License & Permit
Credit Repair Organization Bond
A credit repair organization bond is a license-type bond some states require from businesses that charge consumers to improve their credit records or credit scores.
- Required by
- State consumer protection or financial regulators (for example, Florida for credit service organizations)
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond promises the state, for the benefit of consumers, that the company will follow the state's credit services law. A consumer harmed by a violation, such as taking fees for work never done, can make a claim. In Florida, the bond is what lets a credit service organization take payment before it has fully performed.
Who needs it
- Credit repair companies
- Credit service organizations
- Businesses offering to remove negative items from credit reports
What the underwriter looks at
- Personal credit of the owners
- Business experience and complaint history
- Financial statements
- State bond amount
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
How much is the bond in Florida?
Florida law requires a $10,000 surety bond from a credit service organization that wants to collect payment before it fully performs its services. It must also keep a trust account at a Florida bank.
Does every state require this bond?
No. Requirements and amounts vary by state, and some states do not require a bond at all. Check the state where your customers live.
Does the bond protect my business?
No. It protects consumers. If the surety pays a claim, your company must pay the surety back.