Take Our 3 Question Survey
Note: We make changes based on responses.
Summer 2017 Newsletter
Check Casher/Seller and Payday Lender Industry Update
|License Types||As of July 2017||As of July 2016|
|Check Casher - Main Office||108||105|
|Check Casher Branch Office||257||456|
|Check Seller Main Office||1||1|
|Payday - Main Office||24||27|
|Payday - Branch Office||57||70|
Electronic Surety Bonds for Payday Lenders
The Department recently announced the expansion of Electronic Surety Bond (ESB) functionality in NMLS to Check Cashers with the Small Loan Endorsement applicants and licensees. The launch of the use of ESB for this license type starts July 17. Applicants with a surety bond requirement must use the ESB and licensees can start converting their paper bonds to ESB after that date.
ESB functionality was rolled out in NMLS in late 2016. It enables a surety bond to be issued and maintained electronically on NMLS. Benefits of ESB include the elimination of paper bond documents, reduction of postage costs and lag time delivering bond materials, and increasing transparency for bond actions like cancellations and reinstatements.
Current Check Casher with Small Loan Endorsement licensees are required to convert their existing paper surety bond into an electronic bond on NMLS by July 1, 2018. The Department and many surety companies strongly encourage licensees to complete the conversion as part of the bond renewal. The following steps are required to convert a paper bond to ESB:
- Contact the agent who provides your surety bond to ensure they are set up (entitled) on NMLS
- Grant authority to your surety bond issuer in NMLS; the surety bond issuer must start the bond conversion process
- Once the converted bond is ready, it is delivered to licensees electronically in NMLS; the bond must be electronically signed by an authorized individual
- Bond must be designated “Marked Ready” before it will be delivered to the Department
Several resources are available at NMLS Electronic Surety Bond including quick guides, ESB training, and the ESB Adoption table. Licensees with questions or who experience problems with ESB should email DCS@dfi.wa.gov.
*ESB does not apply to Check Casher licensees because that license type doesn’t have a surety bond requirement. ESB also doesn’t apply to Check Casher with Small Loan Endorsement who currently use an alternative to a surety bond to meet the bond requirement.