VICTORIA — British Columbia is bringing in simplified lien rules next month aimed at streamlining debt collection for businesses.
The Finance Ministry says in a statement the new Commercial Liens Act replaces a patchwork of outdated laws and “will make it easier for businesses to collect debts for services they provide to repair, store or transport goods.”
Liens allow service providers to retain a customer’s property to ensure payment for services performed.
“The change reduces risks and costs, meaning service providers will be less likely to lose their liens and the payment that liens secure,” the ministry says, noting the new rules will also simplify lien enforcement without requiring court action.
The changes follow recommendations from the British Columbia Law Institute and Saskatchewan’s earlier adoption of the Uniform Liens Act, bringing B.C. closer to nationwide consistency in lien legislation.
B.C. Law Institute lawyer Kevin Zakreski says in a blog post the organization is pleased with the move. He notes the institute’s 2003 report described existing lien laws as “outdated, inflexible and inefficient,” recommending the Uniform Liens Act prepared by the Uniform Law Conference of Canada as a more comprehensive alternative.
The new Commercial Liens Act consolidates three separate lien statutes into one set of simplified rules. Existing liens under previous legislation will continue as commercial liens under the new act.
The new legislation takes effect June 30.
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