Dec. 1, 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.