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Consumer Guide: Car Bond Law

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Consumer Guide: Car Bond Law

Published: April 2, 2008

1. Any customer with a lien placed on his vehicle for unpaid repair work performed by a vehicle repair shop may have his vehicle released from that lien by filing a cash or surety bond with the clerk of the court in the circuit in which the dispute occurred. The bond filed with the clerk must be:

(a) payable to the person claiming the lien

(b) in the amount stated on the invoice; and

(c) conditioned for the payment of any judgement that may be entered on the lien. In order to post the bond it is not necessary to begin judicial proceedings, nor are there any particular forms for posting the bond, unless specifically required and provided by the clerk. Once the bond is posted, the clerk will automatically issue a certificate which will notify the lienor that the bond has been posted and direct the lienor to release the vehicle.
The lienor will have 60 days to file suit to recover the bond, and if not recovered within that time, the bond will be discharged. If the lienor does file suit, the reviling party will be entitled to court costs and attorney's fees.

2. If after receiving a copy of the certificate issued by the clerk, the lienor does not release the car, the customer may begin judicial proceedings to compel the lienor to release the vehicle. To do so, the customer need only establish that:

(a) The bond was issued in the proper amount;

(b) A certificate was issued by the clerk pursuant to this section;

(c) Any person authorized to release the vehicle actually received a copy of the certificate;

(d) The person authorized to release the vehicle failed to do so.
If the customer receives a judgement in his favor, he may be entitled to damages, court costs, and attorney's fees. Should a judgement be given in favor of the repair shop, the shop may be entitled to only attorney's fees.

3. Any repair shop or person authorized to release the vehicle, who does not do so after receiving a copy of the certificate, is guilty of a misdemeanor of the second degree.

4. Any customer who stops payment on a credit card charge or check drawn in favor of the repair shop on account of an invoice or who fails to post a cash or surety bond as instructed above, will be prohibited from any recourse pursuant to this section against the repair shop.

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