What is an Oregon Motor Vehicle Possessory Lien Bond?
Oregon auto repairers for mechanical and body work are required to post a $20,000 surety bond or irrevocable letter of credit in order to allow for the assessment of a mechanic's lien. The requirement went into effect January 1, 2022 in accordance with Oregon House Bill 2311.
Dealers and OEMs are exempt from the requirement. Towing companies are also exempt provided that the lien is only for towing and storage costs. Abandoned vehicles are not included as well.
Repairers are required to certify annually with the Oregon Department of Transportation (DOT) Driver and Motor Vehicle Services
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Why is an Oregon Motor Vehicle Possessory Lien Bond Required?
The bond protects consumers against improper use of liens by the mechanic or body shop. The bond ensures that consumers have recourse in the event of unscrupulous or illegal assertion of a lien by the shop.
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