Texas Credit Services Organization Bond

In order to obtain a Texas credit services organization registration, you have to post a $10,000 bond. It's important to note that this bond amount is distinct from your bond premium, which typically constitutes only a small percentage of the total. With stable finances, you can expect bond premiums ranging from 1% to 3%. For a $10,000 bond, you’ll only have to pay between $100 and $300.

The surety bond cost that you have to pay is calculated by examining a number of financial factors. Your surety has to assess your level of bonding risk by considering your personal credit score, business finances, assets and liquidity, and even professional experience. If your application is solid, you can expect to pay less for your bond.

1. Submit Your Application

To start the bonding process, simply complete our online application form. You'll be asked to provide additional details and essential documents to help us identify the specific type of bond you need, but rest assured, we'll walk you through each step, ensuring a smooth and stress-free experience.

We recently helped a Texas-based credit services organization obtain their credit services organization bond. Despite their industry know-how, they were unsure about the bond process and its effects on their business. We provided personalized guidance every step of the way, making the process easier to understand and comply with Texas regulations. Thanks to our teamwork, their launch was a big success, establishing them as a trusted credit services organization in the region.

2. Get a Bond Quote

Upon receiving your application, we promptly process it, aiming to find the best bond rate for you, using our industry expertise. Afterwards, we provide you a free quote and offer expert advice and clear instructions to simplify the bonding process.

3. Buy Your Bond

Once your bond premium is paid, you are officially bonded. Your bond will be emailed to you, with a paper copy sent via mail if necessary.

If you have any further questions, feel free to contact us.

According to section 393.302 of the Finance Code, individuals must submit a $10,000 credit services organization bond, also known as credit repair company bond, to obtain a license from the Texas Secretary of State for operating as a credit services organization. This bond ensures that credit services organizations (CSOs) comply with legal requirements and industry standards. If a CSO engages in unlawful or unethical behavior, affected parties have the option to file a claim against the bond. You’ll need to provide the bond in the official form. Additionally, If you have more than one location, you would need to post a bond for each of them.

Submit to:

SECRETARY OF STATE 
Registrations Unit
P O Box 13550Austin, TX 78711-3550

Under Section 393.101 of the Finance Code, credit services organizations (CSOs) must register with the secretary of state with Form 2801 before starting operations in Texas, unless exempt. To register, they need to provide proof of security or explain why it's not necessary, along with the registration fee of $100.

Additionally, CSOs must also obtain a license from the Office of the Consumer Credit Commissioner, besides registering with the Secretary of State.