Indiana Earned Wage Access Bond

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Why is an Indiana Earned Wage Access Bond Required?

This surety bond is used by the Indiana Department of Financial Institutions to prevent purposeful fraud by companies they are issued an earned wage access license to.

When you're issued a license, the Indiana Department of Financial Institutions is signaling that you are a qualified and trustworthy business capable of providing these services.

And because the Department is responsible for so many other licenses and responsibilities, they use the surety bond as the only tool available to hold you accountable.

It's unfortunate but every year there will be a small number of businesses that purposefully commit fraud to make more money.

Examples of fraudulent actions can include:

• Charging hidden or excessive fees
• Reporting too early to credit bureaus
• Advancing funds that have not been earned yet
• Using misleading advertising
• Implementing overly aggressive re-payment practices

If business and their employees have been financially harmed by fraudulent actions, they can make a claim against the surety bond for near immediate financial compensation. However, the maximum claim is capped by the bond amount which we'll cover next.

Bottom line the surety bond provides a penalty to discourage companies from committing fraud.

What is the Indiana Earned Wage Access Bond Amount?

The bond amount in Indiana is custom based on the following rule:

The greater of...

$100,000

Or the daily provision of proceeds to Indiana consumers as calculated for the most recent completed calendar.

The max is $250,000.

Just to recap, the bond amount that's right for you is the maximum amount any one claim or the sum of multiple claims can be in the event of purposeful fraud.

During each bond renewal period, which we'll cover soon, will be recalculated based on this rule. So as your business grows or consolidates, you can expect your bond amount to change and so will your renewal premium.

How Much Does an Indiana Earned Wage Access Bond Cost?

Surety bonds, at a high level, are underwritten by a surety or a commercial insurance company.

These surety companies will primarily look at the following 3 factors when assessing an applicant:

• Personal credit of the business owner or owners
• Any credit or lending experience
• Prior bond claims if any owner has been licensed in the past

From these factors each surety provides a rate. These rates multiplied by your bond amount will be the price you pay.

You can always work to improve your credit, but it's getting a lower rate that will make the biggest and most immediate difference.

How To Save Hundreds Even Thousands Of Dollars Buying an Earned Wage Bond

We're Surety Bonds Direct, a specialized surety agency. Our focus is to help companies find the lowest possible rate for their surety bond.

And we help companies every day obtain the surety bond they need to run their business. Unfortunately sureties don't give us their internal reasons, but rates can vary by 1%, 2%, even over 3% from surety to surety.

And for a larger bond amount like the earned wage access bond, this can mean you saving thousands of dollars when you purchase your surety bond.

Let's look at an example using the $100,000 energy broker bond requirement..

The rates used in the table are from really good to average.

You can get your pricing today and know exactly what you will have to pay to meet this license requirement.

And if you're not ready to purchase, all quotes are guaranteed for 30 days so there is no rush or pressure if you're not ready to purchase.

Go request your price quote today. Remember, this is free information for you. There's no obligation to purchase. Quotes are good for 30 days.

If you prefer to speak with a bond specialist, you can call 1-800-608-9950.

What Do You Do After You Purchase Your Earned Wage Access Surety Bond?

When you're ready to purchase your bond, you just need to complete an online order form or complete the purchase over the phone if you prefer.

Once your payment is complete, our issuance team will get to work to prepare your bond using the:

• Correct bond form
• Required signatures and seals
• Power of attorney

The licensing process for an earned wage access license is handled through the National Multistate Licensing System or NMLS.

Your surety bond will need to be e-filed in the NMLS and we handle this for you.

How Long Does an Indiana Earned Wage Access Surety Bond Last?

Every surety bond will expire. And for an earned access wage bond, the bond term is 12 months from the activation date you choose when you purchase your bond.

Remember, it's during this renewal period that you'll have to reassess your financials to see if your bond amount will change.

When you have that number, we will handle the rest for you. As a Surety Bonds Direct customer, you're assigned your own bond specialist to manage your bond.

As your renewal date approaches, your bond specialist will contact you to remind you of the expiration date and have renewing pricing ready to go (unless we need to change the bond amount).

This bond is considered continuous. All this means is the original bond you file with the Indiana Department of Financial Institutions. Even if we need to update the amount of the bond, you will not have to have a brand new bond issued.

Earned Wage Access Bonds And Getting Your Indiana Business License/Registration

If you haven't discovered it yet, the NMLS checklist compiler is a great resource for the steps to obtain your license.

Just select your state and license on the left and you'll get an actual checklist of the steps. At a high level these steps include:

Business Financial Statements

You need to provide business financials prepared by a third party CPA from within the last 12 months.

These financial statements must show a minimum company net worth of $100,000 and liquid assets (cash or easily convertible securities) of $150,000.

If you're a brand new company you only need to provide an initial statement of condition.

Business Formation Documents And Trade Names

You must provide copies of your business formation documents from the Secretary of State and if you are using any trade names, a list of all registered names.

You must also provide the state issued certificate of good standing.

Qualifying Individual and Registered Agent

The qualifying individual is the person or persons who must have two years of verifiable experience in financial services. They must be actively engaged in the operations of lender as well.

The registered agent is the person managing the office location.

Primary and Non-Primary Contact Employees

Primary contact employees include:

• Primary company contact who can respond to all licensing and examination requests
• Primary consumer complaint contact who responds to any complaint against the company

The non-primary contact employees include:

• Attestation contact
• Exam billing
• Licensing
• Consumer complaint (regulator)
• Legal

Criminal Background Check

You will have to have all of the following complete an FBI criminal background check.

• Owners who have an ownership stake or 10% or more
• Executive officers
• Indirect owners who own at least 10% of the company
• All individuals who are listed as the Qualifying Individual

Other requirements include:

• Outlining management and the office structure
• Providing the business plan and marketing plan
• Outlining office internal policies and staffing policies
• Even providing samples of all documents like applications and agreements

When you're ready to purchase your surety bond, we are ready to help you find the lowest possible price. Click here to have us find you the lowest price or call us at 1-800-608-9950.