Alabama consumer credit license bonds.
From $100.
Alabama's State Banking Department, which licenses consumer lenders and takers of consumer credit contracts under the Alabama Consumer Credit Act (the Mini-Code, Ala. Code § 5-19-22), can require a licensee to post a surety bond in an amount it sets. The premium is 0.6% of the bond amount, $100 minimum.
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How much does an Alabama consumer credit license bond cost?
0.6% of the bond amount, from $100. Enter your amount in the calculator for the exact price.
Three steps. One sitting.
No underwriting queue for the Alabama consumer credit license bond — enter your amount, pay, and file with the Banking Department. Here is the whole thing:
Apply online
Business details, the bond amount your license requires, an effective date, and a term. No credit check up to $250,000. Above that, the carrier may run a soft pull, which never affects your score.
Pay & e-sign
The premium is 0.6% of the bond amount, $100 minimum — priced at checkout, so the bond issues the moment you pay. Your executed bond and power of attorney generate on the spot.
File with the Banking Department
Your executed bond arrives by email, ready to submit with your consumer credit license filing. Wet-ink original mailed on request.
What it is and who needs it.
What the bond actually guarantees
Alabama's Consumer Credit Act — the Mini-Code — requires a license from the State Banking Department to make consumer loans or take assignments of consumer credit contracts in the state. Under Ala. Code § 5-19-22, the Department can require an applicant or licensee to post a surety bond, in an amount the Department determines — notably for creditors extending credit secured by real estate, where the bond can stand in lieu of the net-asset requirement.
It's a three-party arrangement: you (the principal), the surety carrier, and the State of Alabama (the obligee). The bond runs in favor of the state for the use, benefit, and indemnity of any person who suffers loss from a breach of contract, an obligation arising from it, or a violation of the law by the licensee.
It is not insurance for you — if the surety pays a claim, you repay the surety. The bond has to stay on file for the license to stay in good standing; we track the term and send renewal notices 60 and 30 days out. Confirm your required amount on your Banking Department correspondence.
You need this bond if you're
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The premium covers a one-year term from the effective date you choose.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
File with the Banking Department. Your executed bond arrives by email, ready to submit with your consumer credit license filing. Wet-ink original mailed on request.
What sets the price
The premium is 0.6% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.
No credit check up to $250,000. Above that, the carrier may run a soft pull, which never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, issued instantly.
Submit the application with the bond amount your license requires — the executed bond is generated the moment you pay, ready to file.
Start the application →Common questions.
Other Alabama bonds.
Price and requirements checked on the carrier’s application, . Page updated .
Finish your consumer credit license today.
0.6% of the bond amount, $100 minimum, issued the moment you pay. Free until issued.