The law requires credit repair companies to comply with the rules and regulations of the industry. If you want to achieve the same level of success as the best credit repair companies in the U.S., you might want to pay attention to the following credit repair laws in Florida.State and federal laws might not be the same. Therefore, those starting a credit repair business in Florida must comply with specific requirements such as those for bonds, licenses, and registration.
The Credit Repair Organization Act regulates the credit repair industry to protect consumers from dishonest credit repair companies. This will prevent credit repair companies from taking advantage of their consumers. Additionally, credit repair business laws and practices aid consumers to make informed decisions when planning to hire a credit repair company.
There are various rules, regulations, and requirements for each state in the U.S. If you decide to get into the credit repair industry in 2021 and you are doing business in Florida, you must abide by the laws in your state as well as the laws in the state in which your clients live. The authority for credit repair in the state is the Florida Department of State. You may also inquire about addenda or revisions in the state laws of Florida governing credit repair companies to ensure you’re appropriately abiding by them.
The state of Florida requires credit organizations to comply with the legislation, including the need for surety bonds. A surety bond ensures that the state, the surety bond company, and the credit repair company are bound.Credit repair companies can buy the bond from a surety company as it is required by the state of Florida. Any loss due to the harm caused by the credit repair company or due to a failure to perform will be covered by the bond.The payment for the bond is $10,000 as stipulated in the credit repair laws of Florida. Between 1% and 10% of the face value will be the cost for surety bonds based on the personal credit of the owner.
No specific requirements for credit repair licensing are needed in Florida, but you can check cities or counties that may require you to submit a local professional license, permit, or local tax receipt.Business licenses are needed for all business operations whether it’s a one-person or home-based venture. Some counties will also need you to apply for a license if in an unincorporated area. Therefore, you need to acquire a license for each credit repair office you might have in certain cities or counties.In order to establish credibility, a credit repair company may become a member of the National Foundation for Credit Counseling (NFCC) and hire counselors with an NFCC certification in any number of specialties such as housing loans and student credit.
Credit repair companies are also called credit service organizations (CSO) by state and federal governments. While some states need CSOs to register with one or more specific state agencies, the state of Florida doesn’t require credit repair companies to have a CSO registration.
The state of Florida has specific contract requirements. These include allowing consumers to cancel the contract any time within five business days after signing the contract. Furthermore, consumers must be allowed by CSOs to have a full refund within ten days from the time of signing the contract as mandated by the state.
Especially for credit repair merchant accounts considered high-risk, it’s crucial to understand credit repair laws in Florida to ensure you’re doing right by your clients and growing your business. Partner with a reputable credit card processor to set up payment processing for your business. Contact us to schedule a consultation today!