What happens in default of the payment arrangement
A Garage can release a vehicle or article after repairing it, to the customer.
This turns the Possessory Lien to a Non-Possessory Lien.
The Garage has to have an “acknowledgment of indebtedness”. Usually this is in the form of signing the invoice in an area acknowledging the Garage is owed money. There is often a warning that this loan will be registered as a lien with the PPSA (a cost to the consumer of a nominal fee).
A Non-possessory lien does not occur without this signing or acknowledgment of indebtedness taking place.
Be wary of Garages insisting that the invoice be signed prior to being explained the scope of work and the costs involved.
Seizure of article
14 (1) A lien claimant who has a non-possessory lien and who has registered a claim for lien may deliver at any time to the sheriff for the area in which the article is located,
(a) a copy of the registered claim for lien; and
(b) a direction to seize the article, in the prescribed form. 2017, c. 20, Sched. 11, s. 30.
Idem
(2) Upon receipt of a copy of a registered claim for lien and a direction to seize an article under subsection (1), the sheriff shall seize the article described in the direction wherever it may be found and shall deliver it to the lien claimant who issued the direction. R.S.O. 1990, c. R.25, s. 14 (2).