What is CSO Lending?
Very simply, a Credit Services Organization (CSO) provides consumers assistance with repairing their credit, and/or obtaining a loan in exchange for a fee. Several states have statutes that enable the establishment of CSOs.
A loan customer determines that a CSO may help them obtain consumer credit. Customers may contact the CSO in person, or via the Internet. The customer then signs an agreement with the CSO to provide credit services for a fee, and shortly thereafter undergoes an initial screening process to determine if the CSO is able to help. Assuming the CSO’s minimum threshold credit guidelines are met, the customer may then be referred to NCP to approve the loan. Based on an evaluation of the customer’s credit, NCP accepts or denies the loan application. Once the Loan is approved, the CSO assists the customer with signing NCP’s loan documents, and the loan is funded. To assist the customer with obtaining a loan approval, CSOs will provide secured guarantees and/or additional collateral for loans it refers to NCP.