Overview of California Seller of Travel Bond Requirements
The seller of travel bond’s purpose is to guarantee that businesses who offer such services will do so in an honest manner and comply with all legal requirements of the California Business and Professions Code that apply to them. In particular, the bond is to protect consumers from false advertising, misapplication of funds or misrepresentation on behalf of the seller, and all other fraudulent activities that lead to harm or losses.
If the seller does violate the law through any of the above actions, a claim can be filed against their bond, and compensation can be received by claimants. Such compensation can be up to the full bond amount, also known as the penal sum of the bond.
For a detailed explanation of how surety bonds work - see our ‘What is a surety bond’ guide!
Read more about the bond, its cost, how claims occur, and how you can get bonded below!
Give us a call at 866.450.3412 to find out more about the bonding requirements for sellers of travel in California.
Cost of Getting Bonded
The cost of your bond is a percentage of the total bond amount.
According to the BPC, sellers of travel in California who choose to obtain a bond as financial security when applying for a license must provide a bond in an amount at least equal to “all sums received from any person or entity, including, but not limited to, those payments made in cash, by credit card, or any other method of payment, for air or sea transportation for any person, or for any travel services offered by the seller of travel, and any refunds made by carriers or providers of travel services.”
Based on the above requirement, bond amounts for sellers of travel in California will vary from applicant to applicant.
Unlike with maintaining a trust account, an option also provided by the State Department of Justice, which requires the full sum specified above to be present, applicants who obtain a bond, only need to pay for the bond premium. The bond premium is a fraction of the full bond amount - it is determined by the surety when you apply for your bond.
The surety reviews applicants’ credit scores as well as various other personal financial indicators before setting a bond rate. Applicants with high scores are typically offered low rates on their bond. Those with the highest scores can have rates as low as .75% - 1.5% of the total bond amount. Applicants with slightly lower scores can expect a rate up to 2.5%.
Find out how much your bond will cost by submitting a surety bond application now, and we will provide you with a free quote.
Bad Credit Bond Program
Applicants for this type of bond who have a low credit score need not worry!
If your credit score is very low or you don’t have one at all, you can still get bonded thanks to our Bad Credit Program. This program is designed to meet the needs of such applicants, though bonds issued under it have higher rates than those for applicants with higher scores. But by working on their credit score over time, all such applicants can get increasingly better rates on their bonds.
Visit the program page for more information about this program, and to request a free quote!
Claims Against Your Bond
The travel of seller bond form in California states broadly that any violations of the whole Article 2.6. Sellers of Travel of Chapter 1 of Part 3 of Division 7 of the Business and Professions Code may result in a claim against the bond. Such violation can include presenting customers with misleading information, misrepresentation, misapplication of funds, fraud, dishonesty, and the like.
In the case of a claim against the seller of travel, the surety may extend compensation up to the full amount of the bond to make up for any losses or damages suffered by claimants. In return, as part of the surety bond agreement, the bonded seller of travel will need to repay the surety for such compensation.
Get Bonded Today!
To begin the bonding process, complete the surety bond application form and we will contact you with a free quote on your bond. We will also provide you with any additional details and requirements for completing the application process.
Once your bond is issued, which takes about two working days, we will forward it to you via email and standard mail.
Call us at 866.450.3412 anytime if you have any additional questions about this bond or about how to get bonded.
