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What is a Payday Loan Bond?

A payday loan bond is a form of insurance that is required of anyone selling payday loans. These lenders offer small loans to cover expenses until you are paid. A borrower will usually have to provide some proof that he or she has a job and regular income. The payday loan bond protects you and your money from illegal or unethical actions on the part of the lender.

Before lenders purchases a  surety bond from an agency, they must submit themselves to a credit check, have their application approved, and go through other screening processes.

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