Illinois Credit Services Organization Bond Requirements
Applicants for a credit services organization registration in Illinois must submit a $100,000 credit services organization bond to the state Index Department.
To register a credit services organization, applicants must submit a Credit Services Organization Registration Statement, available at the Index Department’s website, along with the bond.
Why do I need a bond?
The main purpose of this bond is to guarantee that registered CSOs will comply with the Credit Services Organizations Act (815 Illinois Compiled Statutes 605).
It is intended to provide protection to any person who is damaged by any violation of the Act as a result of the actions of a registered credit services organization.
If a person is harmed, they may file a claim against the bond to seek compensation. This compensation is provided by the surety which has issued the bond. Compensation under a bond claim may be as much as the full $100,000 amount of your surety bond.
First time applying for a bond? See our detailed ‘What is a surety bond’ guide for a full explanation about how bonds work!
In the following sections, you can learn more about how much it costs to get a credit service organization bond in Illinois, what a bond claim is, and how to get bonded.
For any additional information and questions, call our bond professionals at 866.450.3412!
What Is the Cost of the Illinois Credit Services Organization Bond?
The cost of your bond, also called the bond premium, is equal to a percentage of the full amount of your bond. That percentage is determined by the surety company that issues the bond, as it takes into consideration the following factors:
Factors that determine your bond premium
Your personal credit score is the main factor that influences your bond premium. The higher your score, the lower the cost of your bond.
If you have a high credit score, you can expect to get bonded at rates starting at 1% of the total $100,000 bond amount.
Applicants with lower credit scores are bonded at slightly higher rates but not more than 5% of the total bond amount.
On top of your credit score, sureties will also consider some of the following prior to determining your premium:
- Personal and business financial statements
- Fixed and liquid assets
- Work experience and record
For an estimate of the cost of your bond, based on your credit score, see the table below!
|Illinois Credit Services Organization Bond Cost Based on Credit Score
|Above 700 - 600
|Illinois credit services organization
Why Do Bond Claims Occur?
Bond claims are the mechanism through which anyone harmed by a bonded party’s actions can seek compensation.
The Illinois Credit Services Organizations Act states that the bond required of CSOs registered in the state is for the benefit of anyone who is harmed by a CSO as a result of a violation of the Act.
When such a violation occurs, the harmed person can file a claim against the bond with the surety to obtain financial compensation. The surety then investigates the claim and determines whether compensation is due and in what amount.
Once a claimant is covered by the surety, the bonded CSO must repay the surety in full. This is part of the bond agreement that the organization signs when getting bonded.
Surety companies are never liable for the violations of a bond agreement on the part of the bonded party. For this reason, a bonded party is always responsible for any legitimate claims brought against the bond.
The best way to avoid a bond claim is to remain in compliance with the condition of the bond agreement.
How to Get a Credit Services Organization Bond
To apply for this type of bond, click on the banner below and complete the bond form.
We will then get in touch with you to provide you with a free quote on your bond and further information about the bonding process.
If you want to know more about getting an Illinois credit services organization bond, call us at 866.450.3412 anytime!