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Senate advances bill letting repair shops retain vehicles after bounced checks amid lender, consumer questions
Summary
The Utah Senate advanced First Substitute Senate Bill 106 to the third-reading calendar, authorizing repair shops under due process to retain vehicles when customers’ checks over $250 are dishonored. Senators pressed sponsors on lien priority, definitions of a dishonored check and protections for co-owners.
The Utah Senate on Feb. 6 advanced First Substitute Senate Bill 106 to the third-reading calendar after extended floor debate about whether and how repair shops may retain vehicles following a bounced check.
The bill’s sponsor said the proposal would allow a repair facility, after a period of notice and due process, to take possession of a vehicle when a repair customer pays with a check that does not clear. The sponsor described a $250 threshold in the bill’s language and said banks and credit unions had reviewed the measure and were “fine” with the proposed approach.
Supporters said the measure fills a gap for businesses that perform expensive repairs and face repeated nonpayment. “After a lengthy due process, this bill would allow a…
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