What is a Maine loan broker bond?
According to the Bureau of Consumer Credit Protection, before obtaining a license to run a credit services organization in Maine, you must purchase a $25,000 surety bond for each branch location.
This bond ensures credit services organizations (CSOs) follow the law and abide by industry standards. If a CSO acts illegally or unethically, the injured party may file a claim against the bond – up to $25,000.
Get Your Loan Broker Bond:
Who needs this bond and why?
The Maine Bureau of Consumer Credit Protection requires all loan brokers in the state to be licensed and bonded. Without a license and bond, you can’t legally perform services to the public. Additionally, every employee (individual loan officer) must be registered at their employment location.
The Bureau defines a loan broker as “any person that provides or offers to provide the following services for compensation:”
- Improving someone’s credit rating, record, or history
- Obtaining or arranging extensions of credit for consumers
- Giving advice or assistance to consumers regarding the first two points
- Serving as a facilitator of refund anticipation loans or refund anticipation checks
See the Maine Loan Broker License Description for more information.
How do you obtain a loan broker license in Maine?
Here are some of the steps you must take to obtain your loan broker license. You can find a complete checklist on the Nationwide Multistate Licensing System (NMLS).
- Undergo a background check.
- Pay a fee.
- Obtain a surety bond.
- Hire a qualifying individual.
- Complete an application.
- Upload a business plan.
Frequently Asked Questions
Yes, you must renew your bond and loan broker license annually. Ensure you renew your bond and license before they expire each year so they remain active. Loan broker licenses in Maine are active from January 1 to December 31. Your bond should run concurrent with the license period (or continuously).
The easiest way to avoid claims is to follow the laws in your state for your industry. Working professionally, addressing consumer complaints, and resolving them quickly can help prevent claims.
How to Get a Loan Broker Bond in Maine
ZipBonds offers the fastest and most secure option for getting the surety bonds you need. Our all-digital platform is intuitive and straightforward. Apply online or call us at (888) 435-4191 to speak with an agent. Most of our bonds are approved and processed immediately from our site.
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.