2017 News

Legislative Update

From Indiana Towing & Wrecker Association, Inc (ITWA)

Bill HB1511 passed and will go into effect July 1st, 2017.

Key points:
  • Clarification of when a notice is received by the owner and lienholder.
  • Raises the maximum storage limit form $1500 to $2000.
  • For vehicles with a value under $3500, an auctioneer is not needed. The towing company also would not need to send a certified letter with the return receipt. You will still need a certificate of mailing.
  • Also for vehicles with a value under $3500, 72 hour notice must include that the vehicle is subject to sale and include the earliest possible date that the vehicle may be sold.
  • For vehicles with a value over $3500, an auctioneer and certified letter return receipt will still be required.
  • When a vehicle sells for more than the amount of the mechanic's lien, then the surplus goes to the 1st lienholder. If there is no lienholder, then the surplus goes to the local abandoned vehicle fund.
  • Clarification that this process does apply to vehicles ordered towed by state agencies.
  • Allows that sale disposal costs can be deducted from the purchase price.
  • The mechanic lien process for auto repair (IC 9-22-1) and non-consent towing (IC 9-22-6) has changed.
ITWA will be working with the BMV on determining vehicle values, effective dates for changes, and updating forms, and related interpretations. ITWA thanks members who contacted their legislators and especially those who did so regarding the maximum storage limit and removing the requirement of auctioneers for vehicles under $3500 value.


Service members Civil Relief Act

The Service members Civil Relief Act offers protections to military service members. One protection offered is that there is a requirement for a court order to enforce a lien on a military service member’s property, such as an automobile lien. If the court order is not obtained, then it is illegal to repossess or tow a vehicle that is owned by a military service member.

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