South Carolina Earned Wage Access Bond

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Why is a South Carolina Earned Wage Access Bond Required?

Earned wage access companies in South Carolina are required to get a license. This ensures they're registered with the state and to provide regulations for how these businesses should operate.

The Department of Consumer Affairs can't personally police every company they issue licenses to. That's the purpose of the surety bond.

It acts as a penalty for any company that purposefully commits fraud against their customers. And a source of repayment for the damages of those fraudulent acts.

And it's unfortunate but every year there will be a small number of businesses in South Carolina that chose to purposefully commit fraud.

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

In the event of an earned wage access company committing fraud, the hard consumer or consumers can make a claim against the earned wage access surety bond for the financial damages they suffered.

The catch is, any one claim or the sum total of multiple claims is capped by the bond amount which is set in law by the South Carolina Department of Consumer Affairs.

So to recap, the surety bond provides a penalty to discourage companies from committing fraud.

What is the South Carolina Earned Wage Access Bond Amount?

South Carolina makes this easy, with a bond amount of $30,000.

How Much Does a South Carolina Earned Wage Access Bond Cost?

The price to purchase an earned wage access surety bond will be a small fraction of the $30,000 bond amount. But there is no fixed price, it will be custom based on the business ownership.

At a high level, all surety bonds are underwritten by a surety, an insurance company that chooses to expose themselves to the earned wage access industry.

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 they will quote a rate and this rate multiplied by the $30,000 bond amount is your specific price.

Even though each surety uses the same factors for pricing, they all have different rules and risk tolerances.

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

We're Surety Bonds Direct, a specialized surety agency. We have a network of A-rated sureties that allow us to price shop for our customers. This ensures they pay the lowest possible price.

Remember, each surety has different risk tolerances meaning rates can vary by 1%, 2%, even over 3% from surety to surety.

Here is a table so you can see how easy it is to save hundreds of dollars by getting a rate that is 2% lower.

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

Even if you're not ready to purchase your bond now, get pricing for it today.

• You'll know the exact price so you can plan better
• All price quotes are valid for a 30 day period
• When you're ready to purchase you can do it nearly instantly

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

It only takes one business day to prepare your bond and we'll mail it to you so you can turn it in with your license application.

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.

We manage your bond for you so as your renewal date approaches, we make paying the renewal premium easy.

This bond is considered continuous. All this means is the original bond you file with the South Carolina Department of Consumer Affairs remains active.

Earned Wage Access Bonds And Getting Your South Carolina Business License/Registration

Here are the main steps for getting your application completed. These are all listed on the application itself.

• Complete the application
• Pay the $1,000 application fee
• Provide a copy of the privacy of information about your customers
• Provide a copy of the contracts you'll use, the terms and conditions, and any other disclosure documents
• Attach copies of your business procedures for dealing with customer questions and complaints
• A fee schedule including at least one option that has no cost to the user
• Copies of the your business formation documents
• The original $30,000 surety bond signed by an owner

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.