Nevada Credit Service Organization Bond |
Nevada Credit Repair Bond |
AmeriPro Surety Bonds | 844-589-9732
Nevada Credit Service Organizations
Nevada-based credit services organizations are more commonly known as “credit repair” companies.
Such companies exist to provide credit services to consumers with the goal of:
- Improving a customer’s credit report (as found on Equifax, TransUnion, or Experian and other credit bureaus);
- Providing more favorable repayment terms, including the reduction of terms or interest rates, or the complete elimination of debt entirely;
- Providing new extensions of credit.
Nevada Credit Service Companies: Licensing
Though Nevada credit repair companies are required to register with the state, there is no formal licensing as such.
All Nevada credit repair companies are prohibited, however, from operating at all without first registering with the state and providing the required $100,000 surety bond.
Nevada Credit Services Organizations: Prohibited Activities
Nevada credit repair companies are prohibited from doing all of the following:
- Advising any clients to make any statements which are untrue or misleading, especially when the untrue statement is known, or could easily be known;
- Receiving payment, in the form of money, or the equivalent, before services have been completed by the credit repair organization (to comply, some credit repair companies now only charge for items which have been “deleted” from a customer’s credit report. This is known as “Pay for Delete”);
- Charging a client to obtain new credit, when, had the client obtained the credit on their own initiative, they would have received the same terms (i.e. interest rate, payment amounts, credit limits, etc.)
- Advising clients to create a “new” social security number, or other activities, the goal of which is to create a new credit file distinct from the client’s own;
- Attempt to remove, or have the client assist in removing, information from the credit report which is not “obsolete”
Nevada Credit Service Organization: $100,000 Surety Bond required
Before a credit repair organization may legally operate in Nevada, they are required to post a $100,000 surety bond.
The surety bond is issued for benefit of the consumers of the credit repair organization, not the Nevada credit repair company.
The bond protects the consumers from criminally wrongful acts committed by a credit services organization (CSO).
Cost of the Nevada Credit Service Organization Bond
Although this credit repair is $100,000, sharing this high dollar requirement with California, applicants for a Nevada credit services organization bond will only pay a small percentage of that amount.
With good credit, applicants may pay only 1% this bond.
Persons with challenged credit will pay more; however, please read below.
Payment Plans Accepted
Because of the high dollar value of this bond, AmeriPro Surety Bonds allows, in certain instances, a payment plan for the surety bond. Typically, the down payment is between 30-40% of the bond’s premium, with the balance paid within 4 to 5 months. Not all persons will qualify, and a threshold of $1500 typically must first be met to qualify.
After the Nevada Credit Service Organization bond has been issued
Credit service organization in Nevada come under the authority of the Division of Mortgage Lending, Department of Business and Industry, State of Nevada.
You will want to have the bond immediately filed with this government entity to demonstrate compliance.
About AmeriPro Surety Bonds
Our agency also provides surety bonds in all 50 states.