Print
One of your League's other main Legislative priorities this session was passed into law after unanimous votes in Committee and on the floor of the Legislature. The legislation requires that when a vehicle is left at a tow lot or if the vehicle is left at a repair shop the owner must notify the Secretary of State within 14 days of possession. "The lack of timely notification resulting in exorbitant fees that were the responsibility to the lienholder was identified as an issue through our Governmental Affairs Committee, and we learned that this was a significant issue for a number of our credit unions. We are pleased that the result is legislation that helps our credit unions and members," explained Elise Baldacci, AVP of Governmental Affairs for the Maine Credit Union League.
An Act Regarding Certain Abandoned Vehicles and Notice to the Secretary of State Regarding Those Vehicles will become law 90 days after the Legislative Session adjourns. Throughout the process, your League built strong support for the legislation by providing a number of examples of excessive tow and storage fees as relayed by credit unions, and submitting some of these examples in testimony before the Transportation Committee. Your League also worked closely with the Maine Towing Association to reach a compromise that would work for all parties. "This was about reaching a result that would achieve our goal of requiring timely notification and limiting fees. We are confident that the final bill accomplishes that objective," added Baldacci.
In addition to requiring towing companies and lots to submit written notification to the Secretary of State's Office within 14 days of possession, the final law also contains other important provisions including: if notification is more than 14 days after receipt of a vehicle or if notification is not submitted to the Secretary of State, the person holding the vehicle may not collect more than 14 days of storage fees; and daily storage charges must be reasonable and total storage charges may not exceed $900 for a 30-day period.
Resources