The Department of Financial Protection and Innovation is most commonly referred to as the acronym DFPI. The DFPI serves the general public and consumers against businesses engaged in financial transactions. The DFPI regulates a variety of financial products, services, and professionals. They are also in charge of licensing and license regulation of the California Finance Lender Licensees, California Deferred Deposit Lender Licenses (commonly known as payday lenders), mortgage loan originator Licenses, state securities law regulations, and the regulation of certain state-chartered financial institutions such as credit unions.
To help cover all of these departments, in order to receive certain licenses, the DFPI requires a surety bond. These bonds help protect the general public in the event that the license holder breaks the terms of the license. The surety bond helps cover any financial losses that may have occurred.
Common surety bonds that the Department of Financial Protection and Innovation requires include:
California Collection Agency Bond
Also called Debt Collector Bonds, a California Collection Agency Bond is required by any agency that applies for a CA-DFPI Debt Collection License. The bond amount must be at least $25,000 and must be obtained before a license is granted. These types of surety bonds help protect the general public from any illegal or unethical behaviors that may result in any losses or damage.