Oregon car repair shops soon must file bond with DMV before seeking ‘mechanic’s lien’

SALEM, Ore. (KTVZ) — Disputes above payment for car or truck repairs can sometimes value automobile entrepreneurs and automobile mechanics funds, time and in some circumstances the automobile itself.

The 2021 Oregon Legislature passed a legislation to produce some fiscal respiration house for these disputes less than Dwelling Invoice 2311. The new regulation will choose result Jan. 1, 2022.

Car house owners really don’t want to do something, but vehicle mend corporations will need to prepare.

Beneath current Oregon regulation, if an vehicle fix business does not receive payment for repairs to a automobile, it has the proper to utilize for a possessory lien by way of DMV and to market the motor vehicle to recover its costs. This “mechanic’s lien” is based mostly on Oregon Revised Statute 87.152.

Underneath HB 2311, as of Jan. 1, 2022, car mechanics have to to start with have a surety bond or an irrevocable letter of credit history in the total of $20,000 submitted with DMV prior to they can apply for a mechanic’s lien. This shields auto homeowners in situation a mechanic’s lien is found to be invalid, DMV stated.

As of Jan. 1, DMV will not take mechanic’s lien purposes without the need of the bond or letter on file very first unless of course the claimant also:

  • is a franchised dealership, as defined under ORS 650.120(5)
  • is a company, as defined underneath ORS 650.120
  • holds a towing business enterprise certification issued less than ORS 822.205 or
  • is a national auction corporation titling the automobile pursuant to ORS 87.152(3).

Individuals essential to file a surety bond or letter of credit will have to certify to DMV every single year, in producing, that the bond or letter continues to be in impact.

If you are a mechanic or have an independent vehicle mend store and want additional information about filing a mechanic’s lien from DMV, please call DMV Purchaser Support at 503-945-5000 or 503-299-9999 in the Portland Metro Region.