Who requires it
Wisconsin Department of Financial Institutions — Bureau of Consumer Affairs
License & permit · Wisconsin
Wisconsin Credit Services Organization Bond
A person may not act as a credit services organization in Wisconsin unless registered with the administrator and compliant with the security requirement in Wis. Stat. § 422.502. The statute requires a $25,000 surety bond issued by a surety admitted in Wisconsin or an irrevocable letter of credit from a federally insured bank or savings and loan association located in Wisconsin. Security runs in favor of the state for the benefit of persons damaged by a subchapter V violation. The Department of Financial Institutions publishes Form BCA301 as a continuous $25,000 bond that the surety may cancel with sixty days’ notice to the Division.
Common bond amount
$25,000
Fixed face under Wis. Stat. § 422.502(3); bond or irrevocable letter of credit accepted.
How you file
File DFI Form BCA301, or a qualifying letter of credit
Renewal
Keep continuous while registered; 60-day surety cancellation notice to Division
Who requires it
Persons or merchants that, for a fee, improve a buyer’s credit record, arrange or obtain an extension of credit for a buyer, or advise on those services, as defined in Wis. Stat. § 422.501—subject to the statute’s exclusions for already-regulated lenders and other listed entities. Confirm your activity against the statutory definition and exclusions before registering.
How much is required
Wis. Stat. § 422.502(3) fixes the bond or letter of credit at twenty-five thousand dollars ($25,000). There is no volume formula on this registration instrument.
How to get and file it
Have a Wisconsin-licensed surety complete DFI Form BCA301 for $25,000, or obtain a qualifying $25,000 irrevocable letter of credit from an eligible Wisconsin-located depository. File the security with the Credit Services Organization Registration Application (Form BCA300) as DFI Bureau of Consumer Affairs instructs. Form BCA301 states the bond is continuous until canceled. The surety may cancel by giving sixty days’ notice to the Division; liability for future acts ends when that notice period expires, while prior covered acts remain within the bond’s terms. Keep registration and security current while offering credit services.
Cost note
Twenty-five thousand dollars is the required bond (or letter-of-credit) amount, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Required amount
- $25,000 surety bond or irrevocable letter of credit
- Who requires it / who it protects
- In favor of the state for persons damaged by a subchapter V violation
- Form
- DFI Form BCA301 (bond) with registration Form BCA300
- Cancellation
- 60 days’ notice to the Division on the official bond form
Official sources
Related resources
Frequently asked questions
Is a letter of credit allowed instead of a bond?
Yes. Wis. Stat. § 422.502(3) allows an irrevocable letter of credit from a federally insured bank or savings and loan association located in Wisconsin in place of the surety bond, in the same $25,000 amount.
Related Wisconsin bond guides
Collection Agency Bond
Volume-based from $25,000
Wisconsin collection agencies licensed under Wis. Stat. § 218.04 must maintain a surety bond sized from the Department of Financial Institutions’ annual volume schedule. The Division of Banking’s Collection Agency Annual Report (Form LFS420) translates annual collections (net of paid directs) into required amounts that begin at $25,000 and step up with volume. Bonds are maintained as electronic surety bonds in NMLS. The Division reserves the right under Wis. Stat. § 218.04(3)(d) to require a higher amount when needed to protect the public.
Mortgage Banker & Broker Bond
$300,000 banker; $120,000 broker
Applicants for Wisconsin mortgage banker or mortgage broker licenses must file a commercial surety bond under Wis. Stat. § 224.72(4)(am). Mortgage bankers post $300,000; mortgage brokers post $120,000. The bond must be issued by a surety authorized to do business in Wisconsin, secure faithful performance of banker or broker duties, and be payable to the division for the benefit of persons to whom the licensee provided mortgage banker or broker services. The bond form must provide that it may not be terminated without at least sixty days’ written notice to the division. When licensed branch locations exceed five, Wis. Admin. Code DFI-Bkg 40.05 requires a $10,000 increase for each additional licensed branch.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Continue with a Wisconsin application
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Last verified 2026-08-10. This guide is based on verified educational content and official sources.
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