Click Here to Apply for your Illinois Payday Loan Reform Act Licensee Bond 

All payday lenders operating in Illinois need to purchase an Illinois Payday Loan Reform Act Licensee Bond. This is a type of surety bond and is required by the Illinois Department of Financial and Professional Regulation (IDFPR). The surety bond serves as a financial guarantee to consumers that the lender will comply with the state’s payday loan laws and regulations. The bond must be in the amount of $50,000 for each location where loans are made, up to a maximum bond amount of $500,000. The surety bond has a mandatory expiration date of 12/31 each year.Illinois Payday Loan Reform Act Licensee Bond

If a payday lender violates the Illinois Payday Loan Reform Act, a consumer who has been harmed can file a claim against the bond. If the claim is successful, the surety company that issued the bond will pay the consumer for their damages.

Here are some examples of payday lenders that need to purchase an Illinois Payday Loan Reform Act Licensee Bond:

  • Payday loan storefronts
  • Online payday lenders
  • Check cashing businesses that offer payday loans
  • Pawnshops that offer payday loans
  • Credit unions that offer payday loans

Any person or entity that offers or makes a payday loan in Illinois, regardless of whether they have a physical storefront or operate online, is required to purchase a licensee bond.

How to get a Illinois Payday Loan Reform Act Licensee Bond

At we make it easy to obtain this surety bond. Our simple, three step process is:

  1. Complete the easy to navigate and secure online application1
  2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day. 2
  3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Illinois Payday Loan Reform Act Licensee Bond will be shipped to the bond applicant.
1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.
2- Subject to underwriter approval, based on aggregate surety bond exposure, additional underwriting information may be required

The cost of the bond is usually between 1% and 3% of the bond amount, subject to a minimum premium and fees of $150 to$250. Surety1 will shop its many markets to procure the right price at the right terms. is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, is the premier online provider of surety bonds nationwide since 2003.

How to get a Payday Lender License in Illinois?

All the following are the requirements of the Illinois Department of Financial and Professional Regulation, Division of Financial Institutions, Consumer Credit Section.

  • Application Form
  • A copy of all organization documents required to be filed with the Illinois Secretary of State and a copy of the filing of the assumed business name with the appropriate County Clerk’s office if a sole proprietorship.
  • “Supplemental Application” as provided in the application packet and credit report of:
    • the proprietor, if the applicant is an individual
    • every partner, if the applicant is a partnership
    • the President, Secretary, Executive and Senior Vice Presidents, Directors and individuals owning more than 25% of the corporate stock, if the applicant is a corporation; and
    • the manager, if the applicant is a limited liability company
  • Most recent year-end and quarter-end financial statements, or opening statements for new corporations, completed according to Generally Accepted Accounting Principals and certified by original signature of the applicant, President, or manager of a limited liability, or partner thereof.
  • The balance sheet must contain only business-related items and demonstrate a net equity (total assets minus total liabilities) of $30,000.
  • A request for authorization of any other business to be conducted at the licensed location
  • Appointment of Attorney-in-Fact for Service of Process
  • Photographs of both the inside and outside of the proposed location
  • Business Plan detailing the nature, amount, and term of loans to be made and types of security that will be taken
  • A list of all states in which the applicant is licensed to issue Payday Loans. If the said license has been withdrawn, refused, canceled, or suspended in any other state, please state the specifics surrounding this event
  • Information Form as provided in the application packet
  • A check in the amount of $1000 forwarded to the Illinois Department of Financial and Professional Regulation to serve as a license fee. Fees are not refundable.
  • Original $50,000 Illinois Payday Loan Reform Act Licensee Bond in favor of the Director of the Division of Financial Institutions.

The license application is processed through the Nationwide Mortgage Licensing System (NMLS).

Contact Surety1







How to Get Your Illinois Payday Loan Reform Act Licensee Bond

  1. Complete an online application. It’s free and no-obligation.
  2. One of our surety experts will contact you with a firm quote and an agreement to sign.
  3. Provide payment and your signed agreement, and then you will receive your Surety Bond!

If you have any questions, please call us at 877-654-2327.

How to Get Bonded

1. Apply Online
Using our Free & Secure Application
2. Get Your Free Quote
Applications are No-Obligation
3. Get Your Bond
Most Bonds are Approved in 1-2 Business Days

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Surety1 was founded in 2003 and helps thousands of clients find the best prices on their surety bonds. We take pride in our work so that we can give you great service. Learn more about Surety1.

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