Credit Services Bond - California

* For qualified applicant based on underwriting and personal credit score.

Who is Required to Secure this California Credit Services Bond

A “Credit Services Organization” by definition is a person who, with respect to the extension of credit by others, sells, provides, or performs, or represents that he or she can or will sell, provide or perform, any of the following services in return for the payment of money or other valuable consideration: 1. Improving a buyer’s credit record, history or rating. 2. Obtaining a loan or other extension of credit for a buyer. 3. Providing advice or assistance to a buyer with regard to credit. Under California Civil Code 1789.18, “No credit services organization shall conduct business in the State of California unless the credit services organization has first obtained a surety bond in the amount of $100,000. The bond shall remain on file with the State for a period of two years following the date on which the credit services organization ceases to conduct business in the State of California.

California Credit Services Bond Requirement Specifics

As set forth under California Civil Code 1789.18, every credit services organization must maintain a $100,000 surety bond with the Secretary of State in order to operate a credit services business in California.

Who is protected Under this California Credit Services Bond

The Credit Services Bond is made payable to the State and the people of the State and is for the benefit of any person who is damaged by any violation of the credit services organization resulting in actual damages as set forth by an action of the law

What you Need to do Once you have your California Credit Services Bond

As the original Credit Services bond must be filed with the State of California, Secretary of State the original bond will be mailed to the Credit Services organization within 24 hours of submitting their application online so long as the bond is approved and the first year term premium is paid. The applicant will need to forward the original bond to the State of California, Secretary of State for filing. The bond will be placed in regular mail unless the applicant opts to pay the fee associated with overnight delivery during the application process.

* Please be advised that the quote you obtain for this bond may include a fee charged and retained by The Bond Exchange.