Transaction Recovery Fund

The Motor Vehicle Dealer Board (MVDB) is responsible for administering the Motor Vehicle Transaction Recovery Fund (MVTRF). The MVTRF reimburses individuals who have suffered loss or damage in connection with the purchase or lease of a motor vehicle due to illegal actions of licensed or registered motor vehicle dealers or salespersons.


Who Is Eligible to File a Claim?

Any person may file a claim against the MVTRF if a State or Federal court in Virginia has awarded the claimant a final judgment against a licensed motor vehicle dealer or salesperson. The claimant may request payment from the MVTRF for any portion of the judgment which has not been satisfied.



Payments from the MVTRF may be made to retail customers and car dealers who obtain a court judgment and who incur loss as a result of:

  • Fraud practiced by a licensed motor vehicle dealer or salesperson in connection with the purchase or lease of a motor vehicle,
  • A violation of the motor vehicle dealer licensing laws in connection with the purchase of a motor vehicle on or after January 1, 1989, or the lease of a motor vehicle on or after October 1, 1998, or
  • A breach of an extended motor vehicle service contract entered into with a car dealer licensed in the business for three or fewer years beginning on or after April 8, 1994.

The dealer or salesperson in question must have been licensed in Virginia when the fraud occurred.

The claimant must serve the Motor Vehicle Dealer Board with documents related to any legal action against a dealer or salesperson that may lead to a claim against the MVTRF, as per Virginia Code §46.2-1527.4. These documents should be sent to the MVDB by certified mail or the equivalent.


How to File a Claim against the Motor Vehicle Transaction Recovery Fund

  1. File a Civil Claim in any General District Court or Circuit Court in the Commonwealth of Virginia.
    • Pursuant to §46.2-1527.3, parties not eligible to file a claim include floor planners, lending institutions, lien holders, out of state dealers, and participants in consignment transactions.
  2. Let the Motor Vehicle Dealer Board know that you have filed a claim by providing:
    • A Copy of the Warrant of Debt, showing the pending court date,
    • An affidavit of facts, civil complaint (if filing in Circuit Court), or motion for judgment, and
    • A copy of your buyer’s order and proof of payment to the motor vehicle dealer.
  3. If the motor vehicle dealer is currently bonded, the MVDB will refer you to the bond company for compensation.
  4. If the motor vehicle dealer is not currently bonded, you may be eligible for payment from the MVTRF. You must provide:
  5. The claim for reimbursement may filed no sooner than 30 days after court judgment, and no later than 12 months after judgment has been awarded, pursuant to §46.2-1527.3



  • A claim is limited to $25,000 involving a single transaction. Multiple claims involving the same dealer or salesperson are limited to a total of $100,000. The $100,000 shall be prorated among all consumers who have filed claims against the same dealer or salesperson.
  • Neither interest nor punitive damages will be paid from the MVTRF.
  • For claims arising on or after April 8, 1994, against dealers or salespersons licensed on or after that date, claimants may file a claim against the dealer's surety bond.
  • If there is not enough money in the MVTRF to fully reimburse all consumers, the MVTRF will pay claims in the order in which they were filed until the limit is reached.


Assignment of Rights

MVDB will pay the consumer the amount of the unpaid final judgment, up to the $25,000 limit per claim and subject to the availability of funds, upon the claimant's assignment of all rights under such claim to MVDB.

Click here for Assignment of Claimant's Rights Form MVDB-24


Revocation of License

When a payment is made from the MVTRF, the dealer or salesperson must reimburse the MVTRF within 30 days. If the MVTRF is not reimbursed, the dealer's or salesperson's license will be automatically revoked. MVDB may also take further actions against the dealer or salesperson.


Source of Funding

The Motor Vehicle Transaction Recovery Fund is established through assessment fees paid by licensed and registered motor vehicle dealers and salespersons. The MVTRF is not supported by tax revenues.

Motor Vehicle Transaction Recovery Fund, Section 46.2-1527.1 et seq. of the Code of Virginia.