Who requires it
Commonwealth of Massachusetts (G.L. c. 93 § 68B credit services restrictions)
License & permit · Massachusetts
Massachusetts Credit Services Organization Bond
A Massachusetts credit services organization may not charge or receive money before fully performing agreed services unless it maintains a surety bond of at least ten thousand dollars and has established a trust account at a federally insured bank or savings and loan association located in the commonwealth. G.L. c. 93 § 68B states that dual requirement. Organizations that do not take advance fees are outside the bond trigger in that section.
Common bond amount
$10,000+
Required with a Massachusetts trust account when charging before full performance; not required under § 68B if no advance fees are taken.
How you file
Surety (≥$10,000) plus Massachusetts federally insured trust account
Renewal
Keep bond and trust account while collecting advance fees; replace before cancellation
Who requires it
Credit services organizations, and persons selling their services, that charge or receive consideration before completing the contracted services for a Massachusetts buyer. If the organization never takes advance fees, § 68B’s bond-and-trust-account condition is not triggered by that advance-fee prohibition—confirm your fee model before skipping the filing. Attorney General opinions and consumer-protection guidance may illuminate enforcement practice but do not replace the statutory text.
How much is required
Section 68B requires a surety bond in an amount not less than ten thousand dollars issued by a surety authorized in Massachusetts, together with a trust account at a qualifying Massachusetts depository, when the organization charges before full performance. The statute sets a floor, not a volume scale. The bond is not required under that clause when no advance fees are charged.
How to get and file it
If you will charge before completing services, obtain a surety bond of at least ten thousand dollars from an authorized company and open the required trust account at a federally insured Massachusetts bank or savings and loan association. Keep both in place before accepting any advance payment from buyers. Maintain the bond and trust account for as long as the organization charges in advance of full performance. Replace the bond before cancellation so the statutory condition is never broken while advance fees are collected. Update coverage when the organization’s legal name changes.
Cost note
Ten thousand dollars is the required bond amount when advance fees are taken, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Required amount
- Surety bond of not less than $10,000 when charging before full performance
- Trust account
- Federally insured bank or savings and loan association located in Massachusetts
- Trigger
- Advance fees before complete performance of contracted credit services
- Authority
- G.L. c. 93 § 68B
Official sources
Related resources
Frequently asked questions
Do I need the $10,000 bond if I never take advance fees?
Section 68B’s bond-and-trust-account condition is tied to charging or receiving consideration before full, complete, and satisfactory performance. If you do not take advance fees, that particular restriction does not require the bond—confirm your pricing structure carefully before relying on the exception.
Is the bond enough by itself when I take advance fees?
No. The statute requires both a surety bond of at least ten thousand dollars and a trust account at a federally insured Massachusetts bank or savings and loan association. The bond alone does not satisfy § 68B.
Related Massachusetts bond guides
Debt Collector Bond
$25,000
Massachusetts debt collectors licensed under G.L. c. 93 §§ 24–26 must maintain a twenty-five-thousand-dollar surety bond running to the state treasurer. Section 25 fixes that sum and conditions the bond on turning collection proceeds over as agreed. Licensing and related rules appear in 209 CMR 18, and applications run through the Division of Banks on NMLS. The Commissioner may require additional security when circumstances warrant.
Mortgage Broker / Lender Bond
$75,000 (broker); $100,000–$500,000 (lender)
Massachusetts mortgage brokers licensed under G.L. c. 255E keep a seventy-five-thousand-dollar surety bond that stays in force while licensed. Mortgage lenders post a surety sized to Massachusetts residential loan volume—one hundred thousand, two hundred fifty thousand, or five hundred thousand dollars—under Division of Banks Regulatory Bulletin 5.2-101 and 209 CMR 42.00. Bonds are filed electronically through NMLS. A firm that holds both a broker and a lender license must keep both bonds in force. Mortgage loan originators are ordinarily covered by the sponsoring company’s bond; an individual twenty-five-thousand-dollar bond applies only when that coverage is unavailable.
Money Transmitter Bond
$100,000–$500,000
Massachusetts money transmitters licensed under the Money Transmission Act, G.L. c. 169B, must maintain a surety bond satisfactory to the Commissioner of Banks. Section 9 sets the amount at the greater of one hundred thousand dollars or one hundred percent of the licensee’s average daily money transmission liability in the commonwealth for the most recently completed three-month period, capped at five hundred thousand dollars. The Division of Banks administers the license and security requirement.
Used Motor Vehicle Dealer Bond
$25,000
Massachusetts Class 2 used motor vehicle dealers must post a twenty-five-thousand-dollar surety bond—or equivalent proof of financial responsibility—under G.L. c. 140 § 58. The instrument runs for the benefit of retail buyers who suffer defined losses from title, payment, odometer, warranty, or deceptive-practice failures. Each distinct business name and each city or town where the dealer maintains a place of business needs its own bond. Municipal licensing authorities issue and renew Class 2 licenses and receive the bond or collateral filing.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Continue with a Massachusetts application
Massachusetts will be preselected. Choose your bond type in the application—we confirm the correct product against your agency form before anything is issued.
Last verified 2026-08-11. This guide is based on verified educational content and official sources.
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