If you are a motor vehicle sales financing company in Pennsylvania, you are regulated by the Pennsylvania Department of Banking and Securities and, by statute, according to Title 12 of the 2014 Pennsylvania Consolidated Statutes.
As a condition of obtaining a license to finance the sales of motor vehicles in the Commonwealth, you are required to obtain a $10,000 surety bond.
AmeriPro Surety Bonds provides this surety bond in the amount required.
The purpose of the motor vehicle finance company bond is to act as a financial guarantee for your customers.
More specifically, the bond protects your customers --- Pennsylvania consumers –- from acts of theft, fraud, criminal malfeasance or misconduct caused by a sales financing company in the performance of their professional duties as such conduct adversely affects members of the public.
The protections afforded to the public extend also to the above misconduct committed by employees, agents, and owners of a vehicle financing company.
To be clear, this surety bond is not an insurance policy which protects the sales financing company.
Rather, it is a policy which a sales financing company (or its owners) purchases to protect others from their own misdeeds.
Should a claim be paid on the bond, it is the legal responsibility of the bond’s owner (in surety lingo, you are called “the principal”) to reimburse the surety for all costs involved in the settlement of any claims.
The $10,000 Pennsylvania motor vehicle finance company bond will have an annual premium which is only a small fraction of the bond’s face amount.
Applicants may expect to pay as little as a few percentages (and possibly even less) for this bond; however, the amount you will be required to pay may vary.
Your premium amount will be determined by an application and a corresponding credit check.
Once issued, the motor vehicle finance bond must be kept active at all times.
The bond renews annually, and notice will be mailed to you well ahead of time for the renewal premium due.
Your PA motor vehicle finance company license renews annually on October 1st.
The surety bond must be renewed and refiled each year no later than September 15th.
The Commonwealth offers serious applicants for the auto company finance license a detailed application.
In addition to the surety bond requirement, as part of the application process you will:
AmeriPro Surety Bonds is a surety bonds-only agency which provides license and permit, contractor, court, and fiduciary bonds throughout the Commonwealth.
We also provide surety bonds nationwide.
Since our exclusive concentration is surety bonds, you can take confidence that your surety bond is our only focus.
Please call AmeriPro Surety Bonds today: