Oregon Passes 'Mechanic's Lien' Law

Order Reprints

Dec. 2, 2021—The Oregon Legislature recently passed a bill that will require auto repair shops to go through an extra step to file a "mechanic's lien." 

Under current state law, auto repair shops can apply for a possessory lien that would allow the business to sell the vehicle and recover costs according to a report from KTVZ 21. With the new law, which will take effect Jan. 1, Shop owners must obtain a surety bond or an irrevocable letter of credit valued at $20,000 with the DMV before applying for the lien.

According to the report, this protects vehicle owners in the case of a fraudulent claim. 

Surety bonds and letters of credit must be certified with the DMV every year.

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