Credit services organizations are regulated by Federal Code as well as by state statutes. Pursuant to Iowa Code 538A.4 and .5, a credit services organization must file a licensing request and an Iowa credit services organization surety bond. A credit services organization is a person who in return for the payment of money or other valuable consideration, provides counseling or advice on improving a buyer’s credit record, history, or rating, or assistance to an on-crecit buyer with his or her credit matters with regards to a pending purchase. Certain financial institutions and licensed financial professionals are exempt from the licensing requirement.
An Iowa credit services organization bond is one of the requirements of individuals and business entities seeking to offer services in the state. Pursuant to the regulatory statute, the surety bond must be filed with the secretary of state and in favor of the state for the benefit of any person who is damaged by CSO's violation of the regulations. The bond must be in an amount no less than ten thousand dollars ($10,000), be executed by a surety company authorized to do business in Iowa and be continuous in nature until canceled by surety. The Iowa credit services bond filing must be directed to:
Iowa Secretary of State
Credit Services Organization Registration
Lucas State Office Building, 1st Floor
Des Moines, IA 50319
Iowa statutes regulate CSO practices but do not nullify the Federal Code (15 U.S. Code §1679j) that also regulates the profession. There are specific acts prohibited under federal laws. The credit service organization bond may generally be claimed upon for violations of particular state rules, rather than the CRO Act however a credit services professional must clearly understand the federal regulations.
Iowa surety bond leader, SuretyOne.com is a specialist in the bonding needs of CSOs, debt adjustment and collection agencies. We offer both the surety bonds and fidelity bonds needed by credit service professionals in all fifty states, Puerto Rico and the U.S. Virgin Islands. Questions about this surety bond? Call us at (800) 373-2804, email us at Underwriting@SuretyOne.com or click here for live chat. A Iowa credit services organization bond is quick, easy and delivered in hours.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.