Deferred Deposit Bond

A deferred deposit bond is a license and permit surety bond required by government entities in order to receive a license to provide payday loan services to its consumers. It is also referred to as a check casher surety bond or payday lender surety bond. Deferred deposit companies typically provide customers small, unsecured, high-interest, short-term cash loans. A deferred deposit bond protects both the company and consumer, guaranteeing the company will neither lend consumers more than the statutorily allowed amount nor charge more interest than allowed by law.