What is an Ohio Credit Service Organization Surety Bond?
The State of Ohio defines a credit services organization (CSO) as anyone who sells, provides or performs any of the following services in exchange for payment:
- Improving a buyer’s credit record, history or rating
- Obtaining an extension of credit for a buyer
- Providing advice or assistance to a buyer in regards to any of the above items
- Removing adverse credit information that is accurate and not obsolete from the buyer’s credit record, history or rating
- Altering the buyer’s identification to prevent the display of the buyer’s credit record, history or rating
Before conducting business in the state, credit service organizations must register with the Ohio Department of Commerce Division of Financial Institutions. A surety bond in the amount of $50,000 is a required condition of that registration.
How does an Ohio Credit Service Organization Surety Bond work?
Ohio Credit Service Organization Surety Bonds guarantee that the CSO complies with all regulations in the Ohio Credit Services Organization Act 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 for relief. 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?
Ohio Credit Service Organization Surety Bonds are filed with the Division of Financial Institutions and are renewed each year for as long as the CSO wishes to maintain a license. The bond must be maintained and in effect for at least two years after the date on which the CSO ceases to conduct business in the state. The surety can cancel the bond at anytime by providing a written notice 30-days in advance of the effective cancelation date, via certified mail, to the obligee. The aggregate liability of the surety will not exceed the face amount of the bond irrespective of the number of years the bond is in force, the number of claims filed or the aggregate amount claimed.
How do I get an Ohio Credit Service Organization 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 Ohio Credit Service Organization Surety Bond cost?
Ohio 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 $500 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.