Florida to address potential motor vehicle dealer bond claim changes

motor vehicle dealer bond

First filed on December 19, 2012, Florida HB 55 was added to the Civil Justice Subcommittee agenda on January 17, 2013. If passed, HB 55 — which would go into effect on July 1, 2013 — would establish a requirement for consumers to file a demand letter when initiating a civil litigation action against a motor vehicle dealer.

In addition to establishing this requirement, Florida HB 55 would do the following:

  • include (when appropriate) the employees, agents, principles, sureties and insurers of the motor vehicle dealer in question as far as any civil litigation action is concerned
  • require that the letter be given to the dealer at least 30 days before initiating the litigation
  • permit the auto dealer to pay the claim following receipt of the demand letter

Motor vehicle dealers in Florida are required to post an motor vehicle dealer bond before they can open for business to ensure that they will adhere to the state’s auto industry regulations. In the event that an auto dealer breaches the terms of the surety contract, a consumer and/or the state can file a claim against the surety bond. If passed, HB 55 would require the consumer to submit a demand letter to the auto dealer before filing a formal claim with the state.

Be sure to check back with the Surety Bond Insider for updates about this bill.

If you need an auto dealer surety bond in Florida or any other state, contact SuretyBonds.com online or by phone at 1 (800) 308-4358 to speak with an expert surety specialist. Your surety specialist will provide you with a free, no-obligation price quote after collecting the following information:

  • state in which the business resides
  • amount for which you need the bond
  • the personal credit scores and financial histories of all owners

If you choose to proceed with the bonding process, your bond will be issued as soon as payment is received. You’ll receive a copy of your bond immediately via email, and your original bond form will be mailed according to your shipping preferences.

We look forward to assisting you with all of your bonding needs.

Update: HB 55 was passed by the Florida State Legislature.

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