Credit Services Organization Bond - Statewide in Pennsylvania

Brief Summary

Pennsylvania's Credit Services Act is run by the Department of Banking and Securities, and registrations and renewals under it are filed through the DoBS Portal, not NMLS. The bond is your guarantee to the Commonwealth and to your customers that you will follow the Act. Have DoBS confirm the amount and form, and the bond can be written to match.

A credit services organization bond in Pennsylvania is filed with the Department of Banking and Securities, which administers the Credit Services Act (73 P.S. §§ 2181 to 2192). The bond guarantees the organization will comply with the Act. Confirm the current bond amount and form with DoBS before the bond is issued, and register or renew through the DoBS Portal.

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How to Apply for a Credit Services Organization Bond:

• Set up a DoBS Portal account, where Credit Services Act registrations are filed and renewed.
• Ask DoBS to confirm the current bond amount and bond form before the bond is issued.
• Use the organization's exact legal name as it will appear on the DoBS registration.
• Provide owner and principal information for the surety's credit review.
• Pay the $300 nonrefundable registration fee set by 10 Pa. Code 42.3.
• Renew by December 1 each year with the $300 renewal fee to avoid the $100 late fee.

Detailed Information About the Pennsylvania Credit Services Organization Bond:

Where this filing goes

The Credit Services Act, Act 150 of 1992, is codified at 73 P.S. §§ 2181 to 2192 and is administered by the Pennsylvania Department of Banking and Securities. DoBS lists it under its Credit Services Loan Brokers program, and those registrations are filed and renewed online through the DoBS Portal rather than NMLS. Forming or registering the company itself with the Department of State is a separate step.

What the bond guarantees

The bond is a promise by a surety company that the organization will follow the Credit Services Act. If a consumer is harmed by a violation and the claim is valid, the surety pays up to the bond amount and then recovers that money from the organization. The bond protects customers. It does not insure the business against its own mistakes.

Amount and form

Confirm the current required amount, the bond form and the filing steps with the Department of Banking and Securities before the bond is issued, so the bond matches what DoBS will accept with the registration.

Registration fees and renewal

The Department's rules in 10 Pa. Code Chapter 42 set a nonrefundable registration fee of $300, with no abatement for any reason, and give the Department 60 days to approve, disapprove or ask for more information. Renewals are due by December 1 each year with a $300 renewal fee. A renewal filed after December 1 carries a $100 late fee. A renewed registration runs from February 1, or the date of the Department's written notice if later, through January 31 of the following year.

Who falls outside Chapter 42

The Chapter 42 definition of loan broker leaves out a person licensed or otherwise regulated by the Department as a loan broker under other statutes, and a person licensed, regulated or exempted under other statutes, including those administered by another Commonwealth agency or by the United States.

Eligibility and Requirements for a Pennsylvania Credit Services Organization Bond:

• Bond filed with the Pennsylvania Department of Banking and Securities.
• Bond amount and form as currently required by DoBS under the Credit Services Act.
• Organization name on the bond matching the DoBS Portal registration exactly.
• Annual renewal, with renewed registrations running February 1 through January 31.
• Department review of the application within 60 days of filing.

Pennsylvania Credit Services Organization Bond FAQs:

Official and Additional Resources for the Pennsylvania Credit Services Organization Bond: