Kansas Earned Wage Access Bond

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Why is a Kansas Earned Wage Access Bond Required?

The Kansas Office of the State Bank Commissioner is responsible for the surety bond license requirement. The earned wage access license is a newer requirement as more and more states are starting to require this surety bond.

Surety bonds are required because they are the only tool a licensing agency has to hold the businesses they're issuing licensees to accountable to the law.

When you successfully get a license, it's essentially the same as the state vouching for you. It's a clear signal that the public can trust you to provide the services and do so correctly.

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

Examples of earned wage access 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 a business experiences these or similar actions they can make a claim against the earned wage access surety bond for the financial damages. However, any one claim or the sum or multiple are capped by the surety bond amount.

The Kansas Department of the State Bank Commissioner has set the bond amount to $100,000.

We'll talk about how much this will cost in the next section.

Just remember, if this is your first time getting a surety bond, it's a tool used to prevent fraud and hold all licensed businesses accountable to the law.

How Much Does the Kansas Earned Wage Access Bond Cost?

As we've mentioned the bond amount is the max dollar amount available to customers if a licensed business commits fraud.

The price you pay will be a percentage of this $100,000 bond amount.

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

Similar to purchasing any type of business insurance contract the following 3 factors will be a determining factor:

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

Using these factors, a surety will determine a rate based on their own personal calculations. This rate multiplied by the bond amount is the price you'll pay for a bond term.

Because every surety uses their own metrics to determine a rate, you can easily save hundreds if not thousands of dollars when you purchase your earned wage access surety bond.

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

We're Surety Bonds Direct, a specialized surety agency. We work with a network of A rated sureties to find our clients the lowest possible price.

We do this every day and the sureties don't share why, but different sureties routinely come back with rates that can be 1% to 4% different.

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 examples for this $100,000 bond amount.

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 get pricing and you're ready to purchase your bond, you only need to complete an online order form. We take care of everything else from this point forward.

Our issuance team will get to work to prepare your bond using the:

• Correct bond form for Kansas
• 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 Kansas 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.

In Kansas you'll need to have this bond active for as long as you're in business and for two years after you close your business.

So as your bond's expiration date approaches you'll get an email and phone call from your dedicated bond specialist to renew the bond.

They will have pricing ready to go. This is also the time to make any changes to the bond, which is rare.

This bond is considered continuous. This just means after you pay your renewal premium, you're done you won't have to file new paperwork with the NMLS.

Earned Wage Access Bonds And Getting Your Kansas 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'll need to upload your business financial statements no more than 90 days prior to the date of the application.

Your financial statement only needs to prove that you are solvent. There are no hard net-worth requirements.

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.

Provide your certificate of good standing and if you're a company with a primary location outside of Kansas you'll need to provide a certificate of authority.

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

Management Chart

You must outline the business:

• Directors
• Officers
• Managers
• Resident agent

This will include outlining the compliance reporting and internal audit structure.

Other requirements include:

• Outlining ownership interests
• Providing the business plan and marketing plan

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.