What is an Oklahoma Credit Service Organization Surety Bond?
In Oklahoma, credit services organization (CSOs) are defined 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
Before conducting business in the state, credit service organizations must be licensed with the Oklahoma Department of Consumer Credit. A surety bond in the amount of $10,000 is a required condition of the license.
How does an Oklahoma Credit Service Organization Surety Bond work?
Oklahoma Credit Service Organization Surety Bonds guarantee that the CSO complies with all regulations in the Oklahoma Credit Services Organization Act and Title 160, Chapters 1, 3, 5 and 60 of the Oklahoma Administrative Code. It also 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.
What are the terms of the bond?
Oklahoma Credit Service Organization Surety Bonds are filed with the Department of Consumer Credit and are renewed each year for as long as the CSO wishes to maintain a license. The surety can cancel the bond at anytime by providing a written notice 30-days in advance of the effective cancelation date. 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 Oklahoma 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 Oklahoma Credit Service Organization Surety Bond cost?
Oklahoma 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.