California Credit Services Organization Bond
Provide credit services with confidence through this surety bond!
What is a California Credit Service Organization Bond?
It’s a registration requirement that every credit services organization must submit to the Attorney General’s Office, California Department of Justice before the following services can be performed:
- Improve a buyer’s credit record, history, or rating.
- Obtain a loan or other extension of credit for a buyer.
- Provide advice or assistance to a buyer with regard to improving a buyer’s credit record, history, and rating, or obtaining a loan or other extension of credit for a buyer.
The credit services organization named in the bond must comply with the provisions of the Credit Services Act of 1984 as well as the conditions of the registration.
This bond will ensure that if the credit services organization commits any violation, the person who will be harmed will be compensated. Some of the violations are as follows:
- Charge or receive any money before the services are provided to or on behalf of the buyer.
- Fail to perform the agreed services within six months after the contract has been signed.
- Advise a buyer to make a statement that is untrue or misleading.
This registration requirement is in pursuance of Section 1789.18 of the California Civil Code.
How does a California Credit Services Organization Bond work?
As long as the Principal (credit services organization) fulfills the obligations of the bond, no claim will be made against it by an Obligee (People of the State of California). The Surety (surety bond provider) will serve as a guarantor of the Principal. The Surety will assure the Attorney General’s Office, California Department of Justice that the Principal will fulfill the obligations.
Both the Surety and the Principal will be indebted to the Obligee if a violation is made by the Principal. The Surety will pay the claim after checking its validity. Once the Obligee is paid, the Principal must reimburse the Surety.
How much does a California Credit Services Organization Bond cost?
The bond cost will range from 1% to 10% of the bond amount – depending on the credit services organization’s credit score. The bond amount is $100,000.
Check out what you need to pay by getting your FREE SURETY BOND QUOTE HERE!
How can I get a California Credit Services Organization Bond?
Here’s how to do get bonded:
- APPLY FOR THIS BOND HERE!
- Once we’ve received your application, we will ask you to submit the necessary information needed for the underwriting process. These are the following:
- Your financial capability
- Your business or job performance history
- Your credit score
An expert underwriter will carefully evaluate all three in order to attain the best credit decision possible. To avoid any delay, the information that you should submit should be organized and concise.
- Your surety bond will be issued and sent to you after the indemnity agreement is signed.
Ready to apply for this surety bond? START HERE!