California Credit Service Organization Bond (Credit Repair Bond)
AmeriPro Surety Bonds | 844-589-9732
Questions regarding whether or not you require a surety bond, what it requires to form a credit repair business (etc.), must be directed to the California Secretary of State, at their Contact Us page, not our agency.
There’s a lot of information on this page; however, to sum up matters: Good and satisfactory credit are required for approval through our agency. And an applicant for the California credit services organization bond will either be approved or declined based on good credit; the premium will be $1500 for the 2 year term, if you are approved. Otherwise, unfortunately, your application will be declined.
$100,000 Credit Repair Bond for California Credit Repair Companies: It’s the Law…
The state of California, Department of Justice, requires that all those who operate a credit services organization (that is, a “credit repair” company based in or operating in California) obtain a surety bond in the amount of $100,000, and then have that bond filed with the California Secretary of State office.
Comparatively very few active, California-based credit repair companies comply with this all-important provision. The majority do not comply with this rule.
If you are a California-based credit repair company, or you are looking to venture in the world of credit repair (which offers many opportunities), having this bond not only keeps you in compliance with California state law, it can also be an additional way to substantiate your credibility as a compliant credit services organization with the public.
In short, having a credit repair bond can give you “bragging rights” in your marketing efforts.
The California Credit Services Organization bond is issued for a period of two (2) years, and, furthermore, must be held as active 2 years from the date a credit repair organization ceases operations either entirely or within the state of California.
How Much Will a California Credit Service Organization Bond Cost Me?
As you can probably guess, the premium for this bond will be based upon your credit report and score. AmeriPro Surety Bonds will work with you to get the best pricing for your surety bond.
We also work with those who have challenged credit scores.
We understand that many who pursue a career in the credit repair field once personally suffered from “bad credit” themselves and are therefore personally motivated in helping others who are in similar positions. However, to qualify for this bond you will need “good credit”.
For those with optimal credit scores, the bond premium can be as low as 1%, and, possibly lower. Bear in mind, however, that California credit repair bonds are issued for a period of 2 years, only; this bond is not annually issued. A well-qualified applicant with excellent credit may pay as little as $1500 for the two year term.
The California credit services organization surety bond, by mandate of the state of California, is issued for a period of 2 years. The premium reflects this bond’s duration.
How to Qualify for This Surety Bond Without a Credit Check
In order to qualify for this bond for streamlined process and without a credit check, you must certify that the following are true:
- You have no felony convictions;
- You have never owned a company which has become bankrupt or insolvent;
- You have never had a surety bond declined, terminated, or one in which a claim has been made;
- You have no unsatisfied judgments, lawsuits, or liens against yourself or any company owned by you;
- You have been in the same location and same name for at least 3 years.
If you meet the above qualifications, the bond’s price is $1800 for the two year term of the bond. We are confident that if you qualify, you will not find a lower price.
Our agency does not confirm your answer. We use the honor system; we take you at your word.
However, if you do not qualify and must undergo standard underwriting, be assured that our agency will still look to find you the best surety bond pricing.
While our agency will always do its best for clients, we want to be honest and upfront.
Applicants with bad credit should consider the following:
- This is a high dollar bond: $100,000.
- The premium you pay is based on the bond amount and your credit score.
Applicants may theoretically pay up to $10,000 for this bond if their credit is substandard. Premium financing is available; however there is interest involved, and the amount down is still thousands of dollars.
Additionally, monthly payments are high and completed within only a few months.
Having poor credit makes getting this bond financed either not doable, or only doable at a very high premium…
What Does a California Credit Service Organization Policy Do? Is it an Insurance Policy?
The California credit services organization bond protects the public from potential acts of dishonesty, willful misrepresentation, and other acts of malfeasance on the part of a credit repair company.
As such, the bond is NOT an insurance policy for the credit repair company. Rather, it is a requirement (law) by the California Secretary of State who is the bond’s obligee.
Clients of credit repair companies who allege wrongful acts have the ability to make a complaint on a bond which has been filed and to potentially be compensated by the surety bond company. Any payments made by a surety bond company on a credit repair bond claim must be reimbursed by the credit repair company. This includes all legal fees which may be involved.
How Soon Can I get my California Credit Service Organization Bond?
AmeriPro Surety bonds will work with you to provide you your California credit services organization bond as quickly as possible. We will have it issued for you upon receipt of your payment for you to file with the California Secretary of State.
Depending upon you and the time we receive your application, your credit repair bond can be issued in as little as a few hours!
AmeriPro Surety Bonds also provides credit services surety bonds for all states who have mandated this as a requirement for credit repair organizations.