FOR ALL YOUR SURETY BOND NEEDS.
A Florida surety bond guarantees principal owners and the public that services will be performed with excellence and security. Florida legally requires a variety of contractors and organizations to secure bonds to conduct business across the public service industry. Single Source Insurance is a leading Florida bonding company. Apply easily online and take advantage of lowest rates. Browse the most common types of FL surety bonds, or contact us for a full list.
#1 Recommended Bond Agency in Florida
Credit repair surety bonds are required by the Florida Department of Banking and Finance from anyone seeking a license as a credit services organization (CSO). Also known as Florida Credit Services Organization Surety bonds or Florida CSO bonds, they serve as the CSO�s guarantee to do business in compliance with applicable Florida laws and the regulations of the Department of Banking and Finance. They also guarantee that there are funds available to any party with a valid claim against the bond for a financial loss stemming from the unlawful or unethical conduct of the principal.
CSOs are businesses that help consumers secure credit, improve their personal credit score, or negotiate with creditors on their behalf. If you are planning to offer any of these services, you�ll need to get licensed as a Florida CSO and purchase a Florida credit repair surety bond.
The CSO is one of three parties brought together in a legally binding surety bond contract. As the party required to purchase a credit repair bond, the CSO is the �principal� in the surety bond agreement. The Florida Department of Banking and Finance, which regulates the credit services industry, is the �obligee,� the party requiring the bond. The company that underwrites and issues the bond is known as the �surety.�
A consumer who has suffered a financial loss due to the principal�s violation of the terms of the surety bond agreement can seek compensation by filing a claim against the bond. It�s important to understand that although the surety will typically go ahead and pay a claim if efforts to negotiate an amicable settlement have failed, that�s actually not the surety�s responsibility.
The terms of every surety bond contract indemnify the surety and obligate the principal to pay all valid claims. But the surety recognizes that it may take the principal a little time to gather the necessary funds, which may require the liquidation of assets. By paying the claim and waiting to be reimbursed by the principal, the surety is essentially advancing credit to the principal. In a larger sense, by expediting payment of claims, the surety helps maintain consumer confidence in the credit services industry.
The Department of Banking and Finance established the required amount for Florida credit repair bonds at $10,000. The principal pays a small percentage of that amount as the annual bond premium. That percentage, the premium rate, is established for each bond based largely on the principal�s personal credit score, though other factors may also be considered.
The rule of thumb is the higher the principal�s credit score, the lower the bond premium rate. Good credit will get you a premium rate in the range of 1% to 3%, but a low credit score could result in a premium rate as high as 15%.
If you need a Florida credit repair surety bond, our experienced professionals are here to help you get one at an affordable rate.
