TSSEA meets the RSLA: How a PPSA Lienholder Gets the Asset Back and the Bill Correct

Overview

When collateral sits in a tow yard, Ontario’s Repair and Storage Liens Act (RSLA) provides two pathways depending on whether the vehicle remains in possession or has been released. The Towing and Storage Safety and Enforcement Act (TSSEA) strengthens a lienholder’s position by requiring operator certification, rate disclosure, and strict compliance protocols.

Path #1: Vehicle Still in Yard – RSLA Section 24 Application (Possessory Lien)

• Pay into court or post security for the claimed amount, then file an Application for Initial Certificate under RSLA section 24
• Upon service, the storer must release the vehicle within 3 days unless they properly object; the dispute then centers on the funds held in court rather than the asset
• For claims under $50,000 (as of October 1, 2025), use RSLA standard forms and file in Small Claims Court
• Claims exceeding $50,000 require Superior Court proceedings

Path #2: Vehicle Released But Lien Registered – RSLA Section 23 Application (Non-Possessory Lien)

• File prescribed forms for a Section 23 Application in Small Claims Court to challenge the lien’s validity, amount, and priority, and to amend or discharge the registration
• Claims exceeding $50,000 must proceed in Superior Court

Leverage Under TSSEA: Towing and Storage Regulatory Rules

TSSEA establishes provincial oversight mechanisms that secured creditors can use to audit charges and documentation:

Certification Requirements
Tow and storage operators must hold provincial certificates and adhere to a code of conduct. Request certificate numbers and verify their status through Ontario’s official portal.

Maximum Rate Schedules
Operators must file rate schedules; all charges must comply with these filed limits. Verify rates and certificate status on Ontario’s regulatory portal.

Consent and Disclosure Obligations
Drivers must provide a rights information sheet, obtain signed consent to tow, display their certificate upon request, and permit retrieval of personal property at no cost. Request the signed consent form and rights sheet documentation.

The RSLA Notice Requirement: A Tool to Limit Storage Charges

For Ontario-registered vehicles, if the storer fails to send required notice within 15 days of receiving the vehicle, storage lien amounts are generally capped at approximately 60 days against parties entitled to notice (owners and secured parties). This limitation becomes leverage to reduce inflated bills.

Checklist for Secured Creditors (PPSA Lienholders)

Request and verify the following documentation:

1. Operator and storage facility certificates
2. Filed Maximum Rate Schedule with itemized tow and storage invoices matching those rates
3. Signed Consent to Tow form and rights information sheet provided to the customer
4. Proof of timely RSLA notices sent to owner and all secured parties
5. Daily storage calculation (entry/exit dates) against filed maximum rates, including administrative fees
6. If documentation is unavailable or figures don’t align: attempt negotiation; if unsuccessful, proceed with section 24 (vehicle recovery) and/or section 23 (lien challenge and amount dispute)

Why This Framework Matters

“RSLA expressly ties towing/storage lien amounts to the TSSEA-prescribed requirements, so TSSEA non-compliance can limit or reduce an inflated lien.”

TSSEA compliance obligations create documented checkpoints that directly affect the enforceability and amount of repair and storage liens under Ontario law.

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For paralegal assistance with RSLA audits, section 23 or 24 applications, and vehicle recovery matters, contact Precision Paralegal Services.