Colorado Supervised Lender License Bond Overview
- Purpose: To protect borrowers from fraud or theft
- Who Needs It: Anyone that makes high interest consumer loans in Colorado
- Regulating Body: The Colorado Department of Law, Consumer Protection Section
- Bond Amount: $15,000–$25,000
- Minimum Price: 0.75% of the bond amount; credit-based
What Is a Colorado Supervised Lender License Bond?
Colorado supervised lender bonds ensure clients are compensated for any damages caused by a licensed lender that breaks laws, engages in fraud, or acts unethically.
Who Needs a Supervised Lender License Bond?
Any company or person that makes, collects, or takes assignment of consumer loans in Colorado with an annual interest rate greater than 12% is considered a supervised lender and must be licensed and bonded.
The required bond amount is based on your total annual loan volume for the previous calendar year — or projected volume for new licensees. However, there is a $15,000 minimum and $25,000 maximum bond coverage.
How Much Does It Cost to Get a Bond?
Colorado supervised lender bonds cost 0.75–10% of the total bond coverage. For instance, the minimum $15,000 bond starts at $112 for one year of coverage. Apply for a free, personalized quote.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Colorado Supervised Lender License Bond Work?
A supervised lender surety bond creates a legal contract between you and three other parties.
| Bond Party | Description |
|---|---|
| 1) Principal | The bonded supervised lender licensee |
| 2) Obligee | The Colorado Department of Law, Consumer Protection Section |
| 3) Surety | The issuing surety provider |
By filing the bond, you promise to comply with all provisions of the Uniform Consumer Credit Code (UCCC) during your supervised lender license term.
You also promise to pay any amounts owed to the UCCC Administrator and any court judgments owed if a client takes legal action. The surety backs your financial obligation if you default.
How Do I Get My Bond?
We make the supervised lender bonding process seamless and fast. Follow these steps:
- Apply for a quote.
- Receive your personalized rate within one business day or less.
- Sign documents and complete the bond purchase.
We’ll email your official bond documents right after processing your order. File the bond along with your license application.
How Do I Renew My Bond?
These bonds expire each year. You’ll need to pay the renewal premium to extend your initial bond for another year of coverage.
We’ll stay on top of this for you by sending our email and text reminders during the renewal period!
How to Get a Supervised Lender License in Colorado
Follow these steps to become a licensed supervised lender:
- Complete the license application form
- Purchase and file a surety bond
- Prepare a personal affidavit
- Complete the license verification form
- Pay the $1,600 license fee
You’ll need to submit an annual report by July 15 each year to maintain the license. If you have multiple locations, you’ll need a separate application and bond for each branch.
