Iowa Credit Services Organization Bond Guide
In Iowa, credit services organizations need a surety bond to apply for a license. Keep reading to learn more about the bonding process.
Bond Overview
- Purpose: To protect customers from fraud, misrepresentation or theft
- Who Needs It: Credit services organizations in Iowa
- Regulating Body: The Iowa Secretary of State
- Required Coverage: $10,000
- Premium Rate: $150 for a 1-year term
What Is an Iowa Credit Services Organization Bond?
An Iowa credit services organization (CSO) bond ensures that CSOs uphold state laws and regulations. The bond also protects customers from fraud or financial failure of the organization.
The Iowa Secretary of State requires this bond as part of the licensing process for all credit services organizations.
How Much Do Credit Services Organization Bonds Cost in Iowa?
The mandatory $10,000 credit services organization bond costs $150 for a 1-year term. Or, you can select a multi-year discount to make your cost as low as $113 per year of coverage.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does an Iowa CSO Bond Work?
A credit services organization bond is a legal agreement between three parties:
- Principal: The credit services organization
- Obligee: The Iowa Secretary of State
- Surety: The underwriting surety company
As the principal, you promise to uphold Iowa Code § 538A.4. If you fail to uphold the bond terms, anyone injured by your actions can file a claim up to the full bond amount.
Who Needs a Credit Services Organization Bond?
If you’re applying for an Iowa CSO license, you need a $10,000 surety bond. A credit services organization includes any business that offers services to improve a client's credit record, history or rating.
How Do I Get a Credit Services Organization Bond in Iowa?
SuretyBonds.com offers the fastest and easiest way to get an Iowa credit services organization bond. Simply enter your information on this page and pay for your bond online.
Be sure to submit the bond along with your CSO license application.
How Fast Can I Get My Bond?
Purchase and receive your CSO bond today with instant email delivery.
How Do I Renew My Credit Services Organization Bond?
This bond expires in one year. When you work with SuretyBonds.com, we’ll send you renewal reminders in advance.
As long as you pay the renewal invoice, this bond remains continuous until cancelled. However, the surety can cancel the bond by providing 30-day’s written notice to you and the Iowa Secretary of State.
How to Get a Credit Services Organization License in Iowa
To become a licensed credit services organization, follow these steps:
- Fill out the license application
- Pay the $50 filing fee
- Attach the bond form
Once you have completed the steps, submit your application to the address below:
Iowa Secretary of State
Credit Services Organization Registration
Lucas State Office Building, 1st Floor
Des Moines, Iowa 50319
