Virginia Credit Services Business Bond Overview
- Purpose: To prevent financial loss if a credit repair company breaks rules and regulations
- Who Needs It: Credit repair companies in Virginia
- Regulating Body: The Virginia Department of Agriculture and Consumer Services (DACS), Office of Charitable and Regulatory Programs (OCRP)
- Bond Amount: $5,000–$50,000, equal to 100x the standard fee charged
- Minimum Price: $100 or 1%
What Is a Virginia Credit Services Business Bond?
A Virginia credit services business (CSB) bond is a form of financial security required to work in the state. Under the Virginia Credit Service Business Act, all credit repair company licensees need a minimum $5,000 bond to legally operate in the state.
Who Needs a Credit Services Business Bond?
A credit services business includes any entity that offers the following credit repair services in Virginia in exchange for a fee:
- Helping improve credit record, history or rating
- Getting a credit extension
- Advising or assisting clients with credit management or resolution
All licensed CSBs must file a minimum $5,000 bond with the DACS’ Office of Charitable and Regulatory Programs (OCRP).
There is a separate Virginia Credit Counselor/Debt Management Bond requirement.
Bond Coverage Requirements for Virginia CSBs
Your credit services surety bond should equal 100 times the standard fee you plan to charge, with a $5,000 minimum and $50,000 maximum.
| Standard Client Fee | Required Bond Amount |
|---|---|
| $25 standard fee | $5,000 bond (min coverage) |
| $50 standard fee | $5,000 bond |
| $100 standard fee | $10,000 bond |
| $250 standard fee | $25,000 bond |
| $500 standard fee | $50,000 bond |
| $501+ standard fee | $50,000 bond (max coverage) |
How Much Do Credit Services Business Bonds Cost in Virginia?
Your bond premium rate will vary based on the coverage you need:
- $5,000-$25,000 bonds cost $15 per $1,000 in coverage, starting at $100.
- $25,001-$50,000 bonds start at a rate of 1% of the total bond amount. Your exact premium will depend on your credit score.
Buy now or request your free quote below.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Virginia Credit Services Business Bond Work?
A Virginia CSB bond creates a legally-binding contract between three parties: the principal, obligee and surety provider.
- Principal: The CSB owner filing the bond
- Obligee: The Virginia DACS’ Office of Charitable and Regulatory Programs
- Surety: The issuing surety provider
As the principal, you promise the OCRP that you will uphold the Virginia Credit Service Business Act. If you don’t, the state or harmed clients can file a bond claim for financial compensation.
The surety pays out valid bond claims up to the full bond account. Then, you have to repay the surety in full.
How Do I Get a Credit Services Business Bond in Virginia?
If you need a $25,000 or lower bond, you can checkout instantly online. For bonds over $25,000 coverage, submit a quick application form. We’ll provide your free quote within one business day or less.
How Do I File My Bond?
Once you buy your bond, we’ll email your official bond form. Be sure to file the bond with the Virginia DACS along with your license application.
Can I Get Bonded With Bad Credit?
These bonds do require a soft credit preview. Your personalized rate will vary based on credit score. However, we work with several surety markets to approve 99% of applicants. Apply today to see if you qualify.
How Do I Renew My CSB Bond?
Your bond will expire after one year. Rather than purchasing a new bond each year, you can simply renew your existing bond.
We’ll provide email and text updates. Let your surety account manager know if you need to update the bond amount. If not, simply pay the renewal invoice to extend your bond for another term.
How Do I Update My Bond Information?
If you need small updates to your bond, like a name change, contact your surety provider. We can often issue a bond rider document. This allows you to amend the original bond without needing to cancel and buy a new one.
How to Get a Credit Service Business License in Virginia
To open a credit service business in Virginia, you’ll need to register with the DACS office. Follow these steps:
- Register your business entity
- Buy a surety bond
- Complete the Credit Services Business Registration Form (OCRP-71)
- Mail in your application with a check for the $100 registration fee
Use this mailing address:
Virginia Department of Agriculture and Consumer Services
P.O. Box 526
Richmond, VA 23218-0526
