Credit services organizations are regulated by Federal Code and currently twenty three states expressly. A Wisconsin credit services organization bond is one of the requirements of parties seeking to offer services in the state. Pursuant to W.S. §422.501, a credit services organization is a person or business entity that, with respect to the extension of credit by others, sells, provides or performs any of the following services in return for remuneration:
A candidate for licensing must submit all forms that he or she intends to use in the course of business, fee and a Wisconsin credit services organization bond. Pursuant to §422.502(3)(a), the surety bond surety bond must be issued by a surety company admitted to do business in the state an amount equal to twenty five thousand dollars ($25,000) and be filed with the administrator. The CSO bond must run to the state for the benefit of any person who is damaged by a violation of the statutes as well as to any person damaged by a violation. A licensee's certificate of registration as a credit services organization expires on December 1st of the even-numbered year after issuance at which time the licensee must refile or continue the credit services organization bond. The contract and advisory documents that the CSO intends to use in business must be submitted with the surety bond to the Administrator at:
Department of Financial Institutions
Bureau of Consumer Affairs
PO Box 8041
Madison, WI 53707-8041
The state law restricts CSO practices but does not nullify the Federal Code (15 U.S. Code §1679j) that 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.
Wisconsin 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 Wisconsin credit services organization bond is quick, easy and delivered in hours.
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