Pennsylvania CSO Bond Overview
- Purpose: To ensure CSOs fulfill their customer contracts and manage funds properly
- Who Needs It: Credit service organizations that collect prepayment for clients
- Regulating Body: The PN Department of State, Bureau of Corporations and Charitable Organizations
- Bond Amount: $5,000–$25,000
- Minimum Price: $100, or $15 per $1,000 of coverage
What Is a Pennsylvania Credit Service Organization Bond?
A Pennsylvania credit service organization (CSO) bond is a form of financial security required by the Department of State.
Consumer credit companies, such as debt counselors and credit repair providers, need to file a bond if they require prepayment for any services.
Who Needs a Credit Service Organization Bond?
If you plan to collect money before completing consumer credit services, you need a surety bond or a trust account. With a surety bond, you just pay a small premium rather than providing cash collateral.
As long as your organization has a bond, individual salespeople or agents you employ do not need their own bonds.
Bond Coverage Requirements for Pennsylvania CSOs
Pennsylvania CSO bonds must be at least $5,000 in coverage, but no more than $25,00. Your exact bond requirement will be equal to 5% of the total fees charged in the prior 12 months.
This coverage will be adjusted annually as needed. Be sure to increase your bond coverage if your business grows to stay compliant.
How Much Do CSO Bonds Cost in Pennsylvania?
Pennsylvania CSO bond prices cost $15 per $1,000 of coverage, with a $100 minimum. For example, a $20,000 bond would cost $200. You can buy your bond instantly online with no credit check.
Buy your bond online today. You can save 25% by selecting a multi-year term discount.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Pennsylvania Credit Service Organization Bond Work?
A credit service organization or credit repair surety bond creates a legal contract between three parties.
| Bond Party | Description |
|---|---|
| 1) Principal | The CSO owner filing the bond |
| 2) Obligee | The Pennsylvania Department of State requiring the bond |
| 3) Surety | The surety provider issuing the bond |
The Commonwealth of Pennsylvania or any client harmed because a CSO breaks the Credit Services Act can file a bond claim.
How Do I Get a Credit Service Organization Bond in Pennsylvania?
You can get your CSO bond online in minutes. Just follow these three steps:
- Select your term length
- Enter your personal and business information
- Submit payment information and checkout
We’ll email you the official bond form in minutes. Be sure to sign and file it with the Department of State as instructed.
How Do I Renew My Bond?
These bonds typically expire annually unless you select a multi-year term. When your bond expiration date is getting close, we’ll send you email and text reminders.
If your bond amounts need to be increased, email [email protected] for help. Otherwise, simply pay the renewal invoice. You’ll receive a continuation certificate as proof that you still have an active bond. You’ll need to file the certificate with the Department of State.
