WHAT IS A WISCONSIN CREDIT SERVICE ORGANIZATION SURETY BOND?
Credit Service Organizations (CSO) who wish to conduct business in the state of Wisconsin are required to register with the Department of Financial Institutions. A surety bond in the amount of $25,000 must be obtained and filed as a requirement of the registration.
Per Section 422.501(2)(a) of the Wisconsin Statutes, a credit services organization is anyone who sells, provides or performs, or represents that the person will sell, provide or perform, any of the following services in return for the payment of money or for other valuable consideration:
- Improving a buyer’s credit record, credit history or credit rating
- Arranging for or obtaining an extension for credit for a buyer
- Providing advice or assistance to a buyer with regard to the above
HOW DOES A WISCONSIN CREDIT SERVICE ORGANIZATION SURETY BOND WORK?
Wisconsin Credit Service Organization Surety Bonds guarantee that the CSO complies with Sections
422.501 – 422.506 of the Wisconsin Statutes and protects any person who is damaged by unlawful actions of the CS0. If the CSO 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 CSO is then required to reimburse the surety for all monies paid out, including any attorney fees incurred by the surety in the defense of the claim.
WHAT ARE THE TERMS OF THE BOND?
Wisconsin Credit Service Organization Surety Bonds are filed with the Commissioner of Banking of Wisconsin and renew on December 31st of every even numbered year after issuance. The surety can cancel the bond at any time by giving 30-days written notice to the Office of Commissioner of Banking 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 WISCONSIN 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.
CAN I GET A WISCONSIN CREDIT SERVICE ORGANIZATION SURETY BOND WITH BAD CREDIT?
Pacific Surety offers a wide-range of approvals, regardless of credit, for Wisconsin Credit Service Organization Surety Bonds. Our strong surety relationships help get your price down as low as possible each year. There is no need to shop your rate – we do that for you! If you have any specific questions, feel free to contact our knowledgeable underwriting staff.
HOW MUCH DOES A WISCONSIN CREDIT SERVICE ORGANIZATION SURETY BOND COST?
Wisconsin 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 rates starting at $250 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.
- State of Wisconsin Department of Financial Institutions
- Sections 422.501 thru 422.506 of the Wisconsin Statutes
- Wisconsin Credit Services Organization Registration Application
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Credit Service Organization Surety Bonds – Wisconsin
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