Delaware Credit Services Organization Bond Guide
In Delaware, all credit services organizations that accept prepayment must file a surety bond.
Bond Overview
- Purpose: To ensure credit services organizations uphold state regulations and client contracts
- Who Needs It: All credit service businesses that accept prepayment
- Regulating Body: The Delaware Secretary of State
- Required Coverage: $15,000
- Premium Rate: Credit-based, starting at 1.5%
Keep scrolling to learn more about the bonding process.
What Is a Delaware Credit Services Organization Bond?
A credit services organization (CSO) bond ensures that companies offering credit repair or extension services uphold state regulations and properly manage client funds.
The Delaware Secretary of State (SOS) requires this type of license and permit bond for businesses offering prepaid credit services.
How Much Do Credit Services Organization Bonds Cost in Delaware?
Delaware credit services organization bond premiums are credit-based and cost 1.5–10% of the bond amount. Qualified applicants typically pay just $225 for the required $15,000 coverage.
You may also be eligible for a multi-year term discount to save 25%. Apply below for your free personalized quote.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Delaware CSO Bond Work?
A Delaware CSO bond is a legal contract between three parties:
- Principal: The credit services organization purchasing the bond
- Obligee: The Delaware Secretary of State requiring the bond
- Surety: The provider issuing the bond
You, as the principal, promise to uphold the provisions of the Delaware Credit Services Organizations Act.
If you break the bond terms, harmed parties can file claims. 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 CSO Bond?
In Delaware, an organization must register with the SOS and file a surety bond if it accepts prepayment for the following services:
- Helping improve a client’s credit score or history
- Assisting with extensions of credit
Alternatively, you can maintain a surety account to hold client funds. However, a surety bond is typically the most efficient option, requiring only a small upfront premium.
How Do I Get a Credit Services Organization Bond in Delaware?
SuretyBonds.com provides the fastest and easiest way to get a credit services organization bond in Delaware. Just follow these simple steps:
- Apply Online: Fill out the quote request form on this page
- Pay Invoice: Complete your purchase online or over the phone
- Receive Bond: Download your official bond form directly from your email
Upon receipt, sign and file the bond documentation with the SOS.
How Fast Can I Get My Bond?
We process most quote requests in one business day or less. Once you pay the premium, we’ll issue your official bond form via email in minutes.
Apply now to start the bonding process.
Can I Get Bonded With Bad Credit?
Yes, you may still be able to get bonded with bad credit. However, poor credit will likely increase your premium rate.
Apply for a free quote or visit our Surety Bond Cost FAQ page to see how credit may impact your cost.
How Do I Renew My CSO Bond?
Delaware CSO bonds expire annually. When you work with SuretyBonds.com, we’ll send you reminders and a renewal invoice before your bond expires.
To renew, just pay the premium — we’ll do the rest!
