Illinois Community Currency Exchange Bond

The bond protects consumers who suffer financial losses due to the currency exchange's failure to properly perform its duties. Common claims include failure to fund money orders, improper handling of customer funds during check collection services, and violations of licensing regulations under the Currency Exchange Act. Consumers can file claims directly with the Currency Exchange Section of IDFPR, and if validated, receive compensation from the bond up to the bond amount.

No, these are two separate bonds regulated under different statutes. The Currency Exchange Bond is required under the Currency Exchange Act (205 ILCS 405) for check cashers and currency exchanges operating at physical locations. The Money Transmitter Bond is required under the Transmitters of Money Act (205 ILCS 658) for businesses that electronically transmit money. Each activity requires its own distinct license and bond from IDFPR.

The standard bond amount is $25,000 per licensed location, with an aggregate maximum of $350,000 per licensee. Ambulatory (mobile) currency exchanges require a $100,000 bond, which can increase up to $250,000 based on outstanding liabilities. Alternatively, members of a statewide association can obtain a blanket bond with a minimum aggregate of $3,000,000 to $4,000,000 covering multiple licensees.