The Texas Credit Services Organization Surety Bond is required by the Texas Secretary of State.
According to Chapter 393 of the Texas Finance Code, a Credit Services Organization is a person who provides, or represents that a person can or will provide, the following services in exchange for payment:
- Improving a consumer’s credit history or rating
- Obtaining an extension of consumer credit for a consumer
- Providing advice or assistance to a buyer in regard to the above items
Before conducting business in the State of Texas, each Credit Services Organization must register with the Texas Secretary of State. The registration statement must include:
- The name and address of the organization
- The name and address of each person who owns or controls at least 10% of the outstanding shares of stock in the Organization
- Full disclosure of any litigation or unresolved complaint relating to the operation of the organization filed with a governmental authority or a notarized statement that there has been no litigation.
In order to receive payment from a consumer before full completion of services, registered Credit Services Organizations must obtain a Surety Bond. The Texas Credit Services Organization Surety Bond ensures that the Organization will faithfully comply with Texas Finance Code, Chapter 393. Furthermore, the bond provides compensation to any person damaged by violation of the Finance Code. The Texas Credit Services Organization Surety Bond must be maintained two years after the cessation of business.
The required amount for the Texas Credit Services Organization Surety Bond is $10,000.
The Texas Credit Services Bond is continuous in nature; however, the Surety my cancel the bond at any time with 60-day written notice to the Secretary of State.
CLICK HERE for more information from the Texas Secretary of State.
Where can I get a Texas Credit Services Organization Surety Bond?
It does not take long to process a surety bond of this type. We offer an easy to use online application that can be completed in a matter of minutes. After applying, within one business day you will be contacted by one of our licensed agents with a firm quote. You just need to complete some paperwork, make payment and your surety bond will be mailed to you via USPS priority mail. Overnight delivery is also available.
Surety1 is licensed in all 50 states and is rated A+ by the Better Business Bureau. Surety1 has been writing surety bonds in Texas since 2003.