What is a Utah Credit Service Organization Surety Bond?
In the State of Utah, anyone doing business as a credit service organization must register with the Utah Department of Commerce Division of Consumer Protection. A surety bond in the amount of $100,000 must be posted as a condition of that registration.
A credit service organization (CSO) is defined as anyone who sells, provides or performs any of the following services in exchange for payment:
- Improving buyers credit record, history or rating
- Providing advice, assistance, instructions or instructional materials to a buyer with regard to the above
- Debt reduction or debt management plans
How does a Utah Credit Service Organization Surety Bond work?
Utah Credit Service Organization Surety Bonds guarantee that the CSO complies with the Utah Credit Services Organizations Act and protects any person who is damaged by the unlawful actions of the CSO. If the CSO does not comply with the terms of the bond, 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 by the surety.
What are the terms of the bond?
Utah Credit Service Organization Surety Bonds renew on an annual basis with a continuation certificate and are filed with the Utah Division of Consumer Protection. The surety can cancel the bond at any time by giving 90-days written notice, prior to the effective cancelation date, to the obligee. The aggregate liability of the surety will not exceed the penal sum of the bond in any event.
How do I get a Utah 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 Utah Credit Service Organization Surety Bond cost?
Utah 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 $1,000 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.
- Utah Department of Commerce – Division of Consumer Protection
- Utah Credit Services Organizations Act
- Utah Credit Services Organization Registration Application Form
- Utah Credit Services Organizations Surety Bond Form
Surety Bond Name
Credit Service Organization Surety Bonds – Utah
$100,000Request a Free Quote