How to start a Florida Credit Service Organization

How do I start a credit service organization in Florida?

Step 1: Ensure you meet eligibility requirements.

Verify your credit service organization, its salespeople, agents, representatives, and independent contractors don't do the following.

1. Charge or receive money before the credit service organization has agreed to perform full and complete services for a buyer, unless the credit service organization has a surety bond and has established a trust account at a federally insured bank or savings and loan association in Florida; if a credit service organization has obtained a surety bond and established a trust account, the credit service organization can charge or receive money before agreeing to perform full and complete services for a buyer but should deposit all money received in its trust account until services have been performed
2. Charge or receive any money or other valuable consideration solely for referral of the buyer to a retail seller or to any other credit grantor, who will or may extend credit to the buyer if the credit that is or will be extended to the buyer is upon substantially the same terms as those available to the general public
3. Make, or advise a buyer to make, any statement that is false or misleading, or omit any material fact to a consumer reporting agency or to any person who has extended credit to a buyer or to whom a buyer is applying for an extension of credit with respect to a buyer’s credit worthiness, credit standing, or credit capacity
4. Make or use any false, misleading, fraudulent, or deceitful, representations or omit any material fact in your credit service organization's service sales offer

Step 2: Draft your information statement.

You must provide the following information to consumers to comply with Florida Statute 817.702.

• Complete and accurate statement of the buyer’s right to review any file on the buyer maintained by any consumer reporting agency, as provided under the Federal Fair Credit Reporting Act, 15 U.S.C. ss. 1681-1681t
• Statement that the buyer may review their consumer reporting agency file at no charge if a request is made to the consumer reporting agency within 30 days after receiving notice that credit has been denied
• Approximate price a buyer will be charged by the consumer reporting agency to review their consumer reporting agency file
• Complete and accurate statement of the buyer’s right to dispute directly with a consumer reporting agency the completeness or accuracy of any item contained in any file on the buyer maintained by the consumer reporting agency
• Statement that accurate information cannot be permanently removed from the file of a consumer reporting agency
• Complete and detailed description of the service to be performed by the credit service organization for the buyer and the total amount the buyer will have to pay, or become obligated to pay, for the services
• Statement notifying the buyer of their right to proceed against the bond or trust account required under section 817.7005
• Name and address of the surety company that issued your surety bond OR your trust account name and address of the depository, trustee, and account number that provides financial security

Step 3: Purchase your Florida credit service organization surety bond.

Florida Statute 817.7005 requires credit service organizations file and maintain a $10,000 surety bond before providing services in the state. The Florida credit service organization surety bond specifically benefits any injured third party in the event a credit service organization fails to work faithfully and honestly according to Florida Statutes Chapter 817 Part III.

You can apply for your Florida credit service organization surety bond online 24/7. Your personal credit service organization bond invoice will be provided after a quick application review with annual premiums starting at $100.

You don't need to purchase and file a surety bond if you work as the following.

• credit service organization agent
• credit service organization salesperson
• credit service organization representative where the credit service organization obtains a surety bond and establishes a trust account