CREDIT
SERVICES ORGANIZATIONS
The Division of Financial Institutions,
along with the Ohio Attorney General’s Office, regulates credit
services organizations pursuant to Chapter 4712 of the Ohio Revised
Code.
REGISTRATION
A person wishing to become a credit services organization must submit
an application, a fingerprint card, a license fee, a copy of the contract
to be used with customers, a surety bond in the amount of fifty thousand
dollars, and a registration fee. The Division must review the application
to ensure that the contract is acceptable, that the person does not
have a criminal record and that the bond is in the proper form and amount.
Certificates of registration may be renewed annually by filing a renewal
application and an annual registration renewal fee. If an office is
to be relocated, the registrant must obtain a new certificate of registration
from the Division prior to conducting business at the new location.
COMPLIANCE
Registrants must comply with specific recordkeeping, advertising, and
business practices as outlined by statute or rule. For example, all
credit services organization locations must be registered, the credit
services organization must provide written agreements with specific
contractual language to all consumers, fees may not be collected until
all the services contracted for by the consumer are performed, and certain
records must be maintained for two years.
The Division and the Attorney General can investigate registrants and
anyone who appears to be operating without a certificate of registration,
including issuing subpoenas, to ensure compliance with the law. The
Division may revoke, suspend or refuse to renew a certificate of registration
subject to the Administrative Procedures Act. The Division or the Attorney
General may bring a legal action to enjoin a violation of Chapter 4712
of the Ohio Revised Code and the Division may initiate criminal proceedings
for violation of Chapter 4712 by bringing evidence of the violation
to a county prosecutor in Ohio or to the Ohio Attorney General.
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