What is a California Credit Service Organization Surety Bond?
Anyone who wishes to conduct business as a Credit Service Organization (CSO) in the state of California must obtain a certificate of registration from the Department of Justice. Per the Credit Services Act, in order to obtain this certificate, the credit service organization must file a surety bond in the amount of $100,000.
How does a California Credit Service Organization Surety Bond work?
California Credit Service Organization Surety Bonds guarantee that the CSO follows all state regulations and laws governing the operation of a credit service organization. It also protects any person who is damaged by the unlawful actions of the CSO. If the CSO does not comply with these terms, a claim can be filed with the surety company. If the claim is valid, the surety will pay up to the penal sum of the bond to resolve the claim. The CSI is then required to reimburse the surety for all monies paid out, including any attorney fees incurred by the surety in the defense of the requester.
What are the terms of the bond?
California Credit Service Organization Surety Bonds are filed with the California Secretary of State and have a mandatory term of 2 years. Pursuant to the civil code, the bond shall be maintained for two years following the date on which the CSO ceases to conduct business in the state. The aggregate liability of the surety will not exceed the penal sum of the bond.
How do I get a California Credit Service Organization Surety Bond?
The first step is to complete our quick online application for your free bond quote. It only takes about five minutes to complete, and one of our underwriters will be in contact with you within a couple of hours with your pricing.
After you receive approval, you will sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day as we receive your signed documents and payment.
How much does a California Credit Service Organization Surety Bond cost?
California Credit Service Organization Surety Bonds are subject to underwriting and the price you will pay depends on a review of your personal credit report. Pacific Surety is proud to offer a variety of approvals, regardless of credit, with rates starting at $1,000 annually for well qualified applicants. It typically takes just a few hours from quote to issuance of the bond, and we have the ability to beat any competitors pricing. If you have any specific questions, feel free to contact our knowledgeable underwriting staff.