In Texas, credit service organizations, also known as credit repair companies, must be registered with the Secretary of State in order to conduct business. The $10,000 Credit Service Organization Surety Bond is used to make sure that customers are not swindled out of their money by the organization’s failure to complete services.
It only takes a few minutes to get your Credit Services Organization Bond with Jet! Click the button above to see what rate you are approved for.
Jet offers the Credit Repair Company Bond for as low as $25 per month or $125 per year. A soft credit check is needed to see what you qualify for, but don’t worry, it won’t impact your credit score. See the chart below for Jet’s starting rates at different term lengths.
Jet doesn’t work with middlemen as other insurance companies do—we work directly with you to keep unnecessary fees and costs out of your bond rate.
This bond is needed to make sure that you, as a credit repair organization, will complete the services that you are paid for. Such services can be:
If you do not hold up your end of the deal, the customer can seek reimbursement from the Credit Services Organization Bond.
It is also important to note that the bond is only required along with registration when the credit repair company takes money before their services have been completed.
You only need a minute or two to fill out an application for a Credit Services Organization. Jet makes it easy by taking out all the unnecessary parts of surety applications and leaving behind only what’s needed: basic business information (business name, address of each location, etc) and a social security number that is used for the credit check.
Once that is all done, you will find your approved quote ready for purchase. After you have submitted your payment information, Jet will mail the bond directly to the Secretary of State
Yes! After your payment is processed, Jet will prepare the bond form and can mail it directly to the Secretary of State’s Registrations Unit for filing. If you need to submit the bond yourself, simply select that option when you are checking out—Jet will mail the bond to you and you will need to mail it to:
Texas Secretary of State
PO Box 13550
Austin, TX 78711-3550
With Jet, it is possible for you to get a refund after cancelling a Credit Repair Company Bond. Send us written notice of cancellation (such as an email to email@example.com) and we will get in touch with the Secretary of State to get the 60-day cancellation period started.
Monthly payments will continue until the bond is fully cancelled, at which point, the payments will cease. For bonds that were purchased by the year, the remaining time left after the cancellation is finalized will be calculated into a refund.
The Credit Services Organization Bond must be renewed annually to make sure that it is active along with your registration. Monthly payments do this automatically since each payment made continues your coverage.
For annual terms, Jet will send you a renewal notice when your bond is ending. Just fill out the mailed notice or click the link in the email to complete the payment for your renewal premium and Jet will take care of the rest.
To prevent claims on your Credit Services Organization Bond, you must complete the services for which you were hired and paid: improving a customer’s credit, getting an extension of credit for a customer, or giving advice or other help in achieving those. The main objective of the bond is to prevent your customers from losing money when you accept their payment but don’t hold up your end of the deal. You are also obligated to follow Section 393 of the Texas Finance Code to prevent deceptive business practices.
If a customer does not receive services that they paid for, they can seek reimbursement by filing a claim on the Credit Services Organization Bond, or the state can make a claim on their behalf. Compensation can be up to the full $10,000 limit (but not over) and shall be for actual damages and reasonable court costs or attorney’s fees.
Jet will always look into claims to keep you from being falsely accused; but if the claim is found valid, we will have to pay out the claim. However, you are still the one responsible for the financial damage and will be held accountable by paying Jet back in the amount of the claim.
Yes! If a credit service organization operates out of more than one location, a separate Credit Service Organization Bond must be filed for each location.
Also, credit service organizations that have the specific functions of extending consumer credit for a motor vehicle title loan or a deferred presentment transaction will need to hold a surety bond that is $10,000 for a license (additional $10,000 per location or $2,500,000, whichever is less) or a surety account in trust in the same amount. This bond is different from the $10,000 Credit Service Organization Bond, as explained in Section 393.602 of the Finance Code.