bond
AmeriPro Surety Bonds | 844-589-9732
Surety Bond; Purpose
Michigan businesses which are deferred presentment service providers offer consumers the ability to obtain money upfront, in exchange for a check which is to be deposited at a subsequent date.
Such businesses are licensed by the state’s Office of Financial Aid and Insurance Services.
It is the Michigan Deferred Presentment Service Transactions Act which forms the body of legislation governing your industry.
A condition of licensing is that you obtain a $50,000 surety bond. Your surety bond is a financial guarantee of your compliance with all provisions of Act 244 of 2005, as amended.
Licensing and Surety Term
Both your surety bond and license have an expiration date of September 30th of each year.
Qualifying and the Premium
Qualifying for the Michigan deferred presentment service provider bond includes completing a short surety bond application — which our agency will begin with you over the phone — but which you will both need to sign and have witnessed, and undergoing a review by an underwriter.
The underwriter review procedure includes a credit check inquiry.
Good credit is required for approval; and the rate offered is $375 for a full year term from September 30th through September 30th. This surety bond, since it expires on September 30th, may be prorated as to premium depending on the date of purchase.
Upon approval of your surety bond and payment of the premium, our agency issues your bond to you immediately.
Since this bond is filed through NMLS, the Nationwide Mortgage Licensing System, our agency can facilitate the electronic filing on your behalf, or, you may file your surety bond on your own.
If you choose to have us file for you, you’ll need to provide us with your access to NMLS.
Premium Prepayment Options
The deferred presentment service provider bond may be prepaid up to 3 years which offers a savings over annual renewal.
Assuming a few 2 or 3 year term (again, the premium may be prorated), the premium prepayment option and savings are as follows:
- If prepaid for 2 years, the premium is $675, a $75 savings;
- If prepaid for 3 years, the premium is $975, a $150 savings.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit, Court, probate, and other surety bonds in Michigan and all 50 states.
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