Utah Credit Services Organization Bond |
AmeriPro Surety Bonds
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Utah Credit Services Organizations
Utah credit services organizations are credit repair companies which are based in Utah.
Credit repair organizations are both regulated at the federal level — CROA (Credit Repair Organizations Act) — and regulated at the state level.
In Utah, at the state level, credit repair services organization are regulated by the Utah Department of Commerce, Division of Consumer Protection.
Utah Credit Services Organizations:
The purpose of credit services organization, in part, is to help consumers improve their credit report.
They do this by challenging credit entries on reports which are:
Reports, usually in the form of letters, are then sent to the respective credit bureaus — usually, but not exclusively, Equifax, Experian, and TransUnion.
The credit companies — called “credit bureaus” — are then required by law to investigate the claims, if they are not “frivolous”; and thereafter they must respond to the consumer with their findings.
Such findings by the bureaus may “delete” the negative information ; or they may improve the notation on the credit report; or they may “verify” the information as correct, leaving it unchanged.
Laws Governing Utah Credit Services Organizations
Laws governing Utah credit repair companies relate on the whole to their relations with consumers.
The state government wants to ensure that customers are being treated fairly, told of their rights, and given full disclosure.
Therefore, Utah credit repair companies must, in writing:
- Provide consumers information on the totality of their payments to the credit services organization;
- Notify buyers of their right to cancel the contract within anytime prior to midnight of the 5th day of signing the application. This information must be clear and in large bold wring;
- Provide consumers with a clear description of the services which will be performed by the credit services organization;
- Any guarantees must be made known, and all conditions under which refunds –either in fully or partly,— will be provided to the consumer;
- Consumers must be informed of their right to file against the surety bond held by the Utah credit repair company should conditions be violated;
Becoming a Utah Credit Services Organization
A credit services organization wishing to operate in Utah must:
- Complete an application whether it is a new application or a renewal application ;
- Pay the application fee of $250, annually, which is non-refundable;
- Provide information regarding any legal proceedings against the credit services organization and the status of the case(s) whether the case originated in Utah or outside of the state;
- Obtain and maintain a Utah credit services organization services surety bond.
Utah Credit Services Organization Bond: Amount and Purpose
The Utah credit services organization bond must be held by Utah credit repair companies to lawfully operate in the state.
The bond is for $100,000.00.
The purpose of the bond is to protect consumers from acts of fraud or willful misrepresentation on the part of a Utah credit repair company.
Consumers who can demonstrate that they were defrauded by a Utah credit repair company may “file against” the Utah credit services organization bond to collect damages.
Utah Credit Services Organization Bond: Employees
Individual employees of a Utah credit repair company do not need to obtain their own surety bond.
The surety bond covers both the company and its employees.
Again, the bond is for the benefit of the consumer; it is not a liability insurance policy.
But the credit repair bond protects consumer from any claims arising by actions of the credit services company or its employees.
Utah Credit Services Organization Bond: Premium
The premium for the Utah credit services organization bond renews on an annual basis.
The cost for the bond will largely depend — as you undoubtedly know — on the applicant’s credit score.
AmeriPro Surety Bonds will work on your behalf to obtain the best pricing for the surety bond.
About AmeriPro Surety Bonds
AmeriPro Surety Bonds is a surety bond-only agency which provides credit services organization bonds in Utah, and all states where this bond is required.
We also provide license and permit, fiduciary, and contractor bonds in Utah and all 50 states.
We are always aware that our customers have choices in whom they choose to have work for them.
We work to provide the friendliest, most efficient surety bond services available.
And, we work to provide you the best pricing.