Tuesday, 31 July 2007 17:00

Law raises service and storage charges

California Governor Arnold Schwarzenegger has signed into law bill AB 1575 (Richardson) which increases what a repair shop may charge a finance company for services and storage. Auto repair shops occasionally are faced with the situation where the customer does not pay the repair bill.

The current Civil Code provides for a mechanics lien on the vehicle, but caps. the amount of the lien against a bank or finance company that holds a security interest in the vehicle; unless the bank or finance company pre-authorized the repairs, which very rarely occurs.

This bill increases what a repair shop may charge a finance company for all work, services, and storage. The work and services cap increases from $750 to $1,500 and storage goes up from $400 to $1,025 and from $500 to $1,250 if the shops file a lien sale.

“This is a victory for the industry,” stated David McClune, executive director, California Autobody Association (CAA), which strongly supported the bill. “We have talked about how this law has needed to be updated for a long time.”

Shop owners will no longer have to settle for a low settlement cap from a finance company based on a lien sale of the repairs and storage they have made to the vehicle and the customer did not pay. AB 1575 will take effect on January 1, 2008.

Autobody welding training

In other news, CAA members in the Los Angeles area and Northern California can take advantage of a new program to get their techs welding certified. 

This training and certification is done by Lew Kinney and Associates, which will train and certify on-site at your shop so your technicians do not have to wait for results of the test.  This is hands-on, one-on-one training for metal and aluminum. Lew Kinney was to start training in Southern California around the middle of July and in August for Northern California.

Additional information about the program can be found at www.lewkinney.com. To set up training, contact Kelly McCarty at cartyscc@verizon.net or at 909-983-7310.


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