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HD 3156

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

194th Legislature (2025-2026) Introduced by Mark Cusack

Massachusetts bill requiring tow operators and storage facilities to notify vehicle lien holders of accruing towing and storage charges to protect creditors' financial interests.

Senate concurred
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Bill Summary · HD 3156

Legislative bill overview

HD 3156 requires that automobile lien holders be notified when vehicles they have a financial interest in are towed and incur storage costs. The bill establishes a mechanism to inform these creditors of charges accumulating against the vehicle, ensuring they can take action to protect their interest. This applies to situations where vehicles are towed by authorities or private towers and storage fees begin accruing.

Why is this important

Lien holders have a financial stake in vehicles and can be severely impacted by towing and storage costs that reduce the vehicle's net value or their ability to recover their loan amount if the vehicle is sold to cover debts. Without notification, creditors may be unaware of mounting costs until the vehicle's value is substantially diminished. This bill protects secured creditors' interests and prevents situations where towing/storage fees consume the equity in a vehicle.

Potential points of contention

  • Cost and administrative burden: Tow companies and storage facilities may face increased compliance costs in tracking and notifying lien holders, potentially leading to fee increases passed to consumers
  • Timing and practicality: Determining the correct lien holder information and delivering timely notification during rapid towing situations presents operational challenges
  • Scope ambiguity: The bill's definition of "certain towing and storage costs" may be unclear—whether it covers all scenarios (criminal holds, parking violations, accidents) or specific circumstances needs clarification

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

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