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Alabama Consumer Credit Act Surety Bond

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Consumer Credit Agencies are required to be licensed in Alabama. A part of the licensing process includes obtaining a security, such as an Alabama Consumer Credit Surety Bond.

The State of Alabama Banking Department administers consumer credit licenses and has oversight of business compliance, as well as handling of consumer complaints and auditing. According to the Alabama Consumer Credit Act Chapter 155-2-2, requires that a license for each proposed location be obtained from the State Banking Department prior to providing consumer loans or taking assignments of consumer credit contracts unless otherwise exempt from licensing.

Surety Bond and License Requirements:

  1. Payment of the license fee and completion of the Application for License.
  2. Provide a list of all offices, agencies, or locations in Alabama in which the applicant intends to do business.
  3. Have a business net worth of more than $25,000.
  4. Maintain a mortgage call report (MCR).
  5. Submit unaudited financial statements to the Department
  6. A minimum $25,000 and up to $75,000 surety bond is required. The surety bond amount is based off of loan volume. Instead of a bond, a cash deposit may be made to the state in the amount equal or greater to the amount of the required bond.
  7. Business owners with 10% or more ownership and executive officers must submit a CBC.
  8. All qualified individuals and indirect owners will have a credit report check for license consideration.
  9. Include a complete list of all owners, officers, employees, agents, and others that are paid for services.
  10. Answer the Disclosure Statement and for any "Yes" answer, provide applicable orders or documents.

How Much Does an Alabama Consumer Credit Bond Cost?

The premium you pay for an Alabama Consumer Credit Agency Surety Bond is dependent on credit and the bond amount required. Rates start as low as $100 with good credit.

Did You Know?

License fees for a Consumer Credit License is $500 for the registration fee, $100 application fee, and $120 NMLS processing fee.

Related Links:

Alabama Consumer Credit Act Regulations
Alabama NMLS Check Off List

More Surety Bond Questions?

Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.

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