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How much does a Utah credit service organization bond cost?
The Division of Consumer Protection of the Utah Department of Commerce requires that all applicants wishing to become a Utah credit service organization (CSO)—sometimes called a credit repair company—must first submit a $100,000 surety bond as part of the registration process. Because of the risk associated with these bonds, as well as the large amount, applications must be submitted to underwriters, who will then review the applicant’s credit in order to determine an adequate premium amount that must be paid prior to issuing the bond.
The best way to find out exactly how much you’ll pay for your Utah surety bond is to request your free bond quote now!
If you’re ready to purchase a credit service organization surety bond in Utah, call SuretyBonds.com at 1 (800) 308-4358 or fill out our online bond request form now. We can provide your free, no-obligation bond quote within 1 business day of submitting your application!
Why do I need this bond?
Credit service organization bonds are obtained in order to protect the division, as well as all consumers, from suffering financial loss or damage due to the credit repair company’s failure to comply with state regulations—specifically by engaging in any prohibited activity included in Utah Code 12–21–3.
Should loss occur on the part of the division or the consumer, a claim of up to $100,000 may be brought against the CSO’s bond. Because the surety assumes that there will be no risk of financial loss when issuing these bonds, if a claim is made against the bond and the surety has to pay to settle it, then the CSO is responsible for ensuring that the surety is repaid.
Getting bonded is easy when you work with the experts at SuretyBonds.com! Click here to request your free bond quote now!
How long do I need this bond?
Surety bonds for credit service organizations in Utah are continuous and must be renewed annually—a process that must be repeated until one year after the credit servicing organization notifies the division in writing that it has ceased operations. However, the surety company does have the option to cancel the bond at any point during the term by providing 90 days’ advance notice in writing to the Division of Consumer Protection. If a CSO bond is canceled, the organization must contact the division immediately and obtain a new bond to ensure that they are not penalized.
How to become a credit service organization in Utah
As well as providing the division with a surety bond, those who wish to become a credit service organization must also submit an application that includes the following information
- $250 application fee (to be paid annually)
- Name, address and telephone number of the organization
- Name of any person who owns more than 5% of the organization
- Name of the individual responsible for day–to–day operations
- Background information regarding any administrative, civil or criminal action against the organization or its officers
- Detailed outline of credit services program to be offered in Utah, including two copies of any contract, form, sales literature, or other relevant document that will be used by the organization
See Utah Code 13-21- 3.5. Registration and suspension of registration in the Additional Resources section of this page for additional information regarding the registration process for credit service organizations.