Pursuant to the Consumer Discount Company Act a licensed domestic enterprise must file a Pennsylvania consumer discount company bond and fulfill very specific licensing requirements. Per Section 3. of the statute, "An enterprise in the business of making loans or advances of money on credit in the amount or value of twenty five thousand dollars ($25,000) or less that charges, and or collects interest, discounts, bonuses, fees, fines, commissions or any consideration which aggregate in excess of the interest that the lender would otherwise be permitted by law to charge if not licensed under this law must be licensed the the Department of Banking and Securities (PA DBS).
Per Section 5., "The Pennsylvania consumer discount company bond must be issued in the amount of five thousand dollars ($5,000) and must be delivered with each application for a license. The surety bond must be executed by a surety company authorized by the laws of Pennsylvania to transact surety business and renewed annually no later than the first of June, for the first three consecutive years from the date on which the first licensee was issued. The surety bond must run to the Commonwealth of Pennsylvania for the use of the Commonwealth and for any person or persons who may have a cause of action against the operator. The consumer discount company bond guarantees that the licensee will comply with all the provisions of the Act and all the rules and regulations of the Secretary of Banking, issued in accordance with the Act and pay to the Secretary of Banking or to any person or persons, all monies that may come due. If any person damaged by the misconduct of an operator and obtains a judgment against him or her licensee, that person may upon execution ona such judgment claim on the surety bond if the Secretary of Banking consents. A separate surety bond must be posted for each place of business operated by a licensee. After three (3) consecutive years of uninterrupted business operations the surety bond does not have to be renewed unless the Secretary of Banking has reason to believe that bonding is necessary and notifies the business in writing before the 1st of May of the license year that ongoing bonding will be required. The bond (to accompany application materials) may be delivered to:
Pennsylvania Department of Banking and Securities
Market Square Plaza
17 N. Second Street, Suite 1300
Harrisburg, PA 17101
Pennsylvania surety bond leader, Surety One, Inc. is a specialist in the bonding needs of the commercial and micro-loan industry. We offer both the surety and fidelity bonds required of finance professionals in ALL fifty states, Puerto Rico and the U.S. Virgin Islands. Do you operate in multiple states? Volume discounts are available Call us at (800) 373-2804, email us at Underwriting@SuretyOne.com or click here for live chat to discuss a Pennsylvania consumer discount company bond application or information on ANY surety or fidelity bond need.
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