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§ 6242. Other costs included in amount financed

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 12 Pa.C.S.A. Commerce and TradeEffective: December 1, 2014

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 12 Pa.C.S.A. Commerce and Trade (Refs & Annos)
Part V. Consumer Credit (Refs & Annos)
Chapter 62. Motor Vehicle Sales Finance (Refs & Annos)
Subchapter D. Costs and Charges
Effective: December 1, 2014
12 Pa.C.S.A. § 6242
§ 6242. Other costs included in amount financed
Currentness
(a) Costs payable by buyer.--An installment seller of a motor vehicle under an installment sale contract may require the buyer to pay the following other costs incurred in the sale of a motor vehicle under the contract:
(1) Fees payable to the Commonwealth for filing a lien or encumbrance on the certificate of title to a motor vehicle sold under the contract or collateral security for the motor vehicle.
(2) Fees payable to a public official for filing, recording, satisfying or releasing the contract or instruments securing the buyer's obligation.
(3) Fees for notarization required in connection with the filing, recording, satisfying or releasing a mortgage, judgment lien or encumbrance.
(b) Costs for which buyer voluntarily contracts.--The installment seller of a motor vehicle under an installment sale contract may contract with the buyer to pay on behalf of the buyer the following other incidental costs relating to the sale of the motor vehicle, for which the buyer has voluntarily contracted:
(1) Fees payable to the Commonwealth for registration of the motor vehicle and issuance or transfer of registration plates.
(2) Fees payable to the Commonwealth for the buyer's driver's license.
(3) Costs of messenger service and other costs associated with the submission of documents to the Commonwealth or other governmental entity.
(4) Licensing costs under section 27.1 of the act of December 22, 1983 (P.L. 306, No. 84),1 known as the Board of Vehicles Act.
(c) Collection and credit for fees and costs.--With respect to the fees and costs under subsections (a) and (b), the installment seller may:
(1) contract for, collect or receive the fees and costs from the buyer independently of the contract; or
(2) extend credit to the buyer for the fees and costs and include them in the principal amount financed under the contract.
(d) Amount of fees and costs.--Unless otherwise permitted by the laws of this Commonwealth, the fees and costs under subsections (a) and (b) that are paid or payable by the buyer may not exceed the amount that the installment seller expends or intends to expend for them.
(e) Costs not disbursed.--Costs that are collected from a buyer or included in the buyer's obligation under an installment sale contract but that are not disbursed by the seller as contemplated shall be immediately refunded or credited to the buyer.
(f) Incidental charges.--
(1) Subject to paragraph (2), the installment seller of a motor vehicle under an installment sale contract may contract with the buyer to pay on behalf of the buyer other charges necessary or incidental to the sale of a motor vehicle and contracted for by the buyer, if the charges are not:
(i) in violation of section 6218(a)(12) (relating to revocation or suspension of license); or
(ii) restricted under this chapter or any other statute.
(2) Only the costs of necessary repairs disclosed at the time of the installment sale may be included in the contract. Necessary repairs arising after the execution of the contract may not be added to the original contract.
(3) This subsection does not otherwise authorize the mark-up of costs under subsection (a) or (b).

Credits

2013, Nov. 27, P.L. 1081, No. 98, § 4, effective in one year [Dec. 1, 2014].

Footnotes

1
63 P.S. § 818.27a.
12 Pa.C.S.A. § 6242, PA ST 12 Pa.C.S.A. § 6242
Current through Act 11 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
End of Document