Lien Processing for Florida Tow Companies

Lien Processing for Florida Tow Companies

According to Florida House Bill 431, the reason for the change is to stop fraudulent delivery of the notice of lien and fraudulent or inflated charges.

Effective Feb. 1st, 2021 the bill:

  • Revises content and mailing requirements for notices of lien and sale;

  • Revises procedures for identifying unknown vehicle and vessel owners and lienholders;

  • Requires repair shops to allow inspection of vehicles subject to a claim of lien;

  • Allows a copy of an electronic or paper title to evidence an interest in a vehicle or vessel;

  • Allows lienholders to post a bond for the release of a vehicle subject to a claim of lien for repair;

  • Allows owners and lienholders to post a bond for the release of a vehicle or vessel subject to a claim of lien for towing and storage charges at any time before the sale of the vehicle or vessel;

  • Permits administrative fees of no more than $250 for the repair, towing, or storage of vehicles, prohibits fees not expressly authorized and caps the total amount of fees that may be charged at $250;

  • Requires lienors to file specified documentation with the Department of Highway Safety and Motor Vehicles (DHSMV) prior to transferring title to a vehicle or vessel sold to satisfy a lien for repairs, towing, or storage;

  • Prohibits the DHSMV from transferring title to a vehicle or vessel without certain documents; and

  • Requires a third-party service certified by the DHSMV to send all notices of lien and sale.



More information on new requirements:
  • All notices must be sent as a certified letter

  • Return addresses (your company's address):

    • Must be the same on every letter

    • Must match the name and address of the business that is on file with the Florida Division of Corporations

    • If the return address requirements aren't met, the paperwork could be rejected by the state.

  • The outside of every envelope must include the last 8 of the VIN + Xs preceding it for the other numbers in the VIN, as well as a contact phone number

  • An NMVITS database check is required within 7 days prior to sending a letter, and the transaction ID must be reported to the state.

  • Towers don’t have to report their daily storage rate to the state.


You can meet all of these requirements through Omadi's partnership with ADD 123.