Credit services organization bond cost
The California Secretary of State requires credit services organizations to post $100,000 surety bonds prior to conducting business. The best way to find out exactly how much you’ll pay for your California surety bond is to request your free surety bond quote now! Having current business financials and a personal financial statement handy when you contact Surety Bonds will expedite the bonding process and ensure you pay the lowest premium rate possible.
Why this bond
By posting a California credit services organization bond, principals (credit services organizations) pledge to conduct business in compliance with the provisions of Title 1.6E, Part 4 of Division 3 of the Civil Code of California. Violations of this code include:
- Receiving money prior to fulfilling credit services for a buyer
- Failing to perform the services within 6 months following the date the buyer signed the contract
- Removing accurate information from the buyer’s credit record
- Creating a new credit record for a buyer using a different name or social security number
- Advertising without being registered with the Department of Justice
- Failing to maintain an agent for processing
- Referring a buyer to a credit granter that is related to the credit services organization through ownership
- And more
If the principal violates the code and the terms of the surety bond contract and a valid claim is made against the bond, the surety protects any individual or group of individuals harmed as a result of the principal’s actions up to the full bond amount. The principal must cover all damages paid by the surety.
Credit services organization bond details
Credit services organization surety bonds in California remain in full force and effect until violated or canceled. The bond term is 2 years from the issuance date.The surety can cancel the bond in accordance with the provisions of Sections 996.310 of the Code of Civil Procedure.
Become a credit service organization
Credit service organizations in California must obtain a certificate of registration from the Department of Justice prior to conducting business. The application form can be accessed from the Important Links section of this page. Required application information includes:
- Name and address of business operations
- Names, addresses and driver’s license numbers of every person who owns at least 10% of stock shares in the organization
- $100,000 surety bond
- Transcripts and copies of all advertisements
- $100 registration fee
The certificate expires on December 31 of each year, but can be renewed by sending a renewal application to the Department of Justice.To receive your certificate of registration, you must first obtain a surety bond. Request your free bond quote now!
Apply for your surety bond
Get a FREE Credit Services Organization Bond Quote Today! Click here to begin