On March 28, 2023, Regulation 80/2023 under British Columbia’s Motor Vehicle Act introduced modifications to the Lien on Impounded Motor Vehicles Regulation, which outlines the interest charges applicable to vehicles that have been impounded and subject to a lien.

When a vehicle is impounded, it is taken and stored by authorities due to legal issues such as unpaid fines or other violations. A “lien” represents a legal claim on the vehicle to secure payment for the outstanding debt. If the owner fails to settle the debt, the vehicle may be sold to recover the amount owed.

The regulation which details how interest is assessed on these liens. Previously, had the interest rate set at 26%, however, the recent amendment, as reflected in B.C. Reg. 80/2023, increases the rate to 28%. As a result, individuals with a lien on an impounded vehicle will now incur interest at a higher rate.

A higher interest rate will accelerate the accumulation of debt. Which may result in a greater number of vehicles being sold to recover outstanding debts.

British Columbia (80/2023) March 28, 2023