Washington State Credit Services Organization Bond/ WA Credit Repair Bond
AmeriPro Surety Bonds | 844-589-9732
Washington State Credit Repair Companies
Credit repair companies exist to legally challenge inaccurate, unverifiable, or untimely entries on credit reports for clients. They use any number of methods — some which are well known, others which are proprietary, to do just that.
Credit repair companies essentially “dispute” items on credit reports. This is usually accomplished by means of a written letter sent to the credit bureaus (Equifax, Experian, and TransUnion). These letters may also be faxed.
A few credit repair companies also dispute “online”, thereby eliminating the time it takes for a letter to get to the credit bureau to be reviewed by credit bureau personnel.
Many, if not practically all of these latter employees are outside the United States.
Despite a bad reputation in many quarters due in large part to unscrupulous activities by those within the industry, there is nothing illegal or deceptive about the credit repair industry in and of itself. If that were the case, the industry would not be regulated by the FCRA and state laws; instead, it would be outlawed entirely.
Qualifying and the Premium
Credit repair companies in Washington State are required to purchase a $10,000 surety bond, subject to the following exception:
According to Washington State law, if a credit repair company wishes to charge upfront for credit repair, before services are rendered, they must obtain the $10,000 surety bond. If they base their fees on performance and then charge after their services have been performed, then Washington State law does not require them to purchase a surety bond.
The credit services organization bond is issued in favor of the people of the state of Washington. It is not, therefore, a liability insurance policy for the credit repair company.
Rather, this bond protects clients of credit repair companies from unscrupulous activities of Washington State credit repair organizations.
The estimated premium for the $10,000 credit repair surety bond will be between $100 and $150 annually.
Right To Dispute Items on Credit Reports
Consumers do have the right to dispute items on their credit report which they believe are not 100% accurate in every respect.
This includes names, addresses, phone numbers, account entries, and any other items which they adjudge to be inaccurate in some manner.
If the disputes are not “frivolous”, credit bureaus are required to conduct a thorough investigation, and with a few exceptions, respond to a consumer within 30 days of receiving correspondence.
Federal Laws Regarding Credit Repair
The Fair Credit Reporting Act (FCRA) is the main body federal laws which govern the credit repair bureaus.
Credit Repair Organizations Act:
CROA (Credit Repair Organizations Act) are the main body of federal rules which regulate credit repair organizations, more commonly referred to as “credit repair companies”.
Why You Should Buy a Washington State Credit Repair Bond
Subject to the exception listed above, a credit repair organization may still choose to have a Washington State credit repair bond.
A reason to do so, even if you meet the exception outlined above, is that possession of this surety bond lends credibility to a credit repair organization; moreover, and more importantly, it protects your clients.
Since the majority of credit repair companies who are required to have may not have one, having this credit repair bond in force lends a certain level of credulity to your organization
We refer to these as “bragging rights”; however, confer with any legal counsel before making any decision on a credit repair bond.
AmeriPro Surety Bonds will help you to obtain your Washington state credit repair bond at the best available price.
We also provide all other fiduciary, license & permit, and court bonds for Washington and all US states.