Pennsylvania Motor Vehicle Sales Finance Company Bond Guide
In Pennsylvania, most motor vehicle sales finance companies need to file a surety bond to register with the Department of Banking and Securities (DoBS).
Bond Overview
- Purpose: To ensure motor vehicle sales finance companies uphold state regulations
- Who Needs It: Most motor vehicle sales finance companies in Pennsylvania
- Regulating Body: The Pennsylvania Department of Banking and Securities
- Required Amount: $10,000
- Premium Rate: $100
Keep scrolling to learn more about the bonding process.
What Is a Pennsylvania Motor Vehicle Sales Finance Company Bond?
A Pennsylvania motor vehicle sales finance company bond protects clients from financial harm due to fraudulent or negligent business practices.
The Department of Banking and Securities requires this type of license and permit bond to operate in the state.
How Much Do Sales Finance Company Bonds Cost in Pennsylvania?
The Pennsylvania DoBS requires all motor vehicle sales finance companies to file a $10,000 surety bond.
The bond premium is a flat rate of $100 — no credit check required! Buy your bond instantly online now.
SuretyBonds.com offers the lowest available rates with no added fees.
How Does a Pennsylvania Motor Vehicle Sales Finance Company Bond Work?
A Pennsylvania motor vehicle sales finance company bond is a legal contract between three parties:
- Principal: The sales finance company purchasing the bond
- Obligee: The Pennsylvania Department of Banking and Securities requiring the bond
- Surety: The provider issuing the bond
Under this contract, you, as the principal, promise to uphold the PA Consumer Credit Code Title 12, Chapter 62.
If you break the bond terms, harmed parties can file claims. The surety will validate and pay claims up to the full bond amount. However, you are ultimately responsible for refunding the surety.
Who Needs a Sales Finance Company Bond?
In Pennsylvania, any person or company providing the following payment plan services must file a surety bond:
- Financing an installment sale contract as a third-party lender
- Buying, investing in, or lending money using an installment sale contract as security
However, there are some exemptions under the Consumer Credit Code Section 6229.
How Do I Get a Motor Vehicle Sales Finance Company Bond in Pennsylvania?
SuretyBonds.com provides the fastest and easiest way to get a motor vehicle sales finance company bond. Just follow these simple steps:
- Enter Your Information: Fill out the quick request form in our online portal
- Pay Invoice: Complete your purchase online or over the phone
- Receive Bond: Receive your official bond form via email
Upon receipt, sign and file the bond documentation with the DoBS.
How Fast Can I Get My Bond?
SuretyBonds.com offers instant Pennsylvania motor vehicle sales finance company surety bond delivery 24/7. Purchase now to receive your official bond in minutes by email.
Can I Get Bonded With Bad Credit?
Yes, this bond does not require a credit check! All applicants are automatically approved at the same price, regardless of credit score.
How Do I Renew My Motor Vehicle Sales Finance Company Bond?
PA motor vehicle sales finance company bonds expire annually. When you work with SuretyBonds.com, we’ll send you reminders and a renewal invoice before your bond expires.
All you need to do is pay the renewal premium to maintain coverage.
How to Open a Motor Vehicle Sales Finance Company in Pennsylvania
The Pennsylvania Department of Banking and Securities oversees licensure of all sales finance companies in the state.
Complete the application online through the DoBS licensing portal. Once approved, your license will be available in your DoBS account to print.
The DoBS may choose to inspect your finance company. On average, examinations occur every three to five years and cost $67.73 per hour.
When Do Sales Finance Company Licenses Expire?
PA sales finance company licenses expire annually on September 30.
The DoBS will issue your renewal application via the online portal by July 15. Pay the $350 renewal fee and submit proof of an up-to-date surety bond.
