Collector / Repossessor ($5,000) Bond - Statewide in Pennsylvania

Brief Summary

The $5,000 collector-repossessor bond is cheap insurance against a stalled license, as long as you count locations correctly. Pennsylvania wants a separate license and a separate $5,000 bond for every place of business, and a fresh bond every year ahead of the October 1 renewal. Get the count and the timing right and the bond never holds up a repossession contract.

Under 12 Pa.C.S. 6213, every Pennsylvania collector-repossessor license application must be accompanied by a $5,000 bond executed to the Commonwealth, on the form the Department of Banking and Securities prescribes. Section 6219 requires a bond for each place of business, and Section 6216 requires a new bond with each annual renewal, filed at least 15 days before October 1. Regular employees of an installment seller or sales finance company are not collector-repossessors.

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How to Apply for a Collector / Repossessor ($5,000) Bond:

• Confirm you work as an independent contractor and not as a regular employee of an installment seller or sales finance company.
• Count every place of business in Pennsylvania. Each one needs its own license application, fee and $5,000 bond.
• Have a surety authorized in Pennsylvania execute the bond on the Department's prescribed form, made out to the Commonwealth.
• File the license application and bond with the Department of Banking and Securities through the DoBS Portal.
• Watch for the Renewal Application task in the DoBS Portal by July 15.
• File the renewal with a new bond at least 15 days before October 1 every year.

Detailed Information About the Pennsylvania Collector / Repossessor ($5,000) Bond:

Who needs the license

Pennsylvania's Motor Vehicle Sales Finance law, 12 Pa.C.S. Chapter 62, defines a collector-repossessor as a person who, as an independent contractor and not as a regular employee of an installment seller or a sales finance company, collects payments on installment sale contracts or repossesses motor vehicles that are the subject of installment sale contracts. Section 6211 requires a collector-repossessor to be licensed by the Department of Banking and Securities. If you repossess or collect only as a regular employee of a dealer or finance company, you are outside the definition.

One bond per location

This is the point most applicants miss. Section 6219 requires a separate license application, a separate license fee and a separate Section 6213 bond for each place of business a collector-repossessor conducts in Pennsylvania. Two offices means two $5,000 bonds.

The bond

Section 6213 sets the amount at $5,000 for a collector-repossessor, compared with $10,000 for a sales finance company. The bond must be on the form prescribed by the Department and executed by a surety company authorized to do business in Pennsylvania. It runs to the Commonwealth and is for the use of the Commonwealth and any person aggrieved by the licensee's misconduct. It is conditioned on the licensee complying with Chapter 62 and the Department's rules and regulations, and paying to the Commonwealth, the Department or any person all money due under the chapter. Section 6213 also sets the conditions under which an aggrieved person can bring suit on the bond.

License year and renewal

Licenses are valid for one year and expire October 1. The Department's guidance describes the license period as October 1 through September 30 and says a Renewal Application task appears in the DoBS Portal no later than July 15. Under Section 6216, the renewal application must be filed at least 15 days before October 1, and it must include a new bond under Section 6213 along with the license fee for each license and place of business. License fees are set by section 603-A of The Administrative Code of 1929. Licenses cannot be transferred or assigned.

Eligibility and Requirements for a Pennsylvania Collector / Repossessor ($5,000) Bond:

• Bond amount of $5,000 for each collector-repossessor place of business.
• Bond executed to the Commonwealth on the form prescribed by the Department.
• Surety company authorized to transact business in Pennsylvania.
• Bond conditioned on compliance with 12 Pa.C.S. Chapter 62 and payment of all money due under it.
• New bond with each annual renewal, filed at least 15 days before October 1.
• Underwriting review of the owners' credit, which sets the premium.

Pennsylvania Collector / Repossessor ($5,000) Bond FAQs:

Official and Additional Resources for the Pennsylvania Collector / Repossessor ($5,000) Bond: