To conduct business in the City of Chickasaw, Alabama, small loan lending companies are required to have a license from the Alabama State Banking Department and post a $1,000 surety bond with the City. The Small Loan Company Bond acts as a financial guarantee that companies offering loans in an amount less than $1,500 will uphold their obligations of their license, stay within the law, and that borrowers will be compensated if the company fails to do so.
The City of Chickasaw requires the Small Loan Company Bond to support the State of Alabama’s initiative to regulate the lending industry, protecting consumers from unfair lending practices and fraudulent behavior.
With Jet, the $1,000 Small Loan Company Bond costs just $100. You are automatically approved, without the need for a credit check or any additional paperwork! See the chart below for the various purchase options.
Jet operates as a direct surety carrier, which means we provide you the bond you need and cut out the middlemen, brokers and agents who can cost you more in commissions and fees.
Applying for your bond is easy with Jet! The whole process takes just minutes, and is done completely online. We will need you to provide some basic information about your business, select your term, complete payment, and you can leave the rest to us.
Once your purchase is complete, Jet will immediately send you a purchase receipt and email you a copy of your bond for your records. We will also file the bond for you with the City of Chickasaw. Remember — you will still need to apply for your small loan license with the Alabama State Banking Department. If you prefer to file the bond with the City of Chickasaw yourself, that option will be available for you at checkout. The original bond paperwork must be sent to:
City of Chickasaw
P.O. Box 11307
Chickasaw, AL 36671
Your bond will remain active until you notify us that you would like to cancel (by sending us an email at [email protected]). We will notify the City of Chickasaw of the cancellation and your liability will end 30 days later. For monthly payments, this part is easy! Your payments will continue during the cancellation period, but once cancellation is final, the payments will cease. If you are paying on our annual or 2-year or 3-year option, Jet will return any premium that is available to you once the bond is cancelled.
To conduct business in Chickasaw, you will need your surety bond to be active for as long as you conduct your lending activity. Through Jet’s monthly payment option, your bond remains active for as long as you continue to make payments from your preferred account; no renewal needed! On our annual and multi-year plans, we will give you plenty of notice for your bond renewal.
Small loan lenders in the City of Chickasaw should be intimately familiar with the fiduciary requirements of their license and any provisions that pertain to them in the Small Loan Act Section 5-18. A few examples of violations of the Act that may lead to a claim are:
If a consumer has a complaint, they can file it with the Alabama State Banking Department or the City of Chickasaw, who will then conduct an investigation. If the complaint is found to be valid, it can escalate into a claim on the Small Loan Company Bond. Furthermore, under the Small Loan Act, violations can result in misdemeanor conviction, fines of $100 to $500, and even prison sentences up to six months.
Notify Jet immediately if an investigation is pending that could result in a bond claim. Jet will help defend you to the maximum extent possible. The Jet team will be counting on your honest communication and transparency with the details of the case to offer you the best possible defense.
If the claim is valid, Jet Insurance Company is obligated to pay out the claim up to the limit of the bond. Consider Jet in this case to be a financial guarantor, providing payment to the City on your behalf. You are still responsible for the actions that resulted in the claim, and will be required to reimburse Jet to reinstate your bond. Failure to keep your bond in the amount required may lead to complications with your license.