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Bill would require landlords to notify lienholders about abandoned vehicles; property managers warn of administrative burden
Summary
House Bill 3,371 would require landlords to notify vehicle lienholders when a vehicle is abandoned on rental property. Credit unions say the change would protect secured lenders; property-management groups opposed on burden and privacy grounds.
House Bill 3,371 would require landlords to notify lienholders about abandoned vehicles in the same way the law currently requires notification for abandoned manufactured homes, recreational vehicles, and floating homes.
Proponents including the GoWest Credit Union Association said the change resolves a recurring, costly problem: when a vehicle subject to a secured lien is abandoned on rental property and subsequently sold without the lienholder being notified, the lien can be extinguished by retitling that leaves the lender unsecured.
Hal Scoggins, outside counsel for GoWest Credit Union Association, told the committee that other entities with possessory liens — towing and storage…
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