Motor Vehicle Sales Finance Company (MVSF) Exam Guidance and FAQs

 A prospective dealer must follow the instructions contained in Pub 459 (PDF), "Requirements on Becoming a Dealer" in order to receive their Dealer Identification Number and dealer plates.

The Dealer Identification Number (DIN) is issued by Pennsylvania Department of Transportation (PennDOT) after they have completed an inspection of the dealership and you have received the Vehicle Dealer number (VD number) from the Department of State. 

PennDOT issues your Financial Institution Number.  The Financial Institution Number (FIN) is a unique ID assigned by PennDOT and used on the MV-38L (PDF). This is not the same as an FEIN number assigned by the IRS. More information can be found on PennDOT’s website.

Auto dealers can enroll in PennDOT's Electronic Lien and Title (PDF) program.  More information can be found on PennDOT’s website.

Yes, background check requests must be done using the instructions provided in the application.  All criminal history requests must be dated within 30 days of submission of the application to the Department Banking and Securities.

A new task, Renewal Application, will be created in The DoBS Portal no later than July 15th of each year and the renewal application must be submitted through The Portal prior to September 30th.

An automated email notice referring to the new task will go to your licensing contact. Please ensure that all of your contacts are always updated and add ra-bndobsportal@pa.gov to your email's safe sender list.

Refer to the DoBS Portal User Guide. 

Contact licensing with any further questions.

No.  Approved licenses are available for download and printing in The Portal.

If your EIN number changes, you must re-apply for a new license in The Portal. 

If your EIN number remains the same, you must edit the entity name in The Portal which includes attaching proof in the form of a letter you obtained from the Internal Revenue Service showing the name of the new company and the EIN number as well as Department of State registration.

The examiner will address the following topics, at a minimum, when conducting an examination to determine whether a licensee is compliant with state and applicable federal laws. The department examiners will review the following:

• Licensing records
• General Business Records
• Contents of Installment Sale Contracts and Optional product Disclosures
• Third Party Fees and Documentary Fees
• Prohibited Provisions of Contract
• The Assignment  of Installment Sale Contracts
• Insurance
• Other Costs Included in Amount Financed
• Calculation of Finance Charges
• Refinancing of Installment Sale Contracts
• Default Charges
• Refunds for Prepayment of Contract
• Repossessions
• Reinstatement of Contract after Repossession
• Redemption and Termination of Contracts after Repossession
• Sale of Motor Vehicle after Repossession
• Deficiency Judgments
• Statement of Account to Buyer
• Servicing Records, including payment receipts,  for Buy-Here-Pay-Here contracts
• Timely Release of Liens
• Prohibited Charges
• Buyer's Waiver of Statutory Protection
• Compliance with applicable federal laws (Examples: Gramm-Leach Bliley Act, the Federal Trade Commission's Safeguards Rule, the Fair and Accurate Credit Transaction Act, the Fair Credit Reporting Act, and the Equal Credit Opportunity Act)

The department may conduct an examination at its discretion. On average, the department examines installment sellers every three to five years. However, the department may choose to examine a licensee at any time, including in response to specific consumer inquiries/complaints.

Examinations can be scheduled or unscheduled.

• Scheduled:  While not required by statute, an examiner will attempt to call in advance of an examination to notify the licensee of the scheduled examination date.
• Unscheduled: There are instances where, the department will conduct an examination during normal business hours unannounced. In this scenario, the examiner will attempt to not interfere with the licensee's normal business practices.

A task will be generated in the portal requiring the completion of a management questionnaire.  A portion of the questionnaire requires the names, addresses, and license numbers for those to whom contracts have been assigned/transferred and another portion requires the volume, number and dollar value, of contracts written in prior calendar years.

In addition, the following records may be requested:

• Written policies and procedures established by the licensee in order to comply with the state laws,
• Written policies and procedures established by the licensee in order to comply with federal laws, such as the Gramm-Leach Bliley Act, the Federal Trade Commission's Safeguards Rule, the Fair and Accurate Credit Transaction Act, the Fair Credit Reporting Act, the Office of Foreign Assets Control and the Equal Credit Opportunity Act,
• Copies of advertising materials
• Log listing all third-party installment sales contracts written during the prior two years or access to the contracts themselves, and
• Log of credit denials which will be reviewed for any violations of the Equal Credit Opportunity Act

The examiner will select from the licensee's log, at least (20) installment sale contracts along with all supporting paperwork.

• The licensee should provide the entire contents of the deal jacket to the examiner for review.
• The examiner may request additional contracts depending on the circumstances of the examination and the size and complexity of the licensee.
• Additional contracts may be requested in order to ensure compliance or to determine the scope of a violation.
• If the licensee maintains digital files, the examiner must be granted access to view or provided with the files in a viewable format.

Any licensee which operates as a buy-pay-here will also be required to provide:

• Full servicing records for every contract to include detailed records of payments, fees, calculation of interest, etc.
• All additional documentation and notices, such as notices of repossession, when applicable.

The examination may occur on-site or off-site at the department's discretion.

On-Site Examination

During an onsite examination, in addition to all records requested (noted above), upon arrival, the examiner will need:

• A secure (lockable) and adequate workspace, including an electrical outlet and enough room to spread files, records, and documentation,
• Private meeting space where the examiner can meet with and discuss the operations of the licensee.

Off-Site Examination

During an off-site examination, all records requested (noted above) will be uploaded in the portal through a task specific to your examination.

In all examinations, scheduled or unscheduled, on-site or off-site, it is expected that there will be effective communication including but not limited to the following:

• The examiner and licensee will have an introductory meeting in order to gain an understanding of the licensee's operations. 
• There may be follow-up questions related to a specific contract or requests for an explanation of exactly what occurred in a specific deal.
• In the event of a violation, there will be a clear explanation of the exact violation for management to recognize and understand how it occurred. 
• It is the examiner's goal to determine the necessary corrective action to remedy the violation during the examination timeframe.  This may include the licensee issuing refunds in the event of an overcharge, the licensee working with their software vendors to update programming of contracts, the examiner pointing the licensee to the necessary statutes or regulations in order for the licensee to create a form or write a policy, etc.
• The examiner and licensee will have an exit meeting to summarize and review all findings of the examination.
• The licensee will receive and sign an Examination Summary Report which summarizes all findings, but also provides any corrective actions for the institution to take that was unable to be completed during the course of the examination and the deadline for the documentation to be provided to the department for review.

§ 6203(d) of the Consumer Credit Code authorizes the department to assess the licensee for the expense incurred in connection with the examination. 

• The cost of the examination is calculated at $67.73 per hour, with a full examiner day totaling $508.
• There are no additional fees related to travel or expenses.
• The Invoice will be prepared and provided as a task in the Portal.
• Failure to paying the invoice by the due date will result in:
  • Late fees pursuant to 71 P.S. § 733-204 of the Department of Banking and Securities Code.
    
  • Potential administrative action for non-compliance.