Credit services organizations are regulated by Federal Code as well as by Chapter 393 of the Finance Code and the secretary of state’s administrative rules found in 1 Texas Administrative Code Chapter 74. Sec. 393.001 of the Texas F.C. defines a CSO as, "a person who provides, or represents that the person can or will provide, for the payment of valuable consideration any of the following services with respect to the extension of consumer credit by others:
A Texas credit services organization surety bond must be issued in the amount of ten thousand dollars ($10,000). The bond must be issued by a surety company authorized to do business in Texas. The CSO bond run to the state for the benefit of any person damaged by a violation of this statute and rules. The Texas credit services bond filing must be directed to:
Texas Secretary of State
P O Box 13550
Austin, TX 78711-3550
Texas statutes and administrative rules regulate CSO practices in the state HOWEVER they 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.
Texas 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 Texas 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.