Mississippi Consumer Loan Broker Bond Guide
If you’re applying for a consumer loan broker license in Mississippi, you’ll need this surety bond. Learn all about the bonding process and get a free quote in this guide.
Bond Overview
- Purpose: To ensure brokers uphold the Consumer Loan Broker Act
- Who Needs It: All consumer loan brokers in Mississippi
- Regulating Body: The Mississippi Department of Banking and Consumer Finance
- Required Coverage: $25,000; $25,000 per additional location
- Premium Rate: 0.8–10% of the bond amount
What Is a Mississippi Consumer Loan Broker Bond?
This bond holds brokers financially responsible for upholding the Mississippi Consumer Loan Broker Act.
If you cannot satisfy unsettled debts and liabilities or otherwise cause harm, claimants can file suit on the bond.
How Much Do Consumer Loan Broker Bonds Cost in Mississippi?
Mississippi consumer loan broker bonds cost 0.8–10% of the bond amount. For example, the $25,000 minimum bond coverage starts at $200–$250 for applicants with excellent financials.
Apply now to get your free quote within one business day.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Mississippi Consumer Loan Broker Bond Work?
A loan broker bond creates a financial guarantee between three parties:
- Principal: The consumer loan broker filing the bond
- Obligee: The Mississippi Department of Banking and Consumer Finance requiring the bond
- Surety: The provider issuing the bond
The principal must uphold their obligation to the obligee, and the surety offers financial backing for the principal.
As the loan broker, if you break the bond terms, the Department or harmed clients can file claims against the bond to reimburse damages. The surety pays valid claims, but you must repay the surety in full.
Who Needs a Consumer Loan Broker Bond?
In Mississippi, a consumer loan broker includes any non-exempt party who obtains consumer loans or credit cards for borrowers from third-party lenders for a fee.
All licensed consumer loan broker bond businesses need a $25,000 surety bond. If you have additional locations, you must get $25,000 coverage per location.
Note: If you're applying for a small loan license, we also issue the separate Small Loan Regulatory Law and Small Loan Privilege Tax Law Bond.
How Do I Get a Consumer Loan Broker Bond?
With SuretyBonds.com, you can get your Mississippi Consumer Loan Broker Act bond easily online. Just complete these three steps:
- Request a free quote on this page
- Complete the DocuSign agreements
- Pay for the bond online or over the phone
After purchase, we’ll upload the bond directly to the NMLS on your behalf.
How Fast Can I Get My Bond?
We deliver quotes within one business day or less and issue most bonds same-day when purchased before 4 PM CST.
How Do I Renew My Consumer Loan Broker Bond?
Mississippi consumer loan broker bonds expire annually. Pay your renewal invoice when prompted to extend your bond term for another year.
The surety can cancel the bond by providing 60-days notice to the Commissioner of Banking and Consumer Finance.
How to Become a Loan Broker in Mississippi
The Mississippi Department of Banking and Consumer Finance oversees loan broker licensing. Follow these steps to apply:
- Meet the eligibility requirements
- Create an NMLS account
- Purchase a $25,000 surety bond
- Pay the $300 license fee
- Submit the online application along with all supporting documents
- Pass a criminal background check (if required)
Take the next step to becoming a licensed consumer loan broker by purchasing your surety bond today!
