Michigan — Consumer Financial Services Licensee Bond
Michigan's Consumer Financial Services Act generally requires at least $500,000 in bond or letter-of-credit security. Identify the company's Class I or Class II authority and actual activities first: money transmission has a separate statutory amount provision.
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- Recorded state
- Michigan
- Bond type
- Consumer Finance / Lender Bond
What this bond does
Provide the security required under the Consumer Financial Services Act for the applicant's authorized financial activities, independently of its net-worth and licensing obligations.
- Who needs it
- Michigan Consumer Financial Services Class I or Class II applicants and licensees arranging the security accepted by DIFS for their actual business activities.
- Who it protects
- The bond is payable to the commissioner for the benefit of Michigan's people. It secures the Act's compliance and qualifying payment obligations to the commissioner and specified customers; only the commissioner files claims on the bond for the bureau and eligible individuals.
Your bond option
This is the option on record for this bond.
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The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.
Sources
- Michigan DIFS: Consumer Financial Services (opens in a new tab)Checked October 27, 2026
- Michigan Consumer Financial Services Act: Sections2–9 (opens in a new tab)Checked October 27, 2026
Have these ready
- Identify Class I or Class II and each activity the company will actually conduct.
- Obtain DIFS's accepted form and required sum, including any separate money-transmission provision.
- Match the legal company, NMLS record, requested security period and execution instructions.
- Complete licensing and accepted bond filing separately from checkout.
Questions about this bond
Is $500,000 the amount for every possible activity?
It is the Act's general minimum, not a universal answer. Section 487.2056 directs money-transmission applicants to a separate amount provision. Match the actual DIFS request and activities.
Can a customer file directly against this bond?
The Act specifies that only the commissioner files bond claims on behalf of the bureau and eligible individuals. The commissioner determines and prioritizes claims; the bond is not general loss insurance.
Does net worth replace the security?
No. Net worth and bond or accepted letter-of-credit security are separate requirements under the Act.
Can a Class II license support all Class I activities?
No. Class II excludes the specified check-sale and mortgage-servicing activities. Confirm the actual license authority before choosing security for a proposed business activity.