Overview of Louisiana Credit Services Organization Bond Requirements

Credit services organization bonds were put in place by the 1996 federal "Credit Repair Organizations Act". This act requires all credit repair organizations to obtain a surety bond as a protective measure for their clients. In Louisiana this bond is required by the Revised Statutes (RS) and must be posted to the Attorney General’s office.

Its purpose is to protect customers of such organizations against deceptive business practices as well as to ensure that buyers of such services are provided all necessary information.

If an organization violates these conditions and causes harms and losses to buyers, the latter can petition the Attorney General to file a claim against the bond to provide them with compensation. Such compensation can be up to the amount of the bond which is $100,000.

If you are new to surety bonds, read more about them in our detailed ‘What is a surety bond’ guide!

Start your surety bond application today! Why us?
  • The lowest possible rates
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  • Access to specialty programs, not available to small agencies

Find out more about this bond, how much it costs, how you can get bonded, and under what conditions a bond claim may arise.

You can always call us at (866)-450-3412 if you have any further questions about this or other bonds.

Cost of Your Bond

The cost of getting bonded is a percentage of the full amount of the bond. This bond’s full amount is $100,000. That’s the maximum amount of compensation that can be extended under the bond agreement.

The rate at which you can get bonded will depend on a number of factors which sureties asses when you apply. Since the amount of this bond is quite high and claims against this bond can be made within four years of a violation, sureties are quite specific when underwriting such bonds.

Your personal credit score is the most important factor that determines your bond cost, but sureties will also look at your financial statements, your liquidity and assets, as well as your industry experience and record.

If you have a high credit score, one of 700 FICO or above, you can expect to get a rate between .75% and 1.5% of the total amount of your bond. At a rate of 1% you would have to pay $1,000 to get bonded.

If you want to know how much exactly it would cost you to get bonded, complete our bond application form and we will provide you with a free quote on your bond!

Bad Credit Bond Program

With us, applicants with lower credit scores can also get bonded, thank to our Bad Credit Program!

Rates under this program are higher, due to the greater assumed risk of bonding applicants with lower scores. Since credit repair services bonds are treated with greater scrutiny by sureties, rates for bad credit applicants can be significantly higher.

The exact rate on a bond under this program depends on the circumstances of each separate applicants! Visit the program page and submit a bond application form, and we will provide you with a precise quote on your bond.

Bond Claims

This bond is conditioned upon the compliance with the Credit Repair Service Organization Act. If a credit repair services organization violates the requirements of the act, a claim can be filed against their bond under the RS 9:3573.4. Such violations include dishonest marketing and business practices, deceptive practices, fraud, misrepresentation and the like.

Under the provisions of RS 9:3573.10, a claim against this bond may result in compensation for actual damages suffered by clients of an organization as well as costs of suit and attorney fees. If the Act is violated wilfully by a credit repair services organization, claimants may have right to additional compensation in an amount equal to twice the actual damages.

In the case of a claim against such a bond, the surety backing the bond will extend compensation to claimants, up to the full amount of the bond. As part of the bond agreement, organizations need to repay the surety in full in the case of a claim.

Apply for Your Bond Today!

To start your bond application, complete and submit the bond form. We will then contact you with your free bond quote and further details on finalizing your application.

It will take about two working days for your bond to be issued once your application is complete. We will then forward it to you via email and standard mail.

Not ready to apply? Then simply get a free no-obligations quote, so you can see our low prices!

If you have any questions about this bond, call our surety experts at (866)-450-3412!


About the author:
Todd Bryant
Todd Bryant is a graduate of Germantown Academy and the University of Pittsburgh College of Business Administration Honors College. He has been President of Bryant Surety Bonds, Inc., an A+ rated Business with the Better Business Bureau, since 2007. Licensed as a producer with the Department of Insurance, he has been published in the National Association of Surety Bond Producers newsletter and on numerous authoritative publications such as The Washington Post, Entrepreneur.com, Azcentral.com and many more.