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2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 62 - Motor Vehicle Sales Finance › Section 6232 - Release of liens

§ 6232. Release of liens.
(a) Duty of holder.--
Upon payment in full of the time balance and other amounts lawfully due under an installment sale contract, a holder shall perform the following:
(1) Upon request, return to the buyer all instruments in the form maintained by the holder, except those filed or recorded with a public official and retained in the files of the official, which:
(i) evidence the buyer's indebtedness or constitute security under the contract; and
(ii) were signed by the buyer or the buyer's surety or guarantor, in conjunction with the contract.
(2) Specify on the instruments under paragraph (1) that the buyer's obligation has been paid in full.
(3) Release all security interests in the motor vehicle or collateral security for the obligation of the buyer under the contract.
(4) Deliver to the buyer any assignments and documents of title as may be necessary to vest the buyer with complete evidence of title.
(b) Delivery of certificate of title.--
The certificate of title for the motor vehicle shall be delivered to the buyer within ten days of the date of tender of payment in full by mail or other arrangements made between the buyer and holder.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 62 - Motor Vehicle Sales Finance › Section 6233 - Prohibited charges

§ 6233. Prohibited charges.
(a) General rule.--
Except as provided in subsections (b) and (c), a licensee may directly or indirectly charge, contract for, collect or receive from the buyer, in connection with the retail sale of a motor vehicle under an installment sale contract, insurance charges, other charges necessary or incidental to the sale of the motor vehicle, finance charges, refinance charges, late charges, recording and satisfaction fees, court costs, attorney fees and costs of retaking, repairing and storing a repossessed motor vehicle, which are disclosed as required by section 6222(5) (relating to contents).
(b) Exception.--
A licensee may not directly or indirectly charge, contract for, collect or receive from the buyer, in connection with the retail sale of a motor vehicle under an installment sale contract, any further or other amount for costs, charges, examination, appraisal, service, brokerage, commission, expense, interest, discount, fees, fines, penalties or other thing of value in excess of the amounts permitted under subsection (a) or (c).
(c) Manufactured homes.--
An installment seller of a manufactured home may charge appraisal fees, brokerage fees and commissions if they represent actual charges and are properly disclosed to the buyer.
(d) Charges if contract not consummated.--
(1) Subject to paragraph (2), a licensee may not collect a charge in connection with a contemplated sale of a motor vehicle under an installment sale contract if the contract is not consummated.
(2) Paragraph (1) does not affect the legal status of a deposit paid by a prospective buyer to a seller as a binder on the contemplated purchase of a motor vehicle.
(e) Unenforceable provision.--
If an installment sale contract contains a provision that authorizes a prohibited charge, the provision is unenforceable.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 62 - Motor Vehicle Sales Finance › Section 6234 - Waiver of statutory protection prohibited

§ 6234. Waiver of statutory protection prohibited.
(a) General rule.--
A buyer may not validly waive through an action, agreement or statement any provision of this chapter intended to protect a buyer of a motor vehicle.
(b) Choice of law.--
A buyer's waiver of the provisions of this chapter, including any purported waiver effected by a contractual choice of the law of another jurisdiction contained in an installment sale contract, shall be deemed contrary to public policy and is void and unenforceable.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 62 - Motor Vehicle Sales Finance › Section 6235 - Effect of license expiration, surrender and revocation on contracts

§ 6235. Effect of license expiration, surrender and revocation on contracts.
(a) Effect.--
The expiration, surrender or revocation of a license issued under this chapter to an installment seller or sales finance company does not impair or affect the obligation under an installment sale contract entered into lawfully or lawfully acquired by the licensee prior to the effective date of the expiration, surrender or revocation of the license.
(b) Charges by holder prohibited.--
A holder of an installment sale contract forfeits the right to charge, contract for, receive or collect refinance charges authorized by this chapter for renewal of the contract, if the holder's license has expired, was surrendered or was revoked prior to the date of the renewal.
(c) Sale, transfer and assignment of contracts.--
A licensee whose license has expired, was surrendered or was revoked may sell, transfer or assign contracts entered into or acquired prior to the expiration, surrender or revocation to a licensed sales finance company, which may renew the contracts in accordance with the provisions of this chapter.
(d) Prohibitions regarding contracts.--
A licensee whose license has expired, was surrendered or was revoked may not:
(1) enter into new contracts for the retail sale of motor vehicles under installment sale contracts; or
(2) discount, purchase or otherwise acquire the new contracts.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 62 - Motor Vehicle Sales Finance › Section 6236 - Enforcement

§ 6236. Enforcement.
(a) When obligation unenforceable.--
An obligation of the buyer of a motor vehicle under an installment sale contract that was consummated in this Commonwealth is not enforceable in this Commonwealth if:
(1) the installment seller was not licensed under this chapter when the seller entered into the contract; or
(2) the holder was not licensed under this chapter when the holder acquired the contract.
(b) Cancellation of contract; release of liens.--
Upon payment or tender of payment to the holder of the principal amount financed under the contract described in subsection (a), less payments on account of the obligation exclusive of down payment which had been made previously, the buyer under the contract is entitled to:
(1) cancellation of the contract; and
(2) release of all liens against:
(i) the motor vehicle sold under the contract; and
(ii) collateral security owned by the buyer or the buyer's surety or guarantor.
(c) Applicability.--
This section shall not be construed to prevent the enforcement in this Commonwealth of an obligation arising from the sale of a motor vehicle made outside this Commonwealth under an installment sale contract entered into or executed by the buyer outside this Commonwealth, whether or not the buyer was a resident of this Commonwealth at the time the buyer entered into the contract.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 62 - Motor Vehicle Sales Finance › Section 6245 - Late charges

§ 6245. Late charges.
(a) General rule.--
A late charge may be collected on the following:
(1) An installment payment that is not paid on or before the due date of the payment.
(2) A contract subject to this chapter, regardless of the classification of vehicle under section 6243 (relating to finance charges) or the method by which the finance charge is computed.
(b) Rate and computation.--
(1) Under a contract for the sale of a motor vehicle other than a heavy commercial motor vehicle, a late charge may not, for any payment not made within ten days of its scheduled due date, exceed the rate of 2% on the amount of the payment in arrears.
(2) Under a contract for the sale of a heavy commercial motor vehicle, a late charge may not, for any payment not made within ten days of its scheduled due date, exceed the rate of 4% of the amount of the payment in arrears.
(3) The late charges under paragraphs (1) and (2) may be collected only once on each payment in arrears.
(c) Collection.--
(1) Late charges may be:
(i) collected when earned during the term of a contract for the sale of a motor vehicle; or
(ii) accumulated and collected at final maturity or at the time of final payment under a contract for the sale of a motor vehicle.
(2) A late charge may not be collected on a payment in default because of an acceleration provision in the contract.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 62 - Motor Vehicle Sales Finance › Section 6246 - Refund for prepayment of contract

§ 6246. Refund for prepayment of contract.
(a) Right to prepay unpaid time balance.--
Notwithstanding the provisions of an installment sale contract, a buyer may prepay at any time all or part of the unpaid time balance under the contract.
(b) Rebate generally.--
If the entire time balance is liquidated prior to maturity by prepayment, refinancing or termination by surrender or repossession and resale of the motor vehicle, a holder of the contract for the sale of the motor vehicle shall immediately rebate to the buyer any unearned portion of the finance charge. The rebate may be made in cash or credited to the amount due on the obligation of the buyer.
(c) Rebate amount.--
(1) Subject to paragraph (2), the proportion of the unearned finance charge that shall be rebated to the buyer to the total finance charge shall be at least the proportion of the sum of the periodic time balances after the date of prepayment to the sum of all the periodic time balances under the schedule of payments in the original contract.
(2) The holder is not required to rebate:
(i) a portion of the unearned finance charge that results in a net minimum finance charge on the contract of less than $10; or
(ii) an unearned finance charge if the computed amount due is less than $1.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 62 - Motor Vehicle Sales Finance › Section 6251 - Repossession authorized

§ 6251. Repossession authorized.
(a) When repossession may occur.--
An installment seller or a holder, who has lawfully acquired a motor vehicle installment sale contract, may retake possession of the motor vehicle if the buyer:
(1) is in default in the payment of an amount due under the contract; or
(2) has committed another breach of contract, which is by the contract specifically made a ground for retaking the motor vehicle.
(b) Legal process.--
(1) Unless the motor vehicle can be retaken without breach of the peace, it shall be retaken by legal process.
(2) This subchapter shall not be construed to authorize a violation of the criminal laws of this Commonwealth.
(c) Limitation.--
Except as provided in this chapter, in a transaction involving a commercial purpose, the provisions of this chapter regarding repossession of a motor vehicle are limited by the provisions of 13 Pa.C.S. Div. 9 (relating to secured transactions).
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 62 - Motor Vehicle Sales Finance › Section 6252 - Who may repossess

§ 6252. Who may repossess.
(a) With legal process.--
Repossession of a motor vehicle when effected by legal process shall be made only by a duly constituted public official.
(b) Without legal process.--
Repossession of a motor vehicle when effected otherwise than by legal process under subsection (a) shall be made only by the following:
(1) The holder.
(2) An official or full-time employee of the holder.
(3) A collector-repossessor licensed under this chapter.
(4) The person who originally sold the motor vehicle to the buyer under the installment sale contract.
(5) A licensed seller or sales finance company that is not regularly engaged in the business of repossessing motor vehicles but occasionally does so as an accommodation for another seller or sales finance company.
(6) An official or full-time employee of a licensed seller or sales finance company under paragraph (5).
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 62 - Motor Vehicle Sales Finance › Section 6253 - Legal proceedings

§ 6253. Legal proceedings.
(a) When to commence action.--
If repossession and sale of a motor vehicle subject to an installment sale contract or its collateral security is effected by legal process, the holder may commence legal proceedings immediately upon the buyer's default or breach of the contract.
(b) Rights and duties of buyer.--
In a proceeding under subsection (a), the buyer shall receive notice, have the rights and be liable for the costs of suit and reasonable attorney fees as provided by the laws of this Commonwealth governing legal proceedings.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 62 - Motor Vehicle Sales Finance › Section 6254 - Notice of repossession

§ 6254. Notice of repossession.
(a) General rule.--
If repossession of a motor vehicle subject to an installment sale contract is effected other than by legal process, the holder shall immediately furnish the buyer with a written notice of repossession.
(b) Delivery.--
The notice of repossession shall be delivered in person or sent by registered or certified mail to the last known address of the buyer.
(c) Contents.--
The notice of repossession shall contain the following:
(1) The buyer's right to reinstate the contract, if the holder extends the privilege of reinstatement and redemption of the motor vehicle.
(2) An itemized statement of the total amount required to redeem the motor vehicle by reinstatement or payment of the contract in full.
(3) Notice to the buyer of the holder's intent to resell the motor vehicle at the expiration of 15 days from the date of mailing the notice.
(4) The place where the motor vehicle is stored.
(5) The name and address of the person to whom the buyer shall make payment or on whom the buyer may serve notice.
(6) A statement that any personal property left in the repossessed vehicle will be held for 30 days from the date of the mailing of the notice.
(7) The name and address of the person that the buyer may contact to receive a full statement of account as provided by section 6230 (relating to statement of account to buyer).
Cross References.
Section 6254 is referred to in sections 6255, 6259 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 62 - Motor Vehicle Sales Finance › Section 6255 - Personal property in repossessed motor vehicle

§ 6255. Personal property in repossessed motor vehicle.
A buyer may reclaim personal property left in the repossessed motor vehicle within 30 days of the mailing of the notice under section 6254 (relating to notice of repossession). If personal property is left in the motor vehicle after the 30-day time period, the holder may dispose of the personal property in any manner that it chooses.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 62 - Motor Vehicle Sales Finance › Section 6256 - Buyer's liability for costs

§ 6256. Buyer's liability for costs.
If repossession of a motor vehicle subject to an installment sale contract is effected other than by legal process, the buyer shall be liable for costs incurred by the holder in retaking, storing and repairing the motor vehicle only if:
(1) The default exceeds 15 days at the time of repossession.
(2) The costs are actual, necessary and reasonable, excluding repossession costs for services by an individual who is a regular full-time employee of the holder.
(3) The costs are supported by receipts or other satisfactory evidence of payment.
(4) The records of the holder show detailed information as to the nature and amount of each cost, the date of payment and the recipient of the payment.
Cross References.
Section 6256 is referred to in sections 6203, 6258, 6259, 6261 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 62 - Motor Vehicle Sales Finance › Section 6257 - Notice to police

§ 6257. Notice to police.
The repossessor of a motor vehicle shall give notice within 24 hours after the repossession to:
(1) the local municipal police department having jurisdiction of the area where the motor vehicle was located at the time of repossession; or
(2) the Pennsylvania State Police, if no municipal police jurisdiction exists.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 62 - Motor Vehicle Sales Finance › Section 6258 - Reinstatement of contract after repossession

§ 6258. Reinstatement of contract after repossession.
(a) When reinstatement may occur.--
If a motor vehicle subject to an installment sale contract has been repossessed by legal process or otherwise because of default or other breach of contract, the holder may reinstate the contract and return the motor vehicle to the buyer if the buyer:
(1) pays all past-due installments; or
(2) makes mutually satisfactory arrangements with the holder regarding the following:
(i) Accrued late charges.
(ii) Costs of suit under the contract and authorized by this chapter in repossession by legal process.
(iii) The costs of retaking, repairing and storing under section 6256 (relating to buyer's liability for costs), if default at the time of repossession exceeds 15 days.
(b) Refinancing.--
If an installment sale contract for a motor vehicle is reinstated after repossession, the holder may contemporaneously or subsequently enter into a contract with the buyer for refinancing the obligation as provided in this chapter.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 62 - Motor Vehicle Sales Finance › Section 6259 - Redemption and termination of contract after repossession

§ 6259. Redemption and termination of contract after repossession.
(a) Retaining motor vehicle.--
Unless the right of redemption is waived in a nonconsumer transaction under 13 Pa.C.S. § 9624(c) (relating to waiver), if repossession of a motor vehicle subject to an installment sale contract is effected within or outside this Commonwealth other than by legal process, the holder shall retain the repossessed motor vehicle for a period of 15 days after the mailing of the notice of repossession under section 6254 (relating to notice of repossession).
(b) Redemption.--
During the 15-day period after the mailing of the notice of repossession, the buyer may redeem the motor vehicle and terminate the installment sale contract by payment or tender of payment to the holder of the following amounts:
(1) If default at the time of repossession is 15 days or less, the sum of the following, less rebate of any unearned finance charge and excluding the costs of retaking, repairing and storing under section 6256 (relating to buyer's liability for costs):
(i) The unpaid time balance.
(ii) Accrued late charges authorized by this chapter.
(iii) Any other amount lawfully due under the contract.
(2) If default at the time of repossession exceeds 15 days, the sum of the following, less rebate of any unearned finance charge:
(i) The unpaid time balance.
(ii) Accrued late charges authorized by this chapter.
(iii) The costs of retaking, repairing and storing under section 6256.
(iv) Any other amount lawfully due under the contract.
(c) Return of motor vehicle and collateral.--
(1) If the buyer redeems the motor vehicle and terminates the installment sale contract by payment or tender as provided in subsection (b), the holder shall return the motor vehicle and other collateral in a manner consistent with 13 Pa.C.S. § 9623 (relating to right to redeem collateral).
(2) Property is deemed to be returned in a manner in compliance with this chapter and 13 Pa.C.S. § 9623 by delivery to one of the following sites designated by the buyer:
(i) The county in this Commonwealth or within a comparable governmental unit outside this Commonwealth where repossession occurred.
(ii) The county in this Commonwealth where the buyer resides.
(iii) The county in this Commonwealth where the vehicle was purchased under the contract.
(3) Upon receipt of the funds necessary to redeem the motor vehicle as provided in subsection (b), the holder shall return the repossessed motor vehicle as soon as is reasonably possible, but not later than ten business days from the receipt of the funds.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 62 - Motor Vehicle Sales Finance › Section 6260 - Sale of motor vehicle after repossession

§ 6260. Sale of motor vehicle after repossession.
(a) Forfeiture.--
If the repossessed motor vehicle subject to an installment sale contract is not redeemed by the buyer either by termination or reinstatement of the contract within the 15-day notice of redemption period, the buyer shall forfeit all claim to the motor vehicle and collateral security.
(b) Deficiency.--
If the buyer does not redeem the repossessed motor vehicle within the 15-day notice of redemption period, the installment seller or holder may not bring an action or proceeding against the buyer for a deficiency under section 6261 (relating to deficiency judgment) unless there has been a public or private sale of the repossessed motor vehicle and collateral security.
(c) Motor vehicle title.--
At the sale of a repossessed motor vehicle to a purchaser, the installment seller or holder shall provide to the purchaser the title to the vehicle and all necessary documents to effect the transfer of the motor vehicle.
Cross References.
Section 6260 is referred to in section 6261 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 62 - Motor Vehicle Sales Finance › Section 6261 - Deficiency judgment

§ 6261. Deficiency judgment.
(a) General rule.--
If the proceeds of a resale under section 6260 (relating to sale of motor vehicle after repossession) are not sufficient to defray the expenses regarding the repossessed motor vehicle, including the costs under section 6256 (relating to buyer's liability for costs), the net balance due on the installment sale contract and the amount of accrued late charges authorized by this chapter, the installment seller or holder may recover the deficiency from the buyer or from any person who has succeeded to the obligations of the buyer.
(b) Reasonable value.--
(1) The reasonable value of the motor vehicle at the time of resale shall be determined in an action or a proceeding brought by:
(i) the installment seller or holder to recover the deficiency; or
(ii) the buyer.
(2) The resale price of the motor vehicle is prima facie, but not conclusive, evidence of the reasonable value of the motor vehicle.
(3) The determined reasonable value or the resale price of the motor vehicle, whichever is higher, shall be credited against the buyer's indebtedness.
(c) Reasonable costs.--
In an action or a proceeding for a deficiency, the buyer may have the reasonableness of the costs incurred determined under section 6256.
(d) Deficiency notice.--
Within 30 days after the sale of a repossessed motor vehicle, the installment seller or holder shall deliver in person or send by registered or certified mail to the last known address of the buyer a deficiency notice containing the following:
(1) The sale price of the repossessed motor vehicle.
(2) The itemized costs associated with the repossession and sale of the repossessed motor vehicle.
(3) The amount of the deficiency owed by the buyer.
(e) Nonapplicability.--
Subsections (b)(1)(ii) and (d) shall not apply to a deficiency on a resale that was held prior to the effective date of this section.
Cross References.
Section 6261 is referred to in section 6260 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 62 - Motor Vehicle Sales Finance › Section 6271 - Operating without license

§ 6271. Operating without license.
(a) Prohibition; penalty.--
An entity or individual under subsection (b) engaging in business in this Commonwealth as an installment seller, sales finance company or collector-repossessor without having obtained a license under this chapter commits a violation of this chapter and shall, upon conviction, be sentenced at the discretion of the court to either or both of the following:
(1) Pay a fine of not less than $2,000 nor more than $10,000.
(2) Imprisonment for not more than three years.
(b) Applicability.--
Subsection (a) applies to the following:
(1) A person, partnership, association, business corporation, financial institution, nonprofit corporation, common law trust, joint stock company or any other group of individuals, however organized.
(2) An owner, partner, member, officer, director, trustee, employee, agent, broker or representative of an entity under paragraph (1).
Cross References.
Section 6271 is referred to in section 6217 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 62 - Motor Vehicle Sales Finance › Section 6272 - Violation of chapter provisions

§ 6272. Violation of chapter provisions.
A licensee or an owner, partner, member, officer, director, trustee, employee, agent, broker or representative of the licensee who violates a provision of this chapter or directs a violation of this chapter commits a violation of this chapter and shall, upon conviction, be sentenced at the discretion of the court to the following:
(1) Pay a fine of not more than $2,000 for the first offense.
(2) For each subsequent offense, to either or both of the following:
(i) Pay a fine of not more than $2,000.
(ii) Imprisonment for not more than one year.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 62 - Motor Vehicle Sales Finance › Section 6273 - Use of unlicensed collector-repossessor

§ 6273. Use of unlicensed collector-repossessor.
A licensed seller or sales finance company acting as holder of a motor vehicle installment sale contract who hires, authorizes or permits an unlicensed collector-repossessor, as defined in this chapter, to collect payments on the contract or repossess a motor vehicle sold under the contract within this Commonwealth commits a violation of this chapter and shall, upon conviction, be sentenced at the discretion of the court to the following:
(1) Pay a fine of not more than $2,000 for the first offense.
(2) For each subsequent offense, to either or both of the following:
(i) Pay a fine of not more than $2,000.
(ii) Imprisonment for not more than one year.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 62 - Motor Vehicle Sales Finance › Section 6274 - Civil penalty by department

§ 6274. Civil penalty by department.
A person required to be licensed under this chapter that violates this chapter, directs a violation of this chapter or engages in an activity for which a license could be suspended or revoked under section 6218 (relating to revocation or suspension of license) shall be subject to a civil penalty levied by the department of not more than $2,000 for each offense.
Cross References.
Section 6274 is referred to in section 6205 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 62 - Motor Vehicle Sales Finance › Section 6275 - Liability of sales finance company

§ 6275. Liability of sales finance company.
(a) Exemption from liability.--
A sales finance company licensed under this chapter and engaged in the purchase, sale, assignment, securitization or servicing of installment sale contracts may not be held liable under this chapter for either of the following:
(1) Excessive markups of charges by installment sellers.
(2) A failure to disclose under section 6221(e) (relating to requirements).
(b) Federal status preserved.--
This section does not affect the liability of a sales finance company that is a holder under the Federal Trade Commission Act (38 Stat. 717, 15 U.S.C. § 41 et seq.).
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 63 - Goods and Services Installment Sales › Extra - Chapter Notes

Enactment.
Chapter 63 was added November 27, 2013, P.L.1081, No.98, effective in one year.
Cross References.
Chapter 63 is referred to in section 6911 of Title 42 (Judiciary and Judicial Procedure).
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 63 - Goods and Services Installment Sales › Section 6303 - Waiver

§ 6303. Waiver.
A buyer's waiver of the provisions of this chapter, including any purported waiver effected by a contractual choice of the law of another jurisdiction contained in a closed-end credit agreement or an open-end credit agreement, shall be deemed contrary to public policy and is void and unenforceable.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 63 - Goods and Services Installment Sales › Section 6304 - Applicability

§ 6304. Applicability.
(a) Agreements.--
A closed-end credit agreement and an open-end credit agreement are deemed to be made in this Commonwealth and subject to the provisions of this chapter if either of the following occurs:
(1) The seller offers or agrees in this Commonwealth to sell to a resident buyer of this Commonwealth.
(2) A resident buyer of this Commonwealth accepts or makes the offer in this Commonwealth to buy, regardless of the situs specified in the agreement.
(b) Offer to sell.--
A verbal or written solicitation or communication to sell that originates outside this Commonwealth and is forwarded to and received in this Commonwealth by a resident buyer of this Commonwealth shall be deemed an offer or agreement to sell in this Commonwealth and subject to the provisions of this chapter.
(c) Offer to buy.--
A verbal or written solicitation or communication to buy that originates within this Commonwealth from a resident buyer of this Commonwealth and is forwarded to and received by a seller outside this Commonwealth shall be deemed an acceptance or offer to buy in this Commonwealth and subject to the provisions of this chapter.
(d) Subsequent goods and services.--
Goods or services that subsequently result from a solicitation or communication under subsection (b) or (c) are subject to the provisions of this chapter.
(e) Exclusivity.--
Notwithstanding any provision of law to the contrary, this chapter shall exclusively govern and regulate the terms and conditions of all extensions of credit, except cash advances, for the purchase of goods and services within this Commonwealth.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 63 - Goods and Services Installment Sales › Section 6305 - Prohibited activities and provisions

§ 6305. Prohibited activities and provisions.
(a) Activities.--
In attempting to collect a buyer's obligation, a seller or holder shall comply with the act of March 28, 2000 (P.L.23, No.7), known as the Fair Credit Extension Uniformity Act.
(b) Provisions.--
A closed-end credit agreement, an open-end credit agreement or other agreement may not contain a provision by which any of the following may occur:
(1) Except as provided in section 6306 (relating to assignment), the buyer agrees not to assert a claim or defense arising from the sale against a seller or an assignee.
(2) In the absence of the buyer's default in the performance of an obligation, the holder may accelerate the maturity of all or part of the amount owed.
(3) The seller or holder of the agreement, or a person acting on behalf of the seller or holder, is given authority to enter the buyer's premises unlawfully or commit a breach of the peace in the repossession of goods.
(4) The buyer waives a right of action against the seller or holder of the agreement, or a person acting on behalf of the seller or holder, for an illegal act committed in the collection of payments under the agreement or the repossession of goods.
(5) The buyer executes a power of attorney appointing the seller or holder of the agreement, or a person acting on behalf of the seller or holder, as the buyer's agent in the collection of payments under the agreement or the repossession of goods.
(6) The buyer relieves the seller from liability for legal remedies that the buyer may have against the seller under the agreement or a separate instrument executed in connection with the agreement.
(7) The buyer agrees to the payment of a charge by reason of the exercise of the right to rescind or avoid the agreement.
(8) The seller or holder of the agreement is given the right to commence an action on the agreement under the provisions of this chapter in a county other than the county where any of the following occurred:
(i) The buyer signed the agreement.
(ii) The buyer resides at the commencement of the action.
(iii) The buyer resided when the agreement was entered into.
(iv) The goods purchased under the agreement have been so affixed to real property as to become a part of the real property.
(9) An assignment of wages is given.
(10) The seller or holder of the agreement, or a person acting on behalf of the seller or holder, is given authority to execute upon a judgment by confession.
(11) The seller or holder of the agreement, or a person acting on behalf of the seller or holder, is given authority to take a mortgage or other security against residential real estate of the buyer or another obligee to the agreement.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 63 - Goods and Services Installment Sales › Section 6306 - Assignment

§ 6306. Assignment.
Except as provided in section 6352 (relating to noncompliance; costs and charges), a right of action or defense arising from a sale that a buyer has against a seller is not eliminated by assignment of the buyer's closed-end credit agreement or open-end credit agreement to a third party, regardless of whether the third party acquires the agreement in good faith and for value.
Cross References.
Section 6306 is referred to in section 6305 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 63 - Goods and Services Installment Sales › Section 6307 - Venue

§ 6307. Venue.
An action on a closed-end credit agreement or an open-end credit agreement shall be commenced in a county where any of the following occurred:
(1) The buyer signed the agreement.
(2) The buyer resides at the commencement of the action.
(3) The buyer resided when the agreement was entered into.
(4) The goods purchased under the agreement have been so affixed to real property as to become a part of the real property.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 63 - Goods and Services Installment Sales › Section 6308 - Attorney fees and costs

§ 6308. Attorney fees and costs.
(a) Award.--
Reasonable attorney fees and costs shall be awarded to the prevailing party in an action on a closed-end credit agreement or an open-end credit agreement, regardless of whether the action is instituted by the seller, holder or buyer.
(b) Agreement.--
A seller may provide for the payment of attorney fees and costs under subsection (a) in an agreement signed by the buyer, if a copy of the agreement is given or furnished to the buyer.
(c) Definition.--
For purposes of this section, a defendant is deemed to be a prevailing party if both of the following occur:
(1) The defendant:
(i) Alleges in its answer that it tendered to the plaintiff the full amount to which the plaintiff was entitled.
(ii) Deposits the amount with the court.
(2) The allegation in paragraph (1)(i) is found to be true.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 63 - Goods and Services Installment Sales › Section 6309 - Repossession; acceleration; right to cure

§ 6309. Repossession; acceleration; right to cure.
(a) Rights of holder.--
If a buyer defaults in the performance of an obligation under a closed-end credit agreement or an open-end credit agreement, the holder, pursuant to the rights granted under the agreement:
(1) May proceed to recover judgment for the balance due or retake the goods.
(2) Shall comply with and be limited by the requirements of 13 Pa.C.S. (relating to commercial code).
(b) Prohibited actions.--
Unless the buyer is in default and the seller or holder provides the buyer with the notice under subsection (c), a seller or holder may not:
(1) accelerate the maturity of the agreement; or
(2) commence legal action or repossess without legal process.
(c) Notice.--
(1) Notice under this section shall be:
(i) sent by certified mail to the buyer's last known address; or
(ii) delivered personally to the residence of the buyer.
(2) The notice shall inform the buyer of all the following:
(i) The right to cure the default within 21 days of the date of receipt of the notice upon the payment of all the following:
(A) The amount in default.
(B) Late fees under section 6343 (relating to late fees).
(C) Extension and deferment charges under section 6347 (relating to extension and deferment).
(D) Actual repossession costs.
(ii) The name, address and telephone number of the seller or holder.
(iii) The total amount due, which is the sum of the items in subparagraph (i).
(iv) The exact date by which the amount due must be paid.
(v) The name, address and telephone number of the person to whom payment must be made.
(vi) Other performance necessary to cure a default arising from other than nonpayment of the obligation.
(3) The seller or holder is not required to provide the notice under this subsection more than once in any 12-month period.
(d) Rights of buyer; curing default.--
(1) The buyer shall have the rights specified in the notice under subsection (c).
(2) The act of curing a default restores to the buyer the rights under the agreement as though no default had occurred.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 63 - Goods and Services Installment Sales › Section 6312 - Discharge of obligation

§ 6312. Discharge of obligation.
Unless a buyer has notice of the actual or intended assignment of a closed-end credit agreement or an open-end credit agreement, payment made by the buyer to the last known holder of the agreement shall, to the extent of the payment, discharge the buyer's obligation.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 63 - Goods and Services Installment Sales › Section 6313 - Prepayment of obligation

§ 6313. Prepayment of obligation.
(a) Right to prepay.--
Notwithstanding the provisions of a closed-end credit agreement or an open-end credit agreement, a buyer may prepay without additional charge at any time all or part of the time balance under the agreement.
(b) Refund credit.--
(1) Pursuant to a closed-end credit agreement and subject to this chapter, the seller or holder may accelerate the balance due on the agreement but shall provide a refund credit calculated as of the date of the acceleration if:
(i) the finance charges had been computed and added to the unpaid balance at the time the agreement was entered into; and
(ii) the entire time balance under the agreement is prepaid prior to maturity.
(2) The amount of the refund credit shall be computed by the actuarial method.
(3) If the amount of the refund credit is less than $1, a refund does not need to be made.
Cross References.
Section 6313 is referred to in section 6327 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 63 - Goods and Services Installment Sales › Section 6314 - Acknowledgment of payment in full

§ 6314. Acknowledgment of payment in full.
Upon a buyer's request and after the payment of all sums for which the buyer is obligated under a closed-end credit agreement or an open-end credit agreement, the holder shall deliver or mail to the buyer at the buyer's last known address an instrument that:
(1) Acknowledges that the obligation of the buyer under the agreement has been paid in full.
(2) Releases all security in the goods under the agreement.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 63 - Goods and Services Installment Sales › Section 6321 - General rules

§ 6321. General rules.
(a) Entire agreement.--
Except as provided in section 6329(c) (relating to add-on sales), a closed-end credit agreement shall contain the entire agreement of the parties regarding the costs and terms of payment for the goods and services, including a promissory note or other evidence of indebtedness between the parties relating to the transaction.
(b) Signature.--
A seller may not obtain the signature of the buyer on the agreement if the agreement contains blank spaces to be filled in after it has been signed.
(c) Installments.--
A closed-end credit agreement may provide for unequal or irregular installments.
(d) Incorporation by reference.--
A holder may, in a buyer's subsequent closed-end credit agreement, incorporate by reference the buyer's previous closed-end credit agreement and a description of the collateral for the items purchased under the previous agreement.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 63 - Goods and Services Installment Sales › Section 6322 - Contents

§ 6322. Contents.
Except as provided in section 6329 (relating to add-on sales), a closed-end credit agreement shall contain all of the following:
(1) One of the following headings at the top of the agreement or directly above the space reserved for the signature of the buyer:
(i) "Security Agreement" if the seller retains a security interest in the goods as security for the goods or services purchased.
(ii) "Lien Contract" if the seller obtains a lien on other goods or nonresidential real estate as security for the goods or services purchased.
(iii) "Closed-End Credit Agreement" if the seller does not obtain security for the goods or services purchased.
(2) The names of the seller and buyer.
(3) The place of business of the seller.
(4) The residence or place of business of the buyer as specified by the buyer.
(5) A description of the goods or services sufficient to identify them. Services or multiple items of goods may be described in general terms but in detail sufficient to identify them, in a separate writing.
(6) The purchase price of the goods and services that are the subject matter of the sale.
(7) The amount of the buyer's down payment, including the following:
(i) An itemization of the amount paid in money and goods.
(ii) A brief description of traded-in goods.
(8) The difference between the purchase price under paragraph (6) and the amount under paragraph (7).
(9) The amount included for insurance, including the specific coverage and cost.
(10) The amount of official fees.
(11) The unpaid balance, which is the sum of the amounts under paragraphs (8), (9) and (10).
(12) The amount of the finance charge.
(13) The time balance, which is the sum of the unpaid balance under paragraph (11) and the amount under paragraph (12), and the following:
(i) The number of installments required.
(ii) The amount of each installment expressed in dollars.
(iii) The due date or period for each installment.
(14) The time sale price.
(15) The following notice provision:
NOTICE TO THE BUYER
Do not sign this agreement before you read it or if it contains any blank spaces. You are entitled to a completely filled-in copy of this agreement. You have the right to pay off in advance the full amount due. Under certain conditions, you may obtain a partial refund of the finance charge.
(16) The following notice provision:
NOTICE
A holder of this agreement is subject to all the claims and defenses that the buyer could assert against the seller of goods or services obtained by this agreement or with the proceeds of this agreement. Recovery under this agreement by the buyer may not exceed the amount paid by the buyer under the agreement.
(17) A statement that the seller may collect from the buyer late fees, costs of collection, costs from nonaffiliated entities and charges for deferment and extension as provided for in this chapter.
Cross References.
Section 6322 is referred to in section 6329 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 63 - Goods and Services Installment Sales › Section 6323 - Copy of agreement

§ 6323. Copy of agreement.
(a) Delivery of copy.--
Except as provided in section 6324(b) (relating to agreement resulting from telephone or mail communications), a seller shall provide a legible and complete copy of a closed-end credit agreement to a buyer when the buyer executes the agreement.
(b) Obligation of buyer.--
Until the seller completes the obligation under subsection (a), the buyer is obligated to pay only the purchase price under the agreement.
(c) Acknowledgment.--
(1) The seller shall present an acknowledgment to the buyer specifying that the buyer has received a copy of the agreement.
(2) The acknowledgment may be a separate document or contained in the agreement.
(3) If the acknowledgment is contained in the agreement, it shall appear directly above the space reserved for the buyer's signature.
(4) The buyer's written acknowledgment of delivery of a copy of the agreement in conformity with this subsection shall be a rebuttable presumption of delivery and compliance with this subsection in an action or proceeding by or against an assignee of the agreement without knowledge to the contrary when the agreement is purchased.
Cross References.
Section 6323 is referred to in section 6324 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 12 - COMMERCE AND TRADE › Chapter 63 - Goods and Services Installment Sales › Section 6324 - Agreement resulting from telephone or mail communications

§ 6324. Agreement resulting from telephone or mail communications.
(a) General rule.--
A closed-end credit agreement that is negotiated and entered into by a buyer and seller by telephone or mail is permitted under this subchapter and subject to this section if:
(1) the seller did not personally solicit the sale; and
(2) a catalog or other printed solicitation that is generally available to the public clearly sets forth the purchase price, time sale price and other terms regarding the sale of the goods or services.
(b) Applicability.--
For a sale under this section, section 6323(a) (relating to copy of agreement) does not apply.
(c) Seller's completion of agreement.--
If a seller under this section receives a closed-end credit agreement from a buyer and the agreement contains blank spaces, the seller may insert in the appropriate blank spaces the purchase price, time sale price and other terms regarding the sale of the goods or services, as set forth in the seller's current catalog or other printed solicitation.
(d) Copy of agreement or statement.--
Prior to the due date of the first installment under the agreement, the seller shall furnish to the buyer either a legible and complete copy of the agreement or a written statement of the items inserted in the blank spaces described in subsection (c).
Cross References.
Section 6324 is referred to in section 6323 of this title.