A newly enacted Indiana statute requires all credit services organizations, including foreclosure consultants, to file an Indiana credit services organization surety bond with the Office of the Indiana Attorney General before doing business in the state. The purpose of the surety bond is to provide a remedy for consumers who are damaged by a violation of the consumer protections laws that regulate credit service companies during the course of a credit services transaction.
Under Indiana Code ch. 24-5-15, a credit services organization must, before doing business in Indiana:
- Obtain a $25,000 surety bond from a company authorized to do business in Indiana
- File a copy of that Indiana surety bond form with the Office of the Attorney General
According to the A.G.’s website, they intend to strictly enforce the new requirement. The Office has stated, “Failure to obtain and file a surety bond before doing business in Indiana constitutes a deceptive act that is actionable by the Office and may be subject to fines, penalties, and other remedies.” For further information or to better understand if you are a credit services organization or foreclosure consultant, see Indiana Code ch. 24-5-15 and/or Indiana Code ch. 24-5.5-5. Your work may fall within the statutory description.
The surety bond form is not overly onerous, however the provisions do allow any party to bring an action against the bond. The obligation is not cumulative and surety does have the right to cancellation should it choose to do so. The final provision does give the bond a two year claims “tail”. You may view the state surety bond form here.
Indiana surety leader, Surety One, Inc. will issue this class of surety bond for ALL applicants, regardless of credit condition. Do you operate in multiple states? We offer these in EVERY state where credit services organization surety bonds and foreclosure consultant surety bonds are required. We also offer broad fidelity bond coverages to protect your business from employee dishonesty losses. Visit us at SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email Underwriting@SuretyOne.com for an Indiana surety bond application or further information about surety bonding.