What is a Louisiana Credit Repair Service Surety Bond?
Credit Repair Service (CRS) Organizations who wish to conduct business in the state of Louisiana are required to register with the Louisiana Department of Justice. A surety bond in the amount of $100,000 is required.
Per the Credit Repair Services Organization Act, a CRS organization is anyone who sells, provides or performs, or represents that a person will sell, provide or perform, any of the following services in return for the payment of money or other valuable consideration:
- Improving a buyer’s credit record, credit history or credit rating
- Giving advice or assistance to a buyer with regard to improving a buyer’s credit record, credit history, or credit rating, including the sale of self-help instructional guide
How does a Louisiana Credit Repair Service Bond work?
Louisiana Credit Repair Service Surety Bonds guarantee that the CRS complies with the Credit Repair Service Organization Act and protects against unlawful actions of the CRS. If the CRS does not comply with the terms of the bond, 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 CRS is then required to reimburse the surety for all monies paid out, including any attorney fees incurred.
What are the terms of the bond?
Louisiana Credit Repair Service Surety Bonds are filed with the Louisiana Department of Justice and renew on an annual basis. The bond has a continuous term and remains in full effect until canceled. The surety can cancel the bond at any time by giving 60-days written notice prior to the effective cancelation date. The aggregate liability of the surety will not exceed the penal sum of the bond in any event, and all claims must be filed within 4-years from the date the cause of action accrues against the principal.
Can I get a Louisiana Credit Repair Service Surety Bond with bad credit?
Pacific Surety offers a wide range of approvals, regardless of credit, for Louisiana Credit Repair Service Surety Bonds. Our strong surety relationships help get your price down as low as possible each year. There is no need to shop your rate – we do that for you! If you have any specific questions, feel free to contact our knowledgeable underwriting staff.
How much does a Credit Repair Services Bond cost in the state of Louisiana?
Louisiana Credit Repair Service Surety Bonds are subject to underwriting and the price you will pay depends on a review of your personal credit report. Due to the high amount and 4-year tail language of this bond, underwriters will often want to see financials before approving the bond. Pacific Surety is proud to offer 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.
How do I get a Louisiana Credit Repair Services Bond?
The first step is to complete our quick online application for your free bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing.
After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.