According to California Civil Code Section 1789.25, a credit service organization is any business entity that performs one or more of the following services: improves a credit record, history, or rating. These organizations can help delay the foreclosure of a mortgage or other security agreement, but they also have requirements for licensure and often require a surety bond, ensuring the organizations conduct business ethically and lawfully. A credit service organization bond is used to protect consumers' financial interests if the credit service organization does not comply with the services agreed upon. Valid third parties may make a claim against the bond for reasons such as failure to perform contractual services, misrepresentation, fraudulent credit record actions, improperly receiving money for services, and more.
If you'd like information, forms, or applications for a California Credit Services Organization Bond, please contact one of our surety specialists or fill out our bond request form online. Contact us today! One of our experienced surety agents will happily walk you through each step of our simple and easy bonding process.
Each state has different bond requirements and a different bond form. In California, the bond amount required is $100,000. The premium to be paid will be a small percentage of the bond amount, but for two years, the amount is $1,850. In California, it is required to have a two-year surety bond in place that will renew every two years.
The California Secretary of State requires a Credit Services Organization bond to register any credit repair service business. The California legislature put the bond in place to ensure that credit service organizations engage in ethical business practices.
A California Credit Services Organization bond is active for two years. Every two years, the bond will renew until the organization no longer needs the bond. Pursuant to section 1789.18 (c) of the Civil Code, “the bond shall be maintained for two years following the date on which the credit services organization ceases to conduct business in this state.” The bond will remain continuous and remain in full force and effect for the term of the initial bond until the cancellation or withdrawal of the surety from the bond.
This type of bond is used to protect the financial interests of consumers while ensuring the credit service organization is conducting business in an ethical and lawful manner. If a claim is made against the bond, the surety will determine whether the claim is valid and pay the claim accordingly.
Whether you are looking for a California credit services organization bond or any other type of surety bond in California, The ProSure Group helps you find the right surety bond quicker & easier. Our goal is to provide you with simple and efficient service so you can focus on your business while we make sure your suppliers are dependable. Contact The ProSure Group today to request a free bond quote!
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|License||California Credit Services Organization Bond||California Secretary of State
||$100,000||Click Here To Get Bonded|