What is a Credit Service Organization Bond?
A Credit Service Organization, also referred to as a Credit Repair Business or Debt Management Service, is an entity that charges a fee to help a buyer achieve an extension of credit in order to keep or improve their credit rating or credit score. In many states a Credit Services – Credit Repair Surety Bond is required to obtain a license as a Credit Services Organization.
A Credit Services – Credit Repair Surety Bond is an agreement between the state government (Obligee), the Credit Services/Credit Repair Organization (Principal), and the Surety Company. The bond guarantees that the Credit Repair Organization will act according to the laws governing the actions of Credit Services/Credit Repairer Organizations and conduct business within industry regulations. The Credit Services/Credit Repair Surety Bond provides protection to both the business and consumer in an event of wrongdoing such as fraud, misrepresentation of services and in general bad business practices. If the Credit Services Organization acts fraudulently or fails to abide by the bond requirements, then the surety company will cover the claim filed against the bond. In effect, the Credit Services/Credit Repair Surety Bond protects buyers from financial loss. The bond also promotes ethical business practices in regards to handling funds.
What is the cost of a Credit Service Organization Bond?
Credit Service Organization surety bonds typically have a minimal cost, sometimes as low as 1%. The process involves taking a look at the business and personal financial history of the applicant. This means that the actual price for the Credit Service Organization bond is determined by the applicant’s credit worthiness and financial strength. Those with better credit will generally be approved at a lower premium.
What if I have bad credit?
JM Surety is proud to offer competitive rates to applicants whose credit profile doesn’t qualify for the preferred rate.
When will I receive my bond?
Once the bond order has been placed, JM Surety will email you an executed bond in minutes. When required by the State, JM Surety will also mail you a hard copy which will be ready to be filed with the state (Obligee).
Why should I choose JM Surety?
JM Surety will always offer you the lowest rates available, won’t charge broker fees, and makes your satisfaction our first goal.