Surety Bond Professionals is a family-owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all your Florida credit repair bond needs.
What Are They?
Florida credit repair bonds are a type of license bond. The Florida Department of Banking and Finance requires them to provide financial protection for consumers who experience losses caused by the unlawful or unethical actions of a Florida credit services organization (CSO).
A CSO provides certain credit-related services for a fee, such as:
- Working to remove negative items from a consumer’s credit history to improve the client’s credit score.
- Helping a client obtain credit.
- Advising a client on credit repair techniques.
Typically, a client pays in advance for such credit repair services, which could result in a financial loss if the CSO fails to provide those services.
A Florida credit repair bond (also known as a Florida CSO bond) requires the CSO to abide by all applicable state statutes. If a CSO does not do so, the bond provides a source of funds for compensating consumers for any resulting financial loss up to the bond’s $10,000 amount (the bond’s “penal sum.”)
Who Needs Them?
If you’re applying for a new or renewal license as a CSO, you’ll need to purchase a Florida credit repair bond in the amount of $10,000. The bond must remain in force as long as you’re operating as a CSO in Florida to avoid suspension or revocation of your CSO license.
Speak with a Surety Bond Professionals agent today to discuss your bonding needs.
How Do They Work?
The surety bond agreement for a Florida credit repair bond is a legally binding contract between:
- The Florida Department of Banking and Finance—the “obligee” requiring the bond (and indemnified by it).
- The CSO—the “principal” required to purchase the bond as a condition for licensing
- The bonding company underwriting and approving the bond—the “surety”.
When an injured party files a claim for damages against a Florida credit repair bond, the surety will validate the claim and then pay it on behalf of the principal. However, the principal is legally obligated to pay valid claims and must therefore reimburse the surety.
What Do They Cost?
The premium for a Florida credit repair bond is a small percentage of the bond’s penal sum, that percentage being the premium rate. The surety’s main concern is the risk that the principal will not readily reimburse the surety for claims paid on their behalf. Consequently, the main factor in setting the premium rate is the principal’s personal credit score.
A principal with a high credit score should qualify for a premium rate between 1-3% of the Florida credit repair bond’s $10,000 penal sum. Lesser credit may result in a higher premium rate.
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Our surety bond professionals will get you the Florida credit repair bond you need at a competitive rate.