How to Register Your Credit Repair Services Organization in Louisiana
Credit repair services organizations in Louisiana have to undergo a registration procedure before launching operations in the state. This ensures applicants satisfy all relevant criteria for offering such professional services.
In order to obtain a registration as a Louisiana credit repair services organization, you have to meet all requirements set by state authorities. Among the most important ones is that you have to provide a state credit services organization bond that guarantees your legal compliance.
You can delve into the details of the registration in the essential guide below.
The requirements for Louisiana credit repair services organization
Credit repair services organizations in Louisiana need to register with the state Attorney General’s Office. It is the authority that oversees the activities of such professionals in the state.
The rules governing the profession are set in the Credit Repair Services Organization Act. The legislation defines a credit repair service organization as an entity that provides services for improving or advises on how to improve a buyer’s credit record, history or rating.
The first step to obtain your registration is to fill in the Credit Repair Services Organization Registration Statement. You need to provide the following information:
- Business location and name
- Business entity formation documents
- Information about your authorized agent in the state
- Full and complete disclosure of any litigation or unresolved complaint or a notarized statement that there has been no litigation or unresolved complaint against your organization
In addition, you also have to post a surety bond, which is explained in the next section.
Together with the registration requirements, the Act also sets rules for the forms and terms of the contracts and disclosures that credit repair services organizations have to provide.
How to get a Louisiana credit services organization bond
As noted, one of the essential requirements that you have to fulfill in order to register your business is to provide a Louisiana credit services organization bond in the amount of $100,000. You need to provide the bond in the official form.
The purpose of the bonding requirement is to guarantee that in your professional activities you will comply with the Louisiana Credit Repair Services Organization Act, as well as any other legal obligations. If you violate the Act or other applicable rules, you are liable to cover the costs of any parties who have suffered damages as a result of your actions. Harmed parties can file a claim against your surety bond, which can be up to the bond amount you’ve posted. This can be done within four years from the date of cause of action.
The bonding process involves that you pay a fraction of the bond amount, which is called the premium. Your personal and business finances determine it. The stronger they are, the smaller the bond price, as the bonding risk is lower. If your finances are in good shape, you can expect rates between 0.75% and 5%, or $750 to $5,000.
Do you need further details about meeting the bonding requirement for your registration as a Louisiana credit repair services organization? Call us at 877.514.5146 to speak with our bonding experts.
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