What is an Ohio Credit Services Organization Bond?
Starting a Credit Services Organization in Ohio? You need this bond!
All Credit Services Organizations will not be allowed to perform its duties in Ohio unless they submit a bond to the Division of Financial Institutions of the State of Ohio.
The requirement is stated in Chapter 4712.06 of the Ohio Revised Code or The Ohio Credit Services Organization Act.
A Credit Services Organization’s duties are as follows:
- Improves a buyer’s credit history or rating
- Obtains an extension of credit for a buyer
- Provides advice to a buyer in regard to improving the buyer’s credit rating or obtaining an extension of credit
- Removes unfavorable credit information from the buyer’s record that is accurate
- Prevents the display of the buyer’s original credit record by altering the buyer’s identification
What is the bond amount?
The bond amount is $50,000.
Those who have excellent credit scores may be eligible for a very low bond premium or just 1% of the bond amount!
Find out what you need to pay by getting your FREE quote here today!
What are the bond conditions?
- The bond will be a legally binding agreement between these three key parties:
Principal – The Credit Services Organization
Obligee – The State of Ohio
Surety – the surety bond company who will issue the bond
- The bond should be issued by a surety bond company who is licensed to conduct business in the State of Ohio such as Surety Bond Authority
- The Credit Services Organization should abide by all the provisions of Chapter 4712 of the Ohio Revised Code or The Ohio Credit Services Organization Act and all the other rules and regulations that govern Credit Service Organizations in Ohio
- If the Credit Services Organization commits a valid violation, the aggrieved party will be eligible to file a claim on the bond
- A copy of the bond should be submitted to the Division of Financial Institutions for filing
- The bond should remain valid for two years after the Credit Services Organization has ceased to conduct business in the State of Ohio
How can I obtain this type of bond?
Seek the assistance of a dependable surety bond company that is authorized to do business in Ohio such as Surety Bond Authority.
We will first ask you to submit an application for a Credit Services Organization Bond.
Once you have applied for the said bonds, you will be asked by one of our expert surety bond agents to gather the necessary information needed such as, but not limited to, your job performance history, financial strength, and credit score. An underwriter will evaluate all those information.
Once done, we will then execute your bond and send it to you!
Are you ready to get started on this bond? Call here today!