Overview of Nevada Credit Services Organization Bond Requirements
Chapter 598 of the Nevada Revised Statutes (NRS) requires a credit services organization bond to be posted by applicants for a CSO license in the state. The bond must be posted to the Division of Mortgage Lending at the Department of Business and Industry in Nevada, and must be in an amount of $100,000.
The purpose of this bond is to guarantee that licensed CSO will comply with the NRS and to provide protection to consumers if and when a CSO goes bankrupt or violates any part of an agreement they have with a consumer as a CSO, as defined in Chapter 598.
In such a case, consumers may file a complaint to the Division, and a claim for compensation can be filed against the CSO’s bond. Such compensation may be as high as the full bond amount, also known as the penal sum.
If this is your first time applying for a bond, learn more about how bonds work through our detailed ‘What is a surety bond’ guide!
In the sections below you can find out more about how much your bond will cost, what constitutes a bond claim, and how you can get bonded.
Call our bond experts at 866.450.3412 anytime if you have any questions about the bonding requirements for credit service organizations in Nevada!
Bond Cost
The cost of getting bonded is equal to a fraction of the full amount of the bond. The amount of this bond is $100,000.
The exact cost of your bond depends on a number of factors which the surety takes into account prior to issuing a bond for you. Sureties primarily look at your personal credit score when determining a bond rate for you but they may also check your financial statements and other personal indicators of financial stability. The higher your score, the lower your rate!
For example, for applicants with a FICO score as high as 700 or more, the rate at which they can get bonded can be roughly between .75% and 1.5% of the bond amount. So, for applicants who get a 1% quote on their bond, the cost of their bond will be $1,000.
To determine how much exactly you would need to pay to get your bond, complete our bond application form and we will contact you with a free and precise quote on your bond!
Bad Credit Bond Program
Applicants with lower credit scores can at times experience difficulties in getting the bond they way.
Luckily, thanks to our Bad Credit Program, applicants with lower credit scores can get boned as easily and quickly as all applicants with higher scores.
Rates under this program are higher due to the increased perceived risk of bonding applicants with lower scores but such rates are not set in stone. Applicants who improve their credit score can see increasingly better rates on their bond over time!
To find out how much you might have to pay to get bonded under this program, make sure to submit a bond application form to get an exact quote!
Claims Against Your Bond
Claims occur when bonded parties violate the conditions of the bond agreement. In the case of this bond, the NRS 598.731 specifies that the bond is put in place to “be held in trust for consumers injured by the bankruptcy of the registrant or the registrant’s breach of any agreement entered into in his or her capacity as a registrant.”
If a consumer is injured in one of the above specified situations, and suffers damage and losses as a result, they may bring action in a court against the credit services organization. To compensate them, a claim is brought against the bond and an appropriate amount of compensation is extended on the basis of the surety bond agreement.
If a surety extends compensation to a claimant, the bonded credit services organization must then reimburse the surety in full. For this reason, it is best to avoid bond claims at all costs!
Apply for Your Bond Here!
Ready to get bonded? Submit a bond application form and we will contact you with a free and precise quote on your bond, along with further details on finalizing the application process.
It will take about two working days for your bond to be issued. After that we will send it to you via standard mail and provide you with a digital copy via email.
Do you have any further questions about this bond? Call us at 866.450.3412 anytime!
