Washington Credit Service Organization Bond Guide
Credit services organizations (CSOs) in Washington need a surety bond as part of the regulatory process. Learn how they work and get a free quote with this guide.
Bond Overview
- Purpose: To prevent financial loss if a credit repair company breaks rules and regulations
- Who Needs It: Companies that help customers get credit extensions, improve credit ratings, or prevent foreclosures
- Regulating Body: The Washington Secretary of State
- Required Coverage: $10,000
- Premium Rate: $100–$500, credit-based
What Is a Washington Credit Service Organization Bond?
A Washington credit service organization (CSO) bond ensures that credit repair companies will uphold state rules and regulations.
This type of surety bond protects the Secretary of State and consumers if a CSO acts illegally or unethically.
How Much Do Credit Service Organization Bonds Cost in Washington?
The state-required $10,000 bond costs a small percentage of the bond amount, typically 1–5%. Qualified applicants often pay just $100 for a Washington CSO bond.
Apply for your free, personalized quote now.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Washington CSO Bond Work?
A Washington credit service organization bond creates a legally-binding contact between three parties:
- Principal: The CSO filing the bond
- Obligee: The Washington Secretary of State requiring the bond
- Surety: The provider issuing the bond
As the principal, you are responsible for upholding all industry ordinances and regulations. If you break the bond terms, harmed parties can file bond claims for reimbursement.
The surety will pay out valid claims up to the $10,000 penal sum. However, you are responsible for repaying the surety in the end.
Who Needs a Credit Service Organization Bond?
According to Chapter 19.134 RCW, any credit service organization or credit repair business operating in Washington must maintain an active $10,000 CSO bond policy.
There is not a statewide credit service organization license. However, if you collect or solicit debts as part of the business, you may need a collection agency license.
How Do I Get a Credit Service Organization Bond in Washington?
With SuretyBonds.com, you can get your Washington CSO bond quickly and easily. Just follow these steps:
- Apply: Submit a quote request form
- Pay: Sign and pay for your bond online
- File: Submit the original bond form to the SoS
We process most bonds same-day when issued by 4 PM CST. You can select your preferred shipping method at checkout.
Can I Get Bonded With Bad Credit?
Yes, you can typically still get a CSO bond with bad credit! We approve 99.9% of applicants with our bad credit bonding options.
Keep in mind that credit score may impact your premium rate.
How Do I Renew My Credit Service Organization Bond?
These bonds expire annually. To renew, just pay your renewal invoice when prompted. You’ll receive a continuation certificate to file with the state as proof of coverage.
The surety can cancel the bond by providing 30-days written notice to the Secretary of State.
