Payday lenders conducting business in the Commonwealth are regulated by the State Corporation Commission.
Legal statutes relating to payday lenders are found under Chapter 200 of the Virginia Administrative Code.
At least one $10,000 surety bond is required as a condition of licensing with the state. AmeriPro Surety Bonds offers they payday lender bond as both a new (first time applicants) and renewal surety bond.
The Virginia payday lender bond is a $10,000 surety bond amount, per office. The surety bond has a maximum amount of $50,000. Therefore, any payday lenders with 5 or more offices in the Commonwealth are required to furnish the Commission with a $50,000 surety bond.
The pricing for the payday lender surety bond will be determined by:
Applicants for the Virginia payday lender will pay 2% of the bond amount required. Therefore, a $50,000 surety bond will have a premium of $1000. Our agency only works with those applicants who have good credit, so we are able to provide you with the pricing ahead of time. You'll know from the outset what to expect.
The Virginia payday lender bond is issued for active for one year from the date of issuance. Ideally, the bond should coincide with the dates for your licensing issued by the Commonwealth so as to prevent any gaps in bond coverage.
Options may also exist to prepay the bond for several years, offering a savings over year-to-year renewal.
Using a $50,000 surety bond amount, the prepayment amount and savings are as follows:
While the Virginia payday lender bond is required of your company as a condition of licensing, its benefit is for the residents of the Commonwealth; also, the state Commission. The surety bond serves as a financial guarantee that your company will be in compliance with all rules and regulations, additions, and amendments relating to payday lending in the state.
The bond protects against acts of fraud, theft, malfeasance or misfeasance committed against a consumer or the Commission. The surety bond financial guarantees also extend to wrongdoing committed by any employees, managers, or agents of your payday lending company.
As principal for this surety bond, you are responsible for any claims paid against your bond by the surety.
AmeriPro Surety Bonds is a surety bonds only agency. We also provide other license and permit, contractor, court, and fiduciary surety bonds throughout the Commonwealth of Virginia.
Our agency also provides surety bonds nationwide.
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