Licensing

Credit repair requirements by state.

26 of 50 states require a surety bond before you can legally accept a client. Every state (including bond-free ones) still enforces the federal Credit Repair Organizations Act — no fees before service, written contract, 3-day right to cancel.

Reference material only. Not legal advice — statutes and bond schedules change. Verify with your state Attorney General or a licensed attorney before applying.

Universal operational requirements

CROA Compliance (Federal)

15 U.S.C. §1679b bars collecting any fee before promised services are fully performed and requires a written contract with a 3-day right to cancel. Applies in all 50 states.

State Credit Services Organization (CSO) Registration

40+ states require CROs/CSOs to register with the Secretary of State or Attorney General. See the state table for specifics.

Surety Bond

$5,000 – $100,000 depending on state. Bond protects consumers against non-performance. Underwritten by carriers like Surety One, JW Surety, and Jet.

Errors & Omissions Insurance

Not legally required but required by most B2B lender partners and by AICreditFly for verified-pro status. Typical cost: $400–$1,200/yr for $1M coverage.

Data Security & Privacy

Must comply with GLBA Safeguards Rule (16 CFR 314) — a written information security program covering consumer credit data. Encrypted storage, MFA, breach notification.

State-by-state summary

StateBondStatutory requirement
Alabama$25,000Registration + $25k surety bond under Ala. Code §8-19-45.
AlaskaNot requiredNo dedicated CRO license; CROA + UDAP apply.
Arizona$100,000Registered under A.R.S. §44-1701; $100k bond.
Arkansas$10,000Registration + $10k bond, Ark. Code §4-91-101.
California$100,000Credit Services Act (CSOA) — Cal. Civ. §1789.10, $100k bond.
Colorado$100,000Registration + $100k bond under C.R.S. §12-14.5-201.
Connecticut$40,000Debt Adjuster / CRO license through Dept. of Banking.
DelawareNot requiredFollows CROA; no separate state license.
Florida$10,000Fla. Stat. §817.7005 — CROs must register & post $10k bond.
GeorgiaNot requiredDebt-adjustment activity restricted; consultative repair permitted.
HawaiiNot requiredFollows CROA; DCCA oversight for UDAP.
Idaho$15,000Registration + $15k bond, Idaho Code §26-2223.
Illinois$100,000Credit Services Organizations Act (815 ILCS 605).
Indiana$25,000Ind. Code §24-5-15; $25k bond.
Iowa$50,000Iowa Code §538A; $50k bond.
Kansas$25,000K.S.A. §50-1116; $25k bond.
KentuckyNot requiredFollows CROA; UDAP enforcement by AG.
Louisiana$100,000La. R.S. 9:3573; $100k bond.
MaineNot requiredFollows CROA; consumer credit protection oversight.
Maryland$10,000Md. Com. Law §14-1902; $10k bond.
MassachusettsNot requiredDebt-adjuster ban limits fee models; consultative allowed.
Michigan$10,000MCL §445.1822; $10k bond + registration.
Minnesota$10,000Minn. Stat. §332.54; $10k bond.
MississippiNot requiredFollows CROA; AG UDAP enforcement.
MissouriNot requiredFollows CROA; no dedicated CRO license.
MontanaNot requiredFollows CROA; consumer-protection oversight.
Nebraska$100,000Neb. Rev. Stat. §45-802; $100k bond.
Nevada$100,000NRS §598.741 — CRO registration + $100k bond.
New HampshireNot requiredFollows CROA + state UDAP.
New JerseyNot requiredDebt Adjuster Act limits business models; consultative OK.
New MexicoNot requiredFollows CROA; AG enforcement.
New York$10,000N.Y. Gen. Bus. §458-b; $10k bond + registration.
North CarolinaNot requiredN.C. Gen. Stat. §66-220 — no fees before service; strict UDAP.
North Dakota$5,000N.D. Cent. Code §13-06; $5k bond.
Ohio$100,000ORC §4712.02; $100k bond + registration.
OklahomaNot requiredFollows CROA + state consumer protection.
Oregon$10,000ORS §646A.712; $10k bond.
PennsylvaniaNot requiredDebt-settlement/adjuster tight; consultative repair permitted.
Rhode IslandNot requiredFollows CROA + state UDAP.
South CarolinaNot requiredS.C. Code §37-7-101 — no fees before service, disclosure required.
South DakotaNot requiredFollows CROA; no dedicated license.
Tennessee$100,000Tenn. Code §47-18-1004; $100k bond.
Texas$10,000Tex. Fin. Code Ch. 393 — CSO registration + $10k bond.
UtahNot requiredFollows CROA + Utah Consumer Sales Practices Act.
VermontNot requiredFollows CROA + state UDAP.
Virginia$5,000Va. Code §59.1-335.5; $5k bond.
Washington$5,000RCW §19.134; $5k bond + registration.
West VirginiaNot requiredFollows CROA + state UDAP.
WisconsinNot requiredFollows CROA; Dept. of Financial Institutions oversight.
WyomingNot requiredFollows CROA; no dedicated CRO license.