What is an Indiana Credit Service Organization Surety Bond?
In the state of Indiana, 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
- Obtaining a delay or forbearance of a buyer’s obligation under a mortgage
- Obtaining a lower interest rate for a consumer loan or residential mortgage loan
- Providing debt settlement services on behalf of a buyer
- Providing advice or assistance to a buyer on any of the above items
Per the Indiana Code, anyone who wishes to do business as a credit service organization must obtain a surety bond in the amount of $25,000 for security.
How does an Indiana Credit Service Organization Surety Bond work?
Indiana Credit Service Organization Surety Bonds guarantee that the CSO follows all state regulations and laws governing the operation of a credit service organization. The bond 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?
Indiana Credit Service Organization Surety Bonds are filed with the State of Indiana Attorney General 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 surety may cancel the bond at anytime by providing a 30 day written notice prior the effective cancelation date. The aggregate liability of the surety will not exceed the penal sum of the bond in any event. You will also be required to provide the following information on the bond form:
- Does your company have any pending litigation filed by any stat or federal entity concerning Foreclosure Consultant/Credit Service Organization in any other jurisdiction?
- Does your company go by any other names than the one listed above?
How do I get an Indiana 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 Indiana Credit Service Organization Surety Bond cost?
Indiana 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 $250 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.