In This Issue:

- Retail Vehicle Installment Sale Contracts Now Regulated under PA Consumer Credit Code’s Motor Vehicle Sales Finance Provisions

- Arbitration Clauses Referencing American Arbitration Association Require Wording Preapproval and Fees Paid

- Business Privilege Taxes Paid On Leases Refund/Appeal Filing Needed By March/April 2015

- Excerpt from Retail Vehicle Installment Sale Contracts Now Regulated under PA Consumer Credit Code’s Motor Vehicle Sales Finance Provisions:

In September 2014, dealers received a letter from the Department of Banking (“Banking”) regarding the repeal and replacement of the Motor Vehicle Sales Finance Act (“MVSFA”) with the Motor Vehicle Sales Finance provisions (“MVSF”) under the new Consumer Credit Code (“Credit Code”). This change was effective on December 1, 2014. Act 98 of 2013 created a combined Credit Code, which updated, modified, and consolidated governing retail vehicle installment sale contracts (“RISC”) under the MVSF. Another component of the Credit Code involves other goods and services that are sold and paid for over time (that are non-vehicle purchases), such as furniture, department store credit cards, etc. A link to the Act is available on Banking’s website at www.dobs.state.pa.us.

The new MVSF applies to indirect lending instances, where a RISC is entered into by the dealer, as the installment seller. Then, the dealer has the option of either assigning the RISC to a licensed sales finance company (manufacturer credit arm, or other financing source), or retaining the RISC on a buy-here/pay-here basis.