Credit service organization bond cost
The Ohio Department of Commerce regulates credit service organizations, or CSO’s, within the state and requires all entities providing credit services to submit a surety bond before receiving a license. The department has determined that a surety bond in the amount of $50,000 will suffice for licensure. Because the bond amount is relatively high, applicants must submit to a review of their credit by an underwriter before they are approved for the bond. Once approved, the underwriter will determine an appropriate premium—typically a small percentage of the total bond amount—that the applicant must pay to have the bond issued. Applicants with exceptional credit applying for a credit service organization bond in Ohio may be approved for as little as $500—or just 1% of the total bond amount!
Although an applicant with some credit issues may find their initial premium to be slightly higher, it is important to remember that the bond is subject to underwriting each year. Therefore, as credit improves, the annual rate may decrease. Conversely, if an applicant’s credit worsens, they may be faced with a higher premium.Give us a call at 888.610.4474 or submit a bond request to begin our fast and easy bonding process.
Why this bond
Credit service organizations in the state of Ohio are required to submit a surety bond to receive their license. The bond guarantees that the organization will comply with all rules and regulations pertaining to CSO’s—specifically sections 4712.01 through 4712.14 of the Ohio Revised Code—and that, if the organization does not abide by the terms of the bond, money is available to compensate any harmed parties for damages.
Should any person suffer harm—financial or otherwise—resulting from a credit service organization’s failure to abide by the statutes of the revised code, they may choose to claim against the organization’s bond. If the claim is valid, the surety company will pay up to the full $50,000 bond amount in order to reach a settlement. Once the claim has been settled, the surety will then look to the principal (CSO) to fully reimburse them for all money paid out.
How this bond
Ohio credit service organization bonds are written annually and must be renewed each year for as long as the CSO wishes to maintain a license. Once the organization’s license is no longer effective, a bond must remain in effect for at least 2 years to cover the cost of any claims that arise as a result of the CSO’s actions prior to the termination of their license.
Become a credit service organization
To become licensed in Ohio, credit service organizations must submit an application to the Department of Commerce. Information that must be submitted to the department includes, but is not limited to:
- Name of Applicant
- Federal Tax Identification Number
- DBA, if available
- Business Address
- Mailing Address
- Type of Legal Entity
The state also mandates that credit service organizations submit to a background/fingerprint check in every state in which they resided or worked over the course of the previous 5 years.Take the first step toward becoming licensed in Ohio by purchasing your credit service organization surety bond quickly and easily!
Apply for your surety bond
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