What Would Trigger a Bond Claim??
(The Potential Claimants)
- The lender or flooring company for the dealer’s inventory. If the dealer doesn’t pay his obligations to the lender, they will file a claim against the surety company and that will trigger an investigation and if justified, the claim will be paid. As a result, the surety company will subrogate against the dealer.
- The DMV also can make claims against a bond for unpaid fees or fines, etc.
- A dealer can make a claim against a dealer if they can prove (typically through a Small Claims Court judgment) that they suffered a loss at the hands of the dealer.
- The public! Again, Small Claims Court generally handles these types of claims.
**Any paid claims will result in the dealer bond being canceled, which would cancel your California Car Dealer License**
Call Mike Ramos for Your Car Dealer Bond 714-797-5780
Call Joseph Weatherman for Your Car Dealer Education 415-730-3137