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Bill

HB 514

Motor vehicle lien; authorize mechanic to seek title from title loan company after nonpayment of services.

2025 Regular Session Introduced by John Hines

Allows mechanics to pursue vehicle titles from title loan companies to collect unpaid repair bills when customers default on service payments.

Died In Committee
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Bill Summary · HB 514

Legislative bill overview

HB 514 would allow mechanics to seek the vehicle title directly from title loan companies when a vehicle owner fails to pay for repair services. Currently, mechanics can place a lien on a vehicle but cannot easily access the title held by the lender. This bill aims to streamline the mechanic's ability to recover unpaid service costs by going after the collateral directly.

Why is this important

Mechanics often perform significant repair work but struggle to recover payment when customers default, especially when the vehicle is already encumbered by a title loan. This creates a cash flow problem for small repair shops and can incentivize them to refuse service to customers with title loans. The bill addresses a practical enforcement gap in mechanic lien law.

Potential points of contention

  • Title loan company liability: Lenders may oppose provisions that allow third parties to demand titles they hold as collateral, viewing this as interference with their contractual security interests
  • Mechanic prioritization: Unclear whether mechanic liens would be prioritized over the lender's interest, potentially reducing lender security and raising loan costs
  • Debt collection concerns: Consumer advocates may worry this creates another avenue for aggressive debt collection targeting vulnerable populations who use title loans

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

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