Mississippi House Bill HB72

Mississippi 2023 Regular Session

• Introduced: 1/4/23
• Refer: 1/4/23
• Failed: 1/31/23

Caption

Motor vehicle lien; authorize mechanic to seek title from title loan company after nonpayment for services.

Impact

The impact of HB72 is significant as it modifies existing state law concerning mechanics' liens and their ability to secure payment for their work. By granting mechanics more authority over the vehicle's title in the context of title loans, it aims to streamline the process of collecting unpaid debts. This change is expected to provide mechanics a more effective recourse against nonpayment, which could potentially reduce losses incurred from unpaid services. Furthermore, it shifts some responsibility onto title loan companies regarding the vehicle's ownership and payment obligations.

Summary

House Bill 72 amends Section 85-7-107 of the Mississippi Code of 1972 to empower mechanics with the right to seek the title of a vehicle from a title loan company in cases of nonpayment for services rendered. This new provision is applicable when the vehicle owner acquires a title loan on the vehicle after the mechanic has already started the repairs. The intent of this amendment is to allow mechanics to better protect their financial interests related to unpaid labor and materials used in repairs, thereby enhancing their right to the vehicles they work on.

Contention

Discussions surrounding HB72 might include concerns about the implications for vehicle owners who may face challenges when dealing with both mechanics and title loan companies. Opponents could argue that this change might create additional financial burdens for low-income individuals who rely on title loans, as it could complicate their ability to reclaim their vehicles in instances of financial hardship. Additionally, there may be debates about the balance between protecting the rights of service providers and ensuring fair practices for consumers in the financial and automotive industries.