The Oklahoma statutes provide methods for auto repair shops to recover the value of their service through the forced auction or sale of a vehicle. The theory is that the only way the service provider can recoup his/her costs is through the sale of the vehicle, if the owner refuses to pay. Foreclosure is the process repair shops use to recoup their costs.
In order for the mechanic or repair person to have a valid claim on the vehicle, the vehicle must be in the mechanic's possession. The mechanic surrenders his/her rights to foreclose when he/she surrenders the vehicle. This doesn't extinguish the mechanics contractual rights, merely his/her automatic right to recovery.
Occasionally, though the law is pretty clear, the mechanic will screw up the process, thereby negating his/her legal rights until the mechanic complies with the statute.
You can find the rules regarding foreclosure at 42 O.S. 91 and 47 O.S. 908. Both statutes outline the essential elements of the foreclosure process.
Here's how it breaks down (but you'll want to read both statutes to get the specifics):
- The mechanic must provide notice of the intent to foreclose by stating the mechanic's name and other pertinent information.
- The notice must contain a description of the property, including make, model, year, VIN, tag number.
- All pertinent facts, like the amount of the repair bill, the type of service, and the last contact/abandonment date.
- The sale date, time and place.
Finally, and this is what a lot of people miss, the notice must be placed in 3 public places in the county, for at least 10 days prior to the sale. The mechanic must also send the notice, via registered (certified) mail,on the same day as the notices were posted, to the owner's last known address (usually this means a DMV title search).
Note too, that 42 O.S. 91, contains certain provisions that mechanics must follow in order to insure that the special lien takes priority over all other security interests. You'd hate to foreclose on a secured vehicle, only to find out that you're going to have to pay a sizeable amount of money for not following simple instructions.
One final mention is the caveat in 42 O.S. 91(A)(5), that storage fees and other charges commence only on the day that the mechanic sends a certified lien notice. The lien is invalid unless the notice is sent within 60 days after the mechanic performs the services. See 42 O.S. 91(A)(4).
If you're a mechanic shop, or other individual performing services on a vehicle, it's important that you comply with all aspects of Title 42 and Title 47, in order to insure that your interests are fully protected. If you're already using a service, make sure they're complying with the statutes. If you need help navigating the statutory quagmire, or foreclosing on abandoned vehicles, our firm can help. Contact us at (405) 748-0318 or via email at contact@absolutelawfirm.com.