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Financial Services Law Insights and Observations

Indiana amends towing notification laws

State Issues State Legislation Auto Finance Debt Collection Repossession

State Issues

On May 6, the Indiana governor signed HB 1183, which amends the state statute concerning the release of an abandoned motor vehicle that has been towed to a storage yard or towing facility. Among other things, the bill revises notification requirements for towed vehicles, providing that a public agency or towing service must conduct a search of the National Motor Vehicle Title Information System or an equivalent database to attempt to obtain the name of the person who owns or holds a lien on the vehicle and contact that person within three days regarding charges and the potential to auction the vehicle if not claimed. The bill also provides inspection rights for owners and lienholders of vehicles and allows for a towing service or storage yard to charge an inspection fee for inspections or retrievals from the vehicle. The bill is effective July 1.

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