Episode Description / Show Notes:

• Topic Overview:
  • Can you charge storage fees for a vehicle in order to obtain a title? Many clients inquire about charging storage fees for abandoned vehicles left on their property.
  • The idea sounds appealing, but the law typically says otherwise. Charging storage fees incorrectly can waive your rights to the vehicle.
• Storage Fees Law (Illinois Example):
  • Illinois law, which is similar to most states, follows the federal UCCC (Universal Commercial Code) on storage fees.
  • According to Section 770 of the Illinois Code:
    • Before charging storage fees, written notice must be sent via certified mail to the vehicle owner or lienholder.
    • The owner must be given an opportunity to inspect the vehicle within 2 days of the notice.
    • If the notice isn't given, storage fees cannot be charged, and the owner or lienholder can retrieve the vehicle without paying any fees.
• Consequences of Failing to Comply:
  • If you fail to notify the owner or lienholder, you cannot charge storage fees.
  • The owner may take legal action in circuit court to retrieve the vehicle without paying storage fees.
• When Charging Storage Fees May Be Allowed:
  • You must be a licensed automotive facility, such as an auto body repair shop or towing service, with a signed contract from the vehicle owner authorizing storage fees.
  • Towing under legal orders (e.g., police tow) may also allow charging fees.
  • Private citizens or self-storage facilities cannot charge arbitrary storage fees.
• Alternative Ways to Obtain a Title for a Vehicle:
  • Charging storage fees is not a viable solution for getting a title.
  • There are legal methods like bonded titles, magistrate titles, and VT transfers to obtain a title.
  • These options are outlined on our website, and you can follow the steps yourself for free or consult with us for assistance.
• Free Resources and Consulting:
  • Visit our website for free, detailed guides on legitimate methods to obtain a vehicle title.
  • If you need help, we offer professional title services and consultations with licensed title agents.
• Additional Resources:
  • For more information on title-related issues, check out other videos on our channel related to similar topics.