Credit Services Organizations/Foreclosure Consultants
A newly amended state law requires all credit services organizations, including foreclosure consultants, to file a surety bond with the Office of the Indiana Attorney General before doing business in Indiana. The purpose of the surety bond is to provide a remedy for consumers who are damaged by a violation of Indiana consumer protection law during the course of a credit services transaction.
Under Indiana Code ch. 24-5-15, a credit services organization must, before doing business in Indiana:
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Obtain a $25,000 surety bond from a company authorized to do business in Indiana
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File a copy of that surety bond with the Office of the Indiana Attorney General
Alternatively, a credit services organization may submit an irrevocable letter of credit for an equivalent amount that serves as a remedy to a consumer damaged in the course of a credit services transaction. If the bonding requirement is waived by the Indiana Attorney General’s Office in favor of the irrevocable letter of credit, a credit organization that obtains such a letter must file a copy with the Office before doing business in Indiana.
Failure to obtain and file a surety bond before doing business in Indiana constitutes a deceptive act that is actionable by the Office and may be subject to fines, penalties, and other remedies.
For further information or to better understand if you are a credit services organization or foreclosure consultant, see Indiana Code ch. 24-5-15 and/or Indiana Code ch. 24-5.5-5.
Consumers can review the lists below to determine whether a credit services organization or foreclosure consultant has filed a surety bond with the Office of the Indiana Attorney General.
To access the Foreclosure Consultant/Credit Services Organization Surety Bond form click here.
To view a list of Surety Bonds filed with the State of Indiana click here.
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