What is an Iowa Credit Service Organization Surety Bond?
Credit service organizations (CSOs) refers to anyone who sells, provides or performs either of the following services in exchange for payment:
- Improving a buyer’s credit record, history or rating
- Providing advice or assistance to improve a buyer’s credit record, history or rating
Before conducting business in the State of Iowa, credit service organizations must register with the Secretary of State. A surety bond in the amount of $10,000 is a required condition of that registration.
How does an Iowa Credit Service Organization Surety Bond work?
Iowa Credit Service Organization Surety Bonds guarantee that the CSO follows all state regulations and laws governing the operation of a credit service organization. This 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 CSO is then required to reimburse the surety for all monies paid out, including any attorney fees incurred.
What are the terms of the bond?
Iowa Credit Service Organization Surety Bonds are filed with the Iowa Secretary of State 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.
How do I get an Iowa Credit Service Organization Surety 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.
How much does an Iowa Credit Service Organization Surety Bond cost?
Iowa 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 $100 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.