CA Credit Services Organization Bond

Any person or entity engaging in credit services providing has to get a Certificate of Registration in order to operate legally in California. Together with a completed application form, credit services organizations need to provide to the Department of Justice a bond in the amount of $100,000. You have to use the official bond form.

The bond guarantees your compliance with the California Credit Services Act of 1984, as well as the state Civil Code.

The bond requirement for California credit services organizations is $100,000. In order to obtain a bond, you have to cover only a percentage of this bond amount. It is referred to as the bond premium and is typically between 0.75% to 2.5% for applicants with solid finances.

There are a number of factors that are considered in the formulation of your surety bond cost. The surety you apply with has to examine your personal credit score, business finances, any assets and liquidity you may have, and your professional experience. On this basis, it can judge the level of risk associated in the bonding.

Lance Surety Bonds has a special Bad Credit Surety Bonds program for applicants struggling with low credit scores, tax liens, bankruptcies, or civil judgements. You can still get the bond you need, even with problematic finances.

The bond rates you can expect are in the range of 5% to 10%. They compensate for the increased risk of getting you bonded. Our partnerships with numerous A-rated, T-listed surety companies, however, guarantee that we can still offer you a top bond price.

For further information on how bonding works, our How to Get Bonded page offers a thorough overview. If you have more questions, just call us at (877) 514-5146. Lance Surety Bonds’ specialists are here to assist you.

Credit services organization bonds protect your customers and the state rather than your business. If you fail to follow the law, you may get a bond claim from a harmed party. They can seek a reimbursement up to the bond amount, which is $100,000 in this case.

Some situations that can lead to a claim include failing to provide services within a six-month period from contract signing, mishandling of consumer information, changing buyers’ information for fraudulent purposes, and the like. If the claim is proven, you will have to compensate the claimant. At first, it may be your surety that takes over the cost, but you have to repay them fully. That’s why bond claims are to be avoided as much as possible.