Louisiana Revised Statutes 9:3573.4 – Bond; trust account
Terms Used In Louisiana Revised Statutes 9:3573.4
- Credit repair services organization: means a person who, with respect to a buyer, in return for the payment of money or other valuable consideration, directly or indirectly, provides or represents that he can or will, directly or indirectly, provide any of the following services:
(a) Improving a buyer's credit record, history, or rating. See Louisiana Revised Statutes 9:3573.2
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Organization: means corporation, government or governmental subdivision or agency, trust, estate, partnership, cooperative, or association. See Louisiana Revised Statutes 9:3516
- Person: means an individual, corporation, partnership, trust, association, joint venture pool, syndicate, sole proprietorship, unincorporated organization, or any other form of entity not specifically listed herein. See Louisiana Revised Statutes 9:3573.2
- Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
- Trustee: A person or institution holding and administering property in trust.
A. All credit repair services organizations shall obtain a surety bond issued by a company licensed to do business in Louisiana.
B. The bond shall be filed with the attorney general of Louisiana.
C. The bond must be in favor of the state of Louisiana for the benefit of any person who is damaged by any violation of this Part.
D. Any persons claiming against the bond for a violation of this Part may maintain an action at law against the credit repair services organization and against the surety or trustee. The surety or trustee shall be liable only for damages awarded under La. Rev. Stat. 9:3573.10 and not the punitive damages permitted under that Section. The aggregate liability of the surety or trustee to all persons damaged by a credit repair services organization‘s violation of this Part shall not exceed the amount of the bond or trust account.
E. The bond shall be in the amount of one hundred thousand dollars.
F. The credit repair services organization shall notify the attorney general in writing within thirty days after it has ceased to do business in this state.
G. The failure to obtain or file the bond as required by this Section shall constitute a violation of this Part for purposes of civil or criminal remedies or penalties.
Acts 1992, No. 345, §1; Acts 2003, No. 1027, §1, eff. Dec. 31, 2003; Acts 2004, No. 79, §1, eff. May 28, 2004; Acts 2006, No. 190, §1; Acts 2008, No. 858, §1, eff. July 9, 2008; Acts 2009, No. 76, §1.