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Bill

H 354

An Act relative to notifying automobile lien holders of certain towing and storage costs

194th Legislature (2025-2026) Introduced by Mark Cusack and 1 co-sponsor

Massachusetts law would require towing facilities to notify lienholders of impounded vehicles and accruing storage costs within a set timeframe to protect lenders' collateral interests.

Hearing rescheduled to 10/14/2025 from 10:00 AM-11:30 AM in A-2 and Virtual Hearing updated to New End Time
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Bill Summary · H 354

Legislative bill overview

H 354 requires towing and storage facilities to notify lienholder(s) on vehicles within a specified timeframe when those vehicles are towed and stored. The bill aims to ensure that financial institutions holding liens on vehicles are informed promptly about towing and storage costs that may accumulate on their collateral.

Why is this important

Lienholders have a financial interest in vehicles and need timely notification to protect that interest and potentially prevent vehicles from being sold due to unpaid towing and storage fees. Without such notification, lienholders may be unaware that fees are mounting on vehicles they have a security interest in, potentially resulting in loss of collateral value or forced sales to cover costs.

Potential points of contention

  • Compliance burden on facilities: Towing and storage companies may argue the notification requirement creates administrative costs and operational complexity, particularly for smaller businesses managing multiple lienholders across different institutions
  • Cost allocation: Ambiguity about whether facilities must absorb costs of tracking and notifying lienholders, or whether they can pass costs to vehicle owners, potentially increasing towing and storage fees for consumers
  • Lienholder responsibilities: Unclear what actions lienholders must take upon notification and whether they have obligations to claim or pay for vehicles, potentially creating liability disputes between parties

Compiled from official sources — confirm details with the bill’s official record.

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