The Consequences of VSF Notice Letter Noncompliance: What You Need to Know
The All-Important Notice Letters
In the vehicle storage industry, failing to follow the letter of the law can be costly. This is particularly true when Vehicle Storage Facilities (VSFs) in Texas draft and send notice letters as required by the Chapter 2303 of the Texas Occupations Code. These letters not only inform vehicle owners and lienholders of the vehicle's storage status, location, and their rights, they also meet specific requirements under the VSF Act. If those requirements are met, storage fees accrue. If they do not comply, the consequences are serious.
Why Notice Letters Matter
Notice letters serve several vital functions:
Legal Compliance: Ensuring adherence to state laws and regulations.
Transparency: Providing clear information to vehicle owners and lienholders about the status and charges associated with the stored vehicle.
Financial Protection: Helping storage facilities secure payment for services rendered and ensuring daily storage fees accrue.
Informing Owners/Lienholders: Informing vehicle owners of their rights and the procedures to reclaim their vehicles.
Checklist for First and Second Notice Letters
First Notice Letter
Timeline for Sending Notice
Requirement: The first notice must be sent within five days of accepting the vehicle for storage.
Citation: Texas Occupations Code §2303.151(a)
Contents of the Notice
Vehicle Information:
Make, model, color, license plate number, and Vehicle Identification Number (VIN).
Citation: Texas Occupations Code §2303.151(b)(1)
Storage Facility Information:
Name, address, and telephone number of the vehicle storage facility.
Citation: Texas Occupations Code §2303.151(b)(2)
Charges:
An itemized list of charges and the daily storage rate.
Citation: Texas Occupations Code §2303.151(b)(3)
Rights of the Owner:
A statement that the vehicle is subject to a storage lien.
Information on the right to claim the vehicle and the process for doing so.
Citation: Texas Occupations Code §2303.151(b)(4)
Delivery Method
Requirement: Notice must be sent by certified mail, return receipt requested.
Citation: Texas Occupations Code §2303.151(a)
Recipient
Requirement: Notice must be sent to the registered owner and each recorded lienholder.
Citation: Texas Occupations Code §2303.151(a)
Second Notice Letter
Timeline for Sending Notice
Requirement: The second notice must be sent no earlier than 15 days and no later than 21 days after the first notice.
Citation: Texas Occupations Code §2303.152(a)
Contents of the Notice
Vehicle Information:
Make, model, color, license plate number, and Vehicle Identification Number (VIN).
Citation: Texas Occupations Code §2303.152(b)(1)
Storage Facility Information:
Name, address, and telephone number of the vehicle storage facility.
Citation: Texas Occupations Code §2303.152(b)(2)
Charges:
An updated itemized list of charges and the daily storage rate.
Citation: Texas Occupations Code §2303.152(b)(3)
Rights of the Owner:
A statement that the vehicle is subject to a storage lien.
Information on the right to claim the vehicle and the process for doing so.
Citation: Texas Occupations Code §2303.152(b)(4)
Public Sale Information:
A statement that if the vehicle is not claimed, it will be disposed of at a public sale.
Citation: Texas Occupations Code §2303.157
Delivery Method
Requirement: Notice must be sent by certified mail, return receipt requested.
Citation: Texas Occupations Code §2303.152(a)
Recipient
Requirement: Notice must be sent to the registered owner and each recorded lienholder.
Citation: Texas Occupations Code §2303.152(a)
Summary
First Notice:
Sent within five days of vehicle acceptance.
Includes detailed vehicle information, storage facility information, itemized charges, and owner's rights.
Sent by certified mail to the registered owner and lienholders.
Second Notice:
Sent 15-21 days after the first notice.
Includes updated vehicle and storage facility information, updated itemized charges, owner's rights, and public sale information.
Sent by certified mail to the registered owner and lienholders.
By following these checklists, Vehicle Storage Facilities can ensure compliance with the Texas Occupations Code, Chapter 2303, thereby protecting their legal and financial interests.
Disclaimer: This blog post was written with the assistance of an AI language model developed by OpenAI. While the content has been carefully curated and reviewed, it is always recommended to consult with a legal professional or the appropriate regulatory bodies for specific legal advice or concerns.
Helpful Links
Texas Occupations Code, Chapter 2303 – Full text of the relevant Texas law.
Texas Department of Licensing and Regulation (TDLR) – Resources and guidelines for VSFs.
Vehicle Storage Facility (VSF) Program - TDLR – Detailed program guidelines and compliance requirements.
Disclaimer: This blog post was written with the assistance of an AI language model developed by OpenAI. While the content has been carefully curated and reviewed, it is always recommended to consult with a legal professional or the appropriate regulatory bodies for specific legal advice or concerns.