FOR ALL YOUR SURETY BOND NEEDS.
These surety bonds are general for all states.
Learn more about credit services organization bonds, and apply today. Absolute Surety offers surety bonds nationwide through a convenient online application system.
Most states don’t think that licensing alone is enough to ensure that credit services organizations abide by the law and operate in an ethical and trustworthy manner. That’s why they require applicants for licensing to purchase a bond as part of the licensing process. The bond guarantees that the business will comply with all applicable laws and fulfill its obligations to clients in an ethical manner.
A variety of businesses that exist to help consumers manage and improve their credit fall under the umbrella of credit services organizations. Credit services organization (or CSO) bonds are also called credit repair services bonds, credit counseling organization bonds, and debt management service provider bonds.
Any business applying for a license to operate as a credit services organization in a state that requires such businesses to obtain a license and permit bond must purchase a credit services organization bond before a license will be granted.
A surety bond is a legally binding contract between three parties. The state agency requiring a credit services organization bond is the obligee, the credit services organization purchasing the bond is the principal, and the company issuing the bond is the surety.
A consumer or travel services provider who suffers a financial loss due to the unlawful or unethical actions of the principal may file a claim against the bond. The surety investigates all claims and determines whether they are valid before making payment to the claimant. That doesn’t let the principal off the hook, however. The principal is obligated to repay the claim amount to the surety.
Bonding requirements and the bond amount vary from one state to the next and are established by the obligee. The other key factor is the principal’s creditworthiness, which is determined by the surety based on the applicant’s credit history and personal and business finances. The higher the applicant’s credit score, the lower the premium rate the applicant will pay. Those with good credit may pay as little as 1% of the bond amount as the annual premium for the bond. Applicants with credit challenges may pay as much as 15%.
Use our convenient online system to apply for a credit services organization bond today.
