How To Get A Virginia Auto Dealer License

Nov 6 Posted on

Virginia motor vehicle dealers

Virginia motor vehicle dealers need to be licensed and bonded, as do dealers in most states. Keep reading to learn how the process works, or apply to get bonded today.

Get Bonded

Virginia Auto Dealer License Requirements

To get a Virginia motor vehicle dealers license, you must apply through the Commonwealth’s Motor Vehicle Dealer Board (MVDB). On the license application, dealers specify whether they will be a franchised or independent dealer. Franchised dealers have agreements with a vehicle manufacturer to sell their vehicles—whether new or used—while independent dealers sell only used cars.

Information Needed

Some of the information dealers need to provide to the MVDB includes:

License Prerequisites

The MVTRF Fund is used to reimburse consumers who have suffered damages because of a dealer’s illegal practices.�There are some other prerequisites for a Virginia auto dealer license:

  • Must have exclusive dealership space of at least 250 square feet
  • Must maintain dealer records as required by��46.2-1529 of the Code of Virginia
  • Must display business hours (at least 20 hours per week, 10 of which must be between 9 a.m. and 5 p.m. Monday through Friday)
  • Office must have a desk, chair, filing space, working business telephone listed to the dealership, internet connection, and email address
  • Space to display at least ten vehicles
  • Become a licensed salesperson (licensed dealer and employees that are salespeople)
  • Get a $50,000 surety bond�
  • Training courses as required

All license requirements can be found in the MVDB’s New Dealer Packet. You can find all the forms needed for application or renewal on the MVDB’s website.

VA Dealer Bonds

The standard surety bond required of Virginia motor vehicle dealers is a $50,000 bond. Dealers in the Commonwealth need to renew their surety bond for the first three years of licensure, plus the $350 MVTRF Fund fee. After three years, if no claim has been made against the dealer’s bond or against the Fund in their name, the dealer no longer needs to renew the surety bond. In addition, the annual $350 Fund fee drops to $100.

Get Bonded

Motor vehicle dealers can opt not to participate in the Fund at the time of license renewal. In this case, they need to post a $100,000 surety bond. Dealers only have this option as long as they have not been the subject of a bond or Fund claim for at least three years.

The bond serves as dealers’ guarantee that they’ll adhere to the provisions of the Code of Virginia pertaining to their license. If they do not, and a consumer suffers losses as a result, the bond provides a means of reimbursement.�Individuals can receive no more than $25,000 per claim on a $50,000 dealer surety bond, and no more than $20,000 per claim on a $100,000 dealer bond.

Ready to get bonded as a Virginia auto dealer? Get in touch with Single Source Insurance today!

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Oregon Financial Businesses to Use NMLS

Nov 3 Posted on

financial businessess

The Oregon Division of Financial Regulation has begun using the Nationwide Multistate Licensing System (NMLS) to accept applications for mortgage servicer and debt buyer licenses. The license applications were available through the NMLS beginning on November 1, 2017. Financial business licensee applicants in the state—including mortgage servicers—must also begin submitting Electronic Surety Bonds (ESBs).

Many states have adopted use of the NMLS for mortgage loan businesses, money transmitters, and other financial businesses. The system is not a substitute for state licensing entities, rather it serves as a state and federal record of all licensees�mortgage servicers, originators, lenders, collection agencies, etc. Most licenses issued by the Division already accept applications through the NMLS; mortgage loan servicers and debt buyers are both new licenses.

The mortgage loan servicer license is established from a mortgage loan originator license—a business offering both services needs both licenses. Mortgage loan servicers’ licensing rules are still being established, but the Division will begin issuing licenses on January 1, 2018. The Division asks for this and more information:

  • Any business trade names
  • Registered agent in Oregon
  • Completed MU-3 for any branch locations
  • $960 license and registration fee plus $100 NMLS processing fee
  • $15 for credit report for each control person
  • $36.25 for criminal background check for each control person
  • $50,000 surety bond
  • Financial statements less than six months old
  • Proof of each control person’s good character, financial responsibility, and general fitness to operate a financial business

Debt buyers’ licensing law takes effect on January 1, 2018 and separates them from collection agencies. These financial businesses submit much of the same information as other businesses, and pay a $450 licensing fee plus the $100 NMLS fee. Currently, they don’t have a surety bond requirement.

In conjunction with moving application submissions to NMLS, the state of Oregon has begun using ESBs for licensees’ bond requirements. ESBs have been adopted for several states’ licenses, and make it easier to track and maintain the bond. ESBs are no different from surety bonds—besides being a digital rather than physical document. The state of Oregon began using ESBs for financial businesses in April 2017. The state plans to convert surety bonds to ESBs for all financial businesses licensed through the NMLS (and that require a bond) by December 31, 2018. Those that do not convert their bond may be barred from license renewal.

Questions about ESBs or Oregon mortgage servicer surety bonds? Single Source Insurance is here to help!

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Arkansas Collection Agencies Need a Surety Bond

Nov 1 Posted on

�collection agencies

Collection agencies that are located in or that contact consumers in Arkansas need to be licensed and bonded. Here’s how to get a license and surety bond in the state.

Arkansas collection agency licensing

The state defines collection agencies as third parties collecting on a client’s behalf, meaning that companies that collect on accounts for themselves are not included in that definition. They receive licenses through the Arkansas State Board of Collection Agencies. Collection agency licensees need to submit the following information to the Board for consideration:

The applicant must also have good credit and be of good character. Review the application instructions to be sure all required materials are submitted.

Collection agencies’ licenses expire annually on June 30 and renewal applications must be received by the Board by May 15. Late renewals not submitted by July 15 incur a $125 late fee and operating after license expiration can incur fines of up to $500 per day.

Bonds for collection agencies

Arkansas collection agencies need surety bonds as part of the licensing process, and their bond amount is based on the number of collectors at the agency. The scale is as follows:

  • Five or fewer collectors�$10,000 surety bond
  • Six to 12 collectors�$20,000 surety bond
  • 13 or more collectors�$25,000 surety bond

A separate bond is required for each location where collections business is conducted. Failure to obtain or keep the bond current can result in loss of licensure. The bond ensures that Arkansas collection agencies follow the state’s Rules and Regulations for the industry and adheres to the provisions of the Arkansas Code Annotated (ACA). The ACA includes the Arkansas Fair Debt Collection Practices Act, which are laws preventing harassment and misrepresentation by collectors and setting guidelines for communication with consumers. Collection agencies are also expected to adhere to the federal Fair Debt Collection Practices Act.

Get started on the Arkansas collection agency licensing process by getting a surety bond today!

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