OHIO – The Division of Financial Institutions move to accepting surety bonds electronically for the Credit Services Organization Certification of Registration through the Nationwide Multistate Licensing System (NMLS) starting April 23, 2020.
No credit services organization can legally conduct business in the Stare of Ohio without obtaining a surety bond by an authorized surety bond company, according to the state’s “Credit Services Organization Act”.
According to the Act, a “Credit services organization” is defined as anyone who is paid for the follow:
- Improving a buyer’s credit record, history, or rating
- Obtaining an extension of credit by others for a buyer
- Providing advice or assistance to a buyer in regard to the previous qualifications
- Removing adverse credit information that is accurate and not obsolete from the buyer’s credit record, history, or rating
- Altering the buyer’s identification to prevent the display of the buyer’s credit record, history, or rating
Ohio requires a Credit Services Organization Surety Bond in the amount of $50,000, according to the Division of Financial Institution’s website.
A copy of the bond must be sent to the Division of Financial Institutions and must be “maintained and in effect for at least two years after the date on which the credit services organization ceases to conduct business in this state,” according to the Act.
NMLS also manages a few other company license types for Ohio:
- Money Transmitter License: $300,000 bond
- Short-Term Lender License: $100,000 bond
- Short-Term Lender Nonprofit License: $50,000 bond
Credit Services Organizations may find that they are also required to get similar surety bonds if they wish to do business in other states, such as a Credit Repair Surety Bond or Credit Counseling Surety Bond.
Information regarding the license types, bond forms and other information can be found on the ESB Adoption Map and Table posted on the NMLS Resource Center.
WHO TO CONTACT: The Ohio Division of Financial Institution can be reached by phone at 614.728.8400 or email at email@example.com for further assistance regarding Ohio-specific licensing requirements.
Alpha Surety & Insurance Brokerage will be happy to answer any questions regarding the Credit Services Organization Surety Bond or any surety bond questions in general. You can call 800-901-3099 or send an email through the contact us page. We are here to answer your questions and help you fully understand surety bonds whether or not you choose to bond with us.