The Ohio Division of Financial Institutions (DFI) mandates that anyone providing short-term loans is licensed and holds a Short Term Lender Surety Bond. The bond, offered by Jet Insurance Company, is a tool used by the DFI which guarantees restitution should you fail to follow regulations, leading to financial losses of the DFI or Ohio’s citizens.
Choosing Jet as your surety company ensures a smooth process and affordable rates. Jet also provides claims defense, should it be needed.
The bond limit starts at $100,000 unless you are a nonprofit, then the minimum bond limit is $50,000. After submitting your application, the Division of Financial Institutions will let you know what bond amount is required.
The cost is based on your personal credit (don’t worry, it’s a soft credit check) and will be a small percentage of the bond amount.
The Ohio Division of Financial Institutions has the best interest of Ohio’s public in mind when creating and managing regulations for the various chartered financial institutions and consumer finance companies in the State.
Under the DFI, short term lenders must be licensed and maintain a license bond for the lifetime of their operations in Ohio. The reason for the bond, and Jet’s purpose, is to provide a means of reimbursement when a licensee has committed a violation of the Short Term Loan Act which has caused someone financial hardship. This may happen, for example, if the licensee decides to charge an interest rate over 28% per year.
Short-term loan requirements can be reviewed under the Ohio Revised Code Section 1321.39.
Our application takes you through each question step-by-step only asking for the information necessary to get you a quote, such as your social security number (for the soft credit check) and bond limit.
Once submitted, Jet will review the application details and get back to you if any additional information is needed (like financial statements). A quote will be emailed to you when approved and you can purchase the bond online. After payment, you will receive a copy of the bond and your receipt.
Of course! But first, you must authorize us to do so within the Nationwide Multistate Licensing System (NMLS). You can review the NMLS electronic surety bond filing information and look at the image below to see the process.
Yes, Jet allows you to cancel your bond when it’s convenient for you. Send us an email at firstname.lastname@example.org when you’re ready to cancel and we will proceed with the request in the NMLS.
The Division of Financial Institutions keeps the bond active for 30 days upon receipt of the notice of intent to cancel. During those 30 days, the liability is still present for both you and Jet, which must be calculated into any refunds. Jet will return any unused balance to you at that time.
Claims can be filed for two years after the termination date of the bond. You will not need to pay for the bond during this time, but it’s important to note that even though the surety bond is no longer active, you can still be liable for claims.
The Ohio Short Term Lender Bond lines up with the license which expires on December 31st. But don’t worry, Jet sends out an invoice before the expiration date so you can make a renewal payment to keep the bond active if you plan to keep your license. As long as Jet receives payment for the new bond term we will ensure your bond stays active.
Any changes to the bond must be done in the NMLS by Jet. Please let us know of any updates to the bond immediately, such as an increased or increased bond limit.
Offering short-term loans while complying with the Short Term Loan Act (Ohio Revised Code Sections 1321.35 to 1321.48) and Chapter 1301:8-11 of the Ohio Administrative Code should help you avoid any bond claims. Even if you mistakenly violate the regulations, the DFI often allows you to remedy the situation before charging you with severe penalties.
Claims can occur for a variety of reasons, including:
Other prohibited acts can be found in Section 1321.45 of the Revised Code.
Aside from the Division of Financial Institutions, any aggrieved person(s) can file suit against you to recover damages. Civil fines, revocation of the license, and a bond claim are all possibilities when you violate the regulations.
Upon receiving notice of a claim, Jet will collect any details and documentation from you surrounding the dispute. Jet investigates to ensure no false claims slip through the cracks.
If the claim is legitimate, Jet will remit payment to the claimant(s) and you are then responsible for paying Jet back. The reason you must reimburse Jet is that the surety bond is an extension of credit that only pays out for acts of fraud or negligence.