Any person owning an auto title company in Louisiana will be required to post a $100,000 bond if they have one location in the state and a $125,000 bond if they have more than one location after House Bill 1127 was passed. Previously the amount for these bonds were $10,000 and $20,000. The increased bond amount will be required on August 1, 2016.
Auto title companies are companies which are engaged in transferring or recording sales, leases or mortgages of vehicles. An auto title company is not the same as an insurance company transferring titles for wrecked vehicles or a motor vehicle dealer. The surety bond guarantees that auto title companies adhere to the laws set by the Department of Public Safety & Corrections.
Auto title companies are required to be licensed with the Department of Public Safety & Corrections. To become a licensed auto title company, applicants must submit the following:
- An Auto Title Company Application
- Proof of no committed felonies
- A surety bond in the correct amount
- A biannual fee of $400 for one location and $100 for each additional location
Licenses must be renewed every two years on June 1. Requests to renew a license must be submitted 60-days before the renewal date.
Contact the Motor Vehicle Division of Louisiana for any questions regarding general auto title company requirements. Questions about a surety bond can be directed straight to our experts at SuretyBonds.com.