What is a Credit Services Bond?
In Texas, there’s an important step that credit services organizations (CSOs) must take before they can obtain a business registration: purchasing a surety bond. Not only is this bond necessary to meet the state’s requirements. It also helps to protect the public by providing them with legal recourse if the CSO fails to comply with regulations and causes financial harm. By purchasing this type of insurance, CSOs can demonstrate their commitment to upholding professional standards and creating an environment of trust between themselves and their customers.
Who needs to purchase a credit service organization bond?
Credit service organization bonds are legally required in Texas for individuals or businesses who act as agents or brokers of any financial transaction involving deferred payment on a loan or credit transaction. These types of transactions are commonly used by pawnbrokers and payday lenders, as well as when tax payments are made through a third-party agency in lieu of a direct payment to the IRS. The bond ensures that those involved in any of these transactions fulfill the agreements they have put forth and protect any borrower against fraud or theft.
Requirements
Companies offering credit repair services must purchase a surety bond in order to operate legally in the state. Individuals interested in conducting a credit services business in the State of Texas are required by the Texas Secretary of State per Chapter 393 of the Finance Code, to obtain a $10,000 surety bond. Each location is required to have it’s own bond.
Buy Your Surety Bond Today with TMD Surety Bonds
At TMD, our goal is to simplify the process of providing surety bonds and make it stress-free.
These bonds are typically inexpensive and easy to obtain. TMD Surety Bonds does not require a credit check for this particular bond and has a set price of $150.00. CSO bonds exist to protect consumers from fraudulent activity and also ensure that the business in question adheres to all local and state ordinances and regulations.
The Credit Service Organization (Annual Bond) Bond is instantly approved and costs just $150.
Click the button below to purchase your Credit Service Organization Bond today.
Buy Your Surety Bond Today with TMD Surety Bonds
At TMD, our goal is to simplify the process of providing surety bonds and make it stress-free.
These bonds are typically inexpensive and easy to obtain. TMD Surety Bonds does not require a credit check for this particular bond and has a set price of $150.00. CSO bonds exist to protect consumers from fraudulent activity and also ensure that the business in question adheres to all local and state ordinances and regulations.
The Credit Service Organization (Annual Bond) Bond is instantly approved and costs just $150.
Click the button below to purchase your Credit Service Organization Bond today.
- Click the Buy Now button.
- Fill out the easy bond form.
- Confirm your order and select how you would like your bond documents delivered. Email or regular mail.
- Pay for your bond.
- If you chose to have your documents emailed, you will receive them within minutes.
It’s that simple and fast!
Bond Purchase Process
1. Find Your Bond
2. Secure Pricing
3. Buy Online
Get Started
The bonding process can be confusing and cumbersome. Our surety bond experts are standing by and ready to answer any questions. Let’s get you bonded today!
Frequently Asked Questions
There are hundreds of different bonds for all kinds of purposes—but regardless the industry or project—they all operate essentially the same way. A surety bond guarantees that you will operate professionally and if you break the rules, a claim can be made on your bond which you’re responsible to pay.
It’s a guarantee that you will complete the work and fulfill your contractual obligations. Think of it as insurance for the public, not your business.
For most bonds, you can get instantly approved and print bonds at your home or office. However, we do not offer instant approvals for a select number of bonds, as the underwriting process generally involves a more extensive review of the applicant.
The entity requiring the bond (the obligee) will determine whether a bond is required. Bond requirements vary greatly by your occupation and location. However, fidelity bonds are insurance and are usually optional to obtain.
For the most part, yes. Bad credit can increase rates for license and permit bonds and most can also get approved for fidelity bonds regardless of credit. For contract bonds, larger contractors with poor credit can be approved with strong CPA-prepared business financials.
Looking to Get Started or Have Questions?
The bonding process can be confusing and cumbersome. Our surety bond experts are standing by and ready to answer any questions. Let’s get you bonded today!