Minnesota Credit Services Organization Bond Guide
To open a credit services organization in Minnesota, you must file a $10,000 bond. Use this guide to learn all about the bonding process.
Bond Overview
- Purpose: To ensure credit services organizations comply with state laws
- Who Needs It: Credit services organizations in Minnesota
- Regulating Body: The Minnesota Department of Commerce – Division of Financial Institutions
- Required Amount: $10,000
- Premium Rate: $150
What Is a Minnesota Credit Services Organization Bond?
Minnesota credit services organization bonds protect consumers from financial harm if the company acts illegally. This includes filing inaccurate reports and using deceptive credit assistance practices that violate the Credit Repair Organizations Act.
How Much Do Credit Services Organization Bonds Cost in Minnesota?
A $10,000 credit services organization bond is required to operate in Minnesota. Premium rates cost a flat rate of $150 for the 1 year term. Use the table below to purchase your bond instantly online.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Minnesota Credit Services Organization Bond Work?
A Minnesota credit services organization bond binds the following three parties in a legal agreement:
- Principal: The credit services organization filing the bond
- Obligee: The Minnesota Division of Financial Institutions requiring the bond
- Surety: The provider issuing the bond
What Happens If There Is a Bond Claim?
If the principal violates the bond terms, the surety will pay all valid claims up to $10,000. According to Minnesota Statutes 332.56, common bond violations include:
- Charging a client before completing the service
- Charging a client for a referral to a retail seller who will extend them credit
- Giving misleading advice
- Practicing fraud or deception
Ultimately, it will be on you, the principal, to reimburse the surety company for all damages.
Who Needs a Credit Services Organization Bond?
This bond is required for all credit services organizations in Minnesota that help consumers repair their credit scores for a fee. The main duties of a credit services organization are:
- Improving credit scores or ratings by updating credit report information
- Helping consumers get credit
- Providing credit advice
How Do I Get a Credit Services Organization Bond in Minnesota?
SuretyBonds.com provides the fastest and easiest way to get a credit services organization bond. Enter your information using the form above to buy your bond online in minutes.
After you check out, SuretyBonds.com will automatically upload your bond to the Nationwide Multistate Licensing System (NMLS).
Can I Get Bonded With Bad Credit?
Yes! This bond is available for instant purchase, so no credit check is required.
How Do I Renew My Credit Services Organization Bond?
All Minnesota credit services organization bonds last for one year. A SuretyBonds.com representative will send you an invoice before your bond expires. Simply pay the invoice to extend your bond into the next term.
How to Start a Credit Services Organization in Minnesota
To legally operate as a credit services organization, you must be licensed with the Minnesota Department of Commerce. To apply, purchase your $10,000 surety bond and gather the following materials:
- Business plan outlining marketing strategies, products/services and fee schedule
- Certificate of Authority
- Document samples of disclosure statements, contracts and notices of cancellation
- Document proving your legal status
- Management chart
- Ownership chart
- Statement of State or Federal Litigation or Unresolved Complaint
- Criminal background check form
- $1,000 fee for every business location
Use this NMLS license checklist to ensure you meet all the requirements. Then, upload everything into the NMLS license application portal.
If you need to make any changes to your application, update it within 30 days for your application to remain valid.
How Long Will My Credit Services Organization License Last?
Minnesota credit services organization licenses expire annually on June 30th. The Department of Commerce will send out a notice of renewal to all license holders in May.
To renew, update any information as needed and pay the $1,000 renewal fee. View the NMLS renewal requirements to learn more.
