What Is a Florida Credit Services Organization Surety Bond?
Credit services organizations in Florida have to get licensed with the state Department of Banking and Finance. You need to post a credit services organization bond as one of the legal requirements to start your business.
The purpose of your surety bond is to guarantee your legal compliance. It can provide a financial compensation for parties that suffer damages as a result of potential illegal actions on your side. In this sense, the bond protects the state and the general public.
Your credit services organization bond functions like a contractual agreement between three entities. Your business is the principal. The Florida Department of Banking and Finance is the obligee that requires the bond. Finally, the surety provides the bonding.
Frequently Asked Questions
Who needs to post this surety bond?
Any entity that wants to operate as a credit services organization in Florida has to obtain a surety bond in the amount of $10,000. You need to use the official bond form provided by the Department of Banking and Finance, which is the licensing authority.
The bond ensures you will not commit the prohibited acts set in Title XLVI, Chapter 817 of the 2017 Florida Statutes.
What is the cost of a Florida credit services organization surety bond?
The bond amount that you have to provide as a Florida credit services organization is $10,000. The actual bond price that you have to pay is called a bond premium. It is only a small percentage of the required amount. If your overall application is solid, the usual rates are between 1% and 5%.
|Surety bond name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Florida credit services organization surety bond||$10,000||$100-$150||$100-$250||$250-$500||$500-$1,000|
Your surety bond cost is formulated on the basis of a number of financial and business factors. These include your personal credit score and business finances, as well as any assets and liquidity that you showcase. By examining these factors, your surety assesses the level of bonding risk. The lower it is, the smaller your bond price will be.
What if my credit is bad?
You can still get bonded with us, even if you struggle with a low credit score, bankruptcies, tax liens, or civil judgements. Lance Surety Bonds operates its Bad Credit Surety Bonds program to allow bonding options for applicants with problematic finances.
The rates for bad credit bonding are usually between 5% and 10%. They compensate for the increased bonding risk. Still, you are guaranteed a great bond price with us. We work with numerous A-rated, T-listed surety companies, which allows us to choose the most suitable bond option for your case.
How can I obtain the bonding?
Do you want to learn more details on how getting bonded works? You can get all the important basics in our How to Get Bonded page.
You can always call us at (877) 514-5146. Our bonding specialists will be happy to assist you with further questions, or if you need help with your bond application.
How are bond claims handled for credit services organizations?
Your Florida credit services organization surety bond is an extra layer of security for your customers. It ensures you will act faithfully, honestly, and in accordance with the state law. In case you transgress from your legal obligations, you can get a bond claim from a harmed party.
The claimant can seek a financial reimbursement up to the penal sum of your bond, which is $10,000 in this case. Your surety may cover the amount at first, so that it provides a quick compensation to the affected party. However, you are fully liable to repay it afterwards. This makes bond claims a serious financial threat that is best to be avoided. It can also damage your ability to get bonded and conduct your business in the future.