If you run a credit services organization in the state of Minnesota, then you are required to obtain a Minnesota Credit Services Organization Surety Bond and be registered (licensed).
A Credit Services Organization is a person or company who is engaged, for a fee, in providing consumers with the improvement of a consumer's credit history or rating or obtaining a consumer credit extension. The Credit Services Organization Bond ensures that consumers who hire a Credit Services Organization are protected for damages that may occur as a result of the actions of the Credit Services Organization.
Applicants can apply for their registration/license through the National Mortgage Licensing System (NMLS).
The application requirements are as follows:
Complete the application and pay the registration/license fee.
Provide a business plan, management chart, and an orgainizational chart.
A $10,000 surety bond is required for registration. The original bond will need to be mailed to the Department of Commerce. Bonds expire June 30 of each year.
Complete the Statement of State or Federal Litigation or Unresolved Complaint and the BCA form. Mail directly to the Department of Commerce along with the original bond.
Provide copies of document samples that will be used for business, including a disclosure statement, contract and a notice of cancellation.
Provide formation documents for general partnerships, corporations, limited liability companies, limited liability partnership, unicorporated associations, limited partnership. If a sole proprietor operating under a business name, provide a Certificate of Assumed Name.
Provide a copy of a Certificate of Authority or Good Standing Certificate.
If any of the disclosure statements were answered "yes," provide an explanation for each answer.
If operating under a trade name or dba, obtain a Certificate of Trade Name from the Minnesota Secretary of State and provide a copy with the application.
The premium that you pay for a Minnesota Credit Services Organization Bond is dependent on credit.
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