What is an Arizona Credit Service Organization Surety Bond?
In the state of Arizona, a credit service organization (CSO) is anyone who sells, provides or performs any of the following services in exchange for payment:
- Improving buyers credit record, history or rating
- Obtain an extension of credit for a buyer
- Provide advice or assistance in regards to either of the above items
Per the Arizona statutes, a surety bond must be filed by any credit service organization that wishes to receive payment for their services before said services are complete. The bond amount requirement is equal to 5% of the total amount of fees charged to buyers by the CSO during the previous 12 months, and shall not be less than $5,000 or more than $25,000.
How does an Arizona Credit Service Organization Surety Bond work?
Arizona 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 requester 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 CSO.
What are the terms of the bond?
Arizona Credit Service Organization Surety Bonds are filed with the Arizona Corporation Commission – Corporation Division and renew on an annual basis. The bond term is continuous and will remain in force and effect until cancelled by the surety or principal. The aggregate liability of the surety will not exceed the penal sum of the bond.
How do I get an Arizona 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 an Arizona Credit Service Organization Surety Bond cost?
Arizona 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% 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.