Credit Services Organization (CSO)
CSOs were formerly defined as credit repair companies, and are any establishment that provides payment in order to extend consumer credit. CSOs are regulated by the government to ensure that all stipulations are met and that consumers don’t pay outrageous fees for help with credit repair.
Credit Access Business (CAB)
The term credit access business is used in some states to refer to the new model of CSOs. Payday loan companies and car title loan companies are required to have a CAB license that is more specific and detailed regarding the laws of these loans. A credit service organization (CSO) was the former model and was an all-encompassing establishment that did little to regulate how loans are given and paid back. The CAB license was created by lawmakers in an attempt to define strict parameters and regulations for the borrowing industry.