July 17, 2018—A new Oregon law requires auto repair shops to obtain a surety bond in order to issue a mechanic’s lien when offering services to clients.
The bill aims to address the issue of some shops that abuse liens on a customer's vehicle by overbilling for work done so they can take ownership of the vehicle, according to Bryant Surety Bonds.
The new requirement was introduced by House Bill 4087 at the beginning of the year, which was signed and passed in April.
The bill also defines what owners of vehicles can do in cases in which no valid possessory lien is present, and they want to recover their vehicle.
A possessory lien grants the creditor the right to remain in possession of property under the lien until the debtor has satisfied his or her debt, according to Investopedia.
A lien is a claim that one person has over the property of another as security for the payment or debt.