The Expert Podcast

A lot of our clients are asking why it's so hard to do a mechanic's lien, a towing lien, or an abandoned vehicle lien. We do hundreds of professional automotive company lien packages, and they're finding that governments are becoming more particular about making sure everything is correct. A lot of towing companies and auto body shops have been doing their own mechanics liens and towing liens for years. Now, they're finding that many of them are getting rejected.

The reason why is because, in the past, the DMVs have been a little bit lax in allowing errors and mistakes to go through since they didn’t think it was a big deal. The problem now is that there's a lot of fraud in the system. Here's an article from a news story in Connecticut where the DMV commissioner is cracking down on towing companies over predatory towing practices.

What these towing companies are doing is snatching up cars where they're not supposed to be towing them, filing a towing lien, and getting a free car when they weren’t even supposed to tow that vehicle in the first place. Because of this, DMV commissioners are now carefully reviewing these paperwork packages and rejecting anything that contains even small errors.

Even if you did everything right with the tow, if you didn’t do it right with the paperwork, it’ll get kicked back. And this isn’t just happening in Connecticut—every state is enforcing stricter policies. DMV commissioners across all states are members of AAMVA (American Association of Motor Vehicle Administrators), and they share information about fraud related to mechanics liens and towing liens. As a result, there is now more scrutiny on the application process for obtaining a title when filing for an abandoned or towed vehicle.

Make sure you have your paperwork right. Our website provides detailed instructions on how to do this correctly. We also offer title consulting services if you need assistance with the process. If you’re a towing company, repair shop, dealership, or body shop, it’s crucial to follow the proper procedures to avoid issues with incorrect paperwork.

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