Pennsylvania Consumer Discount Company Bonds
In Pennsylvania, consumer discount companies must secure a surety bond to legally offer small consumer loans.
Bond Overview
- Purpose: To protect consumers from fraudulent or unethical lending practices
- Who Needs It: Businesses offering consumer discount loans in Pennsylvania
- Regulating Body: The Pennsylvania Department of State
- Required Amount: $5,000
- Premium Rate: $100
Keep scrolling to learn how the bonding process works.
What Is a Pennsylvania Consumer Discount Company Bond?
The Pennsylvania consumer discount company bond is required under the Consumer Discount Company Act. It ensures companies follow all applicable laws and protects consumers from financial harm if a company fails to meet its obligations.
You must submit this bond with the initial license application and renew it annually for the first three years of operating.
How Much Does a Consumer Discount Company Bond Cost?
Pennsylvania consumer discount company bonds cost a flat rate of $100 for a one-year term.
Click “Buy Now” below to purchase and receive your official bond in minutes.
How Does a Consumer Discount Company Bond Work?
By purchasing this type of surety bond, you enter a legally-binding contract between three parties:
- Principal: You, the consumer discount company owner applying for a license
- Obligee: The Pennsylvania Department of State requiring the bond
- Surety: The provider issuing the bond
If your business violates lending laws or fails to fulfill contractual obligations, harmed parties can file a claim against the bond.
The surety will cover valid claims up to the $5,000 bond amount, but the business must reimburse the surety.
How Do I Get a Pennsylvania Consumer Discount Company Bond?
SuretyBonds.com offers the fastest way to get a consumer discount bond in Pennsylvania. To get started, simply purchase your bond directly online.
We’ll deliver your official bond form in minutes via email. Sign and file the bond with the Pennsylvania Department of State.
How Do I Renew My Bond?
You must renew your consumer discount bond before the current one-year term ends. These bonds are continuous until canceled, so you just need to pay your renewal invoice to remain active for another year.
Check out our How to Renew Your Surety Bond page for more information.
What Are Requirements for Pennsylvania Consumer Discount Companies?
To comply with the Pennsylvania Consumer Discount Company Act, companies must:
- Obtain a valid business license from the Pennsylvania Department of Banking.
- Submit a $5,000 surety bond annually for the first three years.
- Abide by all rules related to loan amounts (up to $25,000), interest rates, service charges, and revolving loan accounts.
- Keep accurate records and fulfill all consumer contracts per state law.
Failure to meet these requirements may lead to penalties, bond claims, or loss of licensure.
