Governor Signs Vehicle Storage Fee Initiative

Last Friday, Governor Rauner signed into law HB 2642 (Cassidy/Koehler) which amends the Labor and Storage Lien Act and the Labor and Storage Lien (Small Amount) Act. P.A. 99-0759 requires repair shops and garages that seek to impose fees in connection with the storage of a vehicle, to provide written notice to the lienholder of record prior to the assessment and accrual of such fees. The written notice must include the rate at which fees will be incurred and must be sent by certified mail.

The new law also requires repair shops and garages to provide an opportunity to inspect the vehicle on the premises where the vehicle is stored, and allows the lienholder to choose whether to make payment with cash, cashier’s check, certified check or wire transfer. This bill was a joint initiative introduced by the Illinois Credit Union League, and supported by CBAI, the Illinois Bankers Association, and the Illinois League of Financial Institutions.

CBAI thanks the sponsors, Representative Kelly Cassidy (D-Chicago) and Senator David Koehler (D-Peoria) and also Senate President John Cullerton and his staff for their persistency in getting this bill passed after it initially stalled in the House.

August 15, 2016