The California Deferred Deposit Surety Bond is required by the State of California, Department Business Oversight for any entity wishing to obtain a California Deferred Deposit License.
The Department of Business Oversight requires a license for any of the following:
- Any person that offers, originates or makes a deferred deposit transaction, arranges a deferred deposit for a deferred deposit originator, acts as an agent for a deferred deposit originator, or assists a deferred deposit originator in the origination of a deferred deposit
- Any person located in California, who plans to engage in the business of making deferred deposit transactions over the internet only to residents in other states
- Any person located outside of California who plans to engage in the business of making deferred deposit transactions over the internet to residents in California and to residents in other state
How can I get a California Deferred Deposit License?
In order to obtain a Deferred Deposit License in California, you need to file the following with the CA Dept. of Business Oversight:
- An application for each location, which should include fingerprint information for the applicant and the partners and all key persons involved in the operation
- An application fee of $200 and an investigation fee of $100
- Financial statements reflecting a net worth of at least $25,000
- A California Deferred Deposit Surety Bond amounting to $25,000
- Note: this bond must be in place prior to obtaining a license, and must be in force continuously to maintain a license.
What is the purpose of a California Deferred Deposit Surety Bond?
It is important to understand this bond is not insurance. Unlike insurance, the bond does not protect the licensee, but rather the customers of the licensee. If a customer believes the licensee was operating unethically or illegally, they can make a claim on the bond. If settled, the surety company that issued the bond will pay out the claim, but the licensee (also known as the “principal”) must pay back the surety company in full.
Officially, the bond is used for the recovery of expenses, fines, and fees levied by the Commissioner as the result of a licensee’s noncompliance with the requirements of the California Deferred Deposit Transactional Law.
Where can I get a California Deferred Deposit Surety Bond?
To obtain a California Deferred Deposit Surety Bond, all you need to do is take a few minutes to fill out our free online application! Within one business day one of our licensed agents will contact you with a no-obligation quote for the price to obtain your bond (the “premium”). Once any necessary paperwork is signed and the premium payment is processed, your surety bond will be shipped to you via USPS Priority Mail (overnight shipping options also available).
The surety bonding experts at Surety1 are here to help you get bonded quickly and reliably. We work with over a dozen “A” rated surety markets to ensure we find you the lowest rate for your bond. We are also licensed in all 50 states and maintain an A+ rating by the Better Business Bureau!