Credit services organizations are regulated by Federal Code as well as the State of Ohio. Pursuant to OH §4712.02, a credit services organization Must file a registration application, a one-hundred-dollar fee and an Ohio credit services organization surety bond. With few exceptions, any individual or business that offers to improve a consumer's credit record, history, or rating, assists a consumer to obtain an extension of credit by others, to remove adverse credit information that is accurate and not obsolete from a consumer credit file or alter a consumer's identification to prevent the display of his or her credit history is in effect a CSO and must register.
An Ohio credit services organization bond is one of the requirements of individuals and business entities seeking to offer services in the state. Pursuant to Ohio Revised Code §4712.06, "no credit services organization may conduct business in the state unless the CSO has obtained a surety bond issued by a surety company authorized to do business in Ohio. The surety bond must run to "any person, and to the state for the benefit of any person, that is injured by any violation of sections 4712.01 to 4712.14 of the Revised Code." The surety bond must be written in the amount of fifty thousand dollars ($50,000) and remain in effect for at least two (2) years after the date on which the credit services organization ceases to conduct business. The Ohio credit services organization bond must be electronically filed as the regulatory authority is a participant in the NMLS system for e-licensing. Contact information for the Division is as follows:
Ohio Department Of Commerce
Division of Financial Institutions – OCA
77 South High Street, 21st Floor
Columbus, OH 43215-6120
Ohio state statutes regulate CSO practices but do not nullify the Federal Code (15 U.S. Code §1679j) that also regulates the activity. 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 so it is important to read and understand the regulations.
Ohio 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 Ohio credit services organization bond is quick, easy and delivered in hours.
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