What is a Massachusetts Credit Service Organization Surety Bond?
The state of Massachusetts defines a credit services organization as anyone who sells, provides, performs, or represents to sell, provide or perform the following services in return for payment or other valuable considerations:
- Improving a buyer’s credit record, history or rating
- Obtaining an extension of credit for a buyer
- Provide advice or assistance to a buyer in regards to either of the above items
Per the Massachusetts General Laws, a credit services organization that wishes to receive payment before fully completing the services must obtain a surety bond in the amount of $10,000. The credit service organization also must establish a trust account at a federally insured bank or savings and loan association located in the state.
How does a Massachusetts Credit Service Organization Surety Bond work?
Massachusetts Credit Service Organization Surety Bonds guarantee that the CSO complies with Part I, Title XV, Chapter 93: Section 68B of the Massachusetts General Laws and protects consumers who are 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.
How do I get a Massachusetts 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 a Massachusetts Credit Service Organization Surety Bond cost?
Massachusetts 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.