What is a Virginia Credit Service Organization Surety Bond?
Anyone who operates a credit services business (CSB) in the Commonwealth of Virginia is required to register with the Virginia Department of Agriculture and Consumer Services Office of Charitable and Regulatory Programs. Per the Virginia Credit Services Business Act, a credit services business sells, provides or performs any of the following services in exchange for payment:
- Improving buyers credit record, history or rating
- Obtain an extension of credit for a consumer
- Provide advice or assistance in regards to either of the above items
Security in the form of a surety bond is a requirement of registration. The bond amount is equal to 100 times the standard fee charged by the credit services business, but in no event shall the bond be less than $5,000 or greater than $50,000.
How does a Virginia Credit Service Organization Surety Bond work?
Virginia Credit Service Organization Surety Bonds guarantee that the CSB complies with the Virginia Credit Services Businesses Act and protects any person who is damaged by the unlawful actions of the CSB. If the CSB does not comply with the terms of the bond, 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 CSB 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?
Virginia Credit Service Organization Surety Bonds are filed with the Virginia Department of Agriculture and Consumer Services (DACS) and renews on an annual basis. The bond is continuous and remains in full force and effect until canceled. It must be maintained by the CSB until 2 years after the date on which the CSB ceases operation. The surety at can cancel the bond anytime by giving 60-days written notice, via registered mail, to the DACS prior to 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 a Virginia 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 Virginia Credit Service Organization Surety Bond cost?
Virginia 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% 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.
ADDITIONAL RESOURCES
- Virginia Department of Agriculture and Consumer Services – Credit Services Businesses Page
- Virginia Credit Services Businesses Act
- Virginia Credit Services Business Registration Application
- Virginia Credit Services Business Surety Bond Form
- Virginia Credit Services Businesses – Frequently Asked Questions