What is a Virginia Credit Repair Service Surety Bond?
Virginia Credit Repair Service Surety Bonds are required by the Virginia State Corporation Commission – Bureau of Financial Institutions for anyone who engages in the business of providing, or offering to provide, a debt management plan to consumers. A debt management plan is defined as a program in which the consumer gives control of his funds to an agency for distribution to the consumer’s creditors.
This bond has an amount of no less than $25,000 and no more than $350,000. The bond amount for a new licensee is based upon the applicant’s financial condition, capitalization, projected Virginia monthly volume of funds received, experience and other factors deemed pertinent by the commission.
Please contact the Bureau of Financial Institutions for your specific bond amount.
How does a Virginia Credit Repair Service Surety Bond work?
Virginia Credit Repair Service Surety Bonds guarantee that the principal (credit repair service) shall perform all written agreements with consumers, correctly and accurately account for all funds received, and strictly comply with all provisions of Title 6.2, Chapter 20 of the Code of Virginia. If the principal 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 principal is then required to reimburse the surety for all monies paid out. This includes any attorney fees incurred by the surety.
What are the terms of the bond?
Virginia Credit Repair Service Surety Bonds are filed with the Virginia Bureau of Financial Institutions and renew on an annual basis. The bond term is continuous and remains in full force and effect until canceled.
The surety at can cancel the bond anytime by giving 90-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.
How do I get a Virginia Credit Repair Service Surety Bond?
The first step is to complete our quick online application for your free bond quote. Submission takes only five minutes. Our underwriting staff will be in contact with you within a couple of hours with pricing.
After receiving 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.
How much does a Virginia Credit Repair Service Surety Bond cost?
Virginia Credit Repair Service Surety Bonds are subject to underwriting. 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% annually for well-qualified applicants.
It typically takes just a few hours from quote to issuance of the bond. We have the ability to beat any competitors pricing. If you have any specific questions, feel free to contact our knowledgeable underwriting staff.