SC Credit Counseling Organization Bond Guide
In South Carolina, most credit counseling organizations need a special deposit surety bond to register with the Department of Consumer Affairs.
Bond Overview
- Purpose: To ensure credit counseling organizations uphold state standards and operate ethically
- Who Needs It: All credit counseling organizations in South Carolina
- Regulating Body: The South Carolina Department of Consumer Affairs
- Required Amount: The value of trust account funds at the time of application, with a $25,000 minimum
- Premium Rates: Credit-based, starting at 1%
Keep scrolling to learn more about the bonding process.
What Is a South Carolina Credit Counseling Organization Bond?
A credit counseling special deposit bond protects clients from harm due to fraudulent or negligent practices. The South Carolina Department of Consumer Affairs (SCDCA) requires this type of license and permit bond to be eligible for licensure.
How Much Bond Coverage Do I Need?
The SCDCA requires a special deposit bond equal to the amount of clients’ funds in your organization’s trust account, with a minimum of $25,000. The Department uses the current amount held when applying or renewing your license.
How Much Do Credit Counseling Bonds Cost in South Carolina?
Credit counseling organization bond premiums are credit-based and typically cost around 1-2% of the total bond amount. For example, qualified applicants often pay just $250 for $25,000 in coverage.
Your exact rate will depend on your bond amount and financial qualifications. You may also be eligible for a multi-year term discount to save up to 25%. Apply below to get your free quote.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a South Carolina Credit Counseling Organization Bond Work?
A South Carolina credit counseling organization special deposit bond is a legal contract between three parties:
- Principal: The credit counseling organization purchasing the bond
- Obligee: The Department of Consumer Affairs requiring the bond
- Surety: The provider issuing the bond
Under this contract, you, as the principal, promise to uphold state regulations and manage client funds ethically.
If you break the bond terms, harmed parties can file claims on the bond. The surety will validate and pay claims up to the full bond amount. However, you are ultimately responsible for refunding the surety.
Who Needs a Credit Counseling Organization Bond?
South Carolina defines a credit counseling organization as any person that performs the following services for compensation:
- Distributes client funds to creditors
- Improves a client’s credit rating
- Negotiates with creditors to reduce debt
An organization must register in South Carolina if it solicits clients in the state, even if it’s located elsewhere.
Some types of credit assistance providers are exempt under South Carolina Code 37-7-10, such as mortgage brokers and certified public accountants.
How Do I Get a Credit Counseling Special Deposit Bond?
SuretyBonds.com provides the fastest and easiest way to get a South Carolina credit counseling organization bond. Follow these simple steps:
- Apply Online: Select your coverage amount and enter your information to receive a personalized quote
- Pay Invoice: Complete your purchase online or over the phone
- Receive Bond: Receive your official bond form via email
Upon receipt, sign and file the bond documentation with the SCDCA.
How Fast Can I Get My Bond?
SuretyBonds.com issues credit counseling organization bonds faster than any other provider. We process most bond applications same-day. Apply now to receive your free quote within one business day or less.
Can I Get Bonded With Bad Credit?
Yes, you may still be able to get bonded with bad credit. If poor credit results in a high rate, ask your account manager about premium financing options. This allows you to divide your bond premium across manageable installments rather than paying 100% of the cost upfront.
How Do I Renew My Credit Counseling Organization Bond?
Credit counseling organization bonds expire annually. When you work with SuretyBonds.com, we’ll send you reminders and a renewal invoice before your bond expires. All you need to do is pay the renewal premium to maintain coverage.
How to Open a Credit Counseling Organization in South Carolina
The Department of Consumer Affairs oversees licensing of credit counseling organizations in South Carolina. To apply, mail in a license application or file online via the SCDCA license portal.
You’ll need to attach the following supporting documents to your application:
- Proof of a surety bond in the required amount
- A financial statement for the current fiscal year
- Your organization’s contracts, fee schedule and other applicable forms
- A supplemental Form A for each owner, partner, or equivalent
- A supplemental Form B for each location
- Evidence of business registration with the Secretary of State or an IRS Exemption Letter
You’ll also need to pay the following fees:
- $100 per location
- $40 per counselor
- $50 investigation fee
In total, you can expect to pay $190 to get your credit counseling organization license, in addition to your surety bond premium and other state registration fees.
When Do Credit Counseling Organization Licenses Expire?
Credit counseling organization licenses expire annually on December 31. File the renewal application from September 1st through December 1st to remain active.
