Car got towed yesterday .. would appreciate some insights

Hi,

My sister's vehicle was towed (IMO illegally) after midnight last night. I would really appreciate any legal clarification of what happened, ideally by lawyer or cop as this situation leaves me thinking having title to a car means squat in CA.

First off, Here's some background information:

My sister got a loan from a big named loan company a few years ago and bought a car out of state.

Due to someone's mistake, most likely out of state dealer, her name is the ONLY name that ended up on the car's title. No lien holder name on title.

She missed two month's payment so last night the repo guys showed up and decided to tow the car. She explicitly told him that she has title to the car and he's not allowed to tow. She said she's going inside the house to the the title to show him that she owns the car. While she ran inside. He drove off. So I am minding my own business when she ran into my room screaming that someone took her car. I ran outside and saw the tow truck at the end of the street.

I figured that there was only one way to the freeway so I jumped into my car ( had to wait almost 2 minute for the stupid garage door to open and close ) and then sped after him. I wanted to try and stop him or at least see where he's taking the car before calling the police. I guess the tow guy is really smart and hid somewhere instead of going to the freeway because even going very fast, I didn't catch him on the 30 minute drive.

So we called the police and reported the car stolen. The police in turn told us it was a repo tow, and they will contact the tow company for us in the morning. They did not give us the name of the company or location where the car was towed to.

So short version of a bunch of calls to police, to the loan company, we finally got in contact with the tow yard, and they agreed to release her car without us paying any fee, but will not tow it back to the original place they took the car.

What the tow company told us was simply that they got a tow order from the loan company. It doesn't even matter what paper work we would have shown the driver. It would still have been towed.

What the police told us was that we can not report this car stolen, because the police knew where it was, but they wont help us retrieve the car because its a civil dispute.

So,

And yes, I am aware that its a technicality that the only registered owner is my sister and the loan company is not also on the title.

But the title SHOULD mean that by California law, the ONLY owner of the vehicle and the ONLY person with rights to that vehicle is the parties named on title. In this case, ONLY my sister.

The fact that my sister owes the loan company money should be dealt in financial court if anything because the loan company failed to put a lien on the vehicle at registration !

The tow company itself should not have knowledge of the financial information and should be concerned only with their job which is towing cars. They should have to check prior to towing that the person ordering the tow is in fact allowed to. (ie on title)

Now,

My questions:

1. How can it not be a stolen vehicle, if the ONLY registered owner on title ( my sister ) does not have possession of the vehicle, and not knowledge of the location of it ?

2. How can they tow a car without checking who's name is on the vehicle title?

Anyways, sorry for the super long post.

I am going to the tow company tomorrow and I am livid right now. The driver was disrespectful and dismissive as was the tow company and even the police.

I want the car back to its original place for free or I am filing a law suit or at least a complaint against both the tow driver and the tow company with the BBB.

If it is true that anyone can order a tow and tow companies will just tow any car regardless of ownership on title, then I am going to have a lot of fun in the next couple months.

 

So she didn't make payments and the car got towed? What's the problem?

She signed legal documents saying she agreed to repay the loan and the car is collateral. She stopped paying, they took the car. End of story.

I'm guessing the legal docs would probably trump a clerical error in court.

 

Problem is the car is NOT collateral since there's no lien on title!

Yes, she does owe money, but since the car is not collateral, it becomes an just a financial loan. That is between her and the loan company. The loan company can take it up in financial court or a law suit.

The car's title clearly states only ONE owner with no lien.

So by according to the state of California, the bank does not own the car. The bank should have NO right to tow it.

 

I used to work for a car leasing firm, and we would repo cars all the time. The first thing to remember is that the repo guys (tow truck driver) is an agent of the lienholder...he is doing what he was contracted to do and is not liable for what his client (the lienholder) has represented. His only responsibility is to ensure via a VIN check that he is repossessing the right vehicle (people switch plates with their neighbor's near-identical vehicle often!). So you're probably barking up the wrong tree with the repo man.

Any reputable repo guy (often a contradiction in terms) will file with the police/sheriff that they were contracted to repo the car, preventing a "stolen vehicle" report from being filed and/or him being prosecuted.

A lienholder does not have to be on the title in order for the lien to be in effect. There is a legally binding contract between the loan company and your sister with the vehicle as collateral. So the error on the title does not release the lien, or prevent the lienholder from taking action for non-payment.

In short, your sister didn't meet the terms of her finance contract, and the lienholder took a "default remedy". (It is fairly common practice to repo a car after just 2 missed payments, sometimes 3). You can try the BBB, that is probably your best course of action, but given the facts of the case, I would not expect much.

Sorry I can't give you better news...

 

Since the tow company has agreed to release the car without us having to pay any fees, I am under the assumption that to some degree they know they were wrong.

I just want to know the technical laws involved in this.

Also, beside refusing to 'get involved in a civil matter', the police charged us $15 for them talking to the tow company. =T

 

I definitely agree that they should be able to take action against her for missing payment. That is not unreasonable and that is not what pisses me off.

It was the fact that the tow truck driver while being responsible and reporting the tow to the police, he did not bother to check the proper ownership of the vehicle even when TOLD specifically that she has title. That would seem to be negligent to me. That is what gets me angry.

This situation leads me to believe that tow truck companies will in fact tow random cars if given an order.

 

Maybe just a CYA move on their part. or they could be hoping they get to repo it again...

That is a very interesting revenue source...I'd ask for the list of fees from the city/county on that one.

 

If I understood the OP correctly, he's looking to find a way out of a situation because of a technicality (clerical error). Sorry, won't win my sympathy. If your sis has defaulted on a loan where the repossession terms have been clearly drawn up beforehand, then she deserves to lose the car. Whether or not the 'i's were dotted or the 't's were crossed, the end result was a fair one.

 

Dude, your sister would not have these problems if she made the payments. What is so hard for you to understand? So what if her name is the only one on the title. One quick statement of facts by the loan company and that will be fixed. You thought a little technical error would allow her to keep the car, or somehow enable you to demand that the tow company bring it back to you for free? It is clear your sister KNEW about the error beforehand, and sat tight, hoping that this technicality would allow her to hang on to the car. Really, she should have gotten on the phone to the loan company and pointed out the mistake.

It is beyond stupid for you to expect the tow truck operator to have any interest in this. And no, you can't have random cars towed. There is a specific set of paperwork and legal procedures...none of which involve inspection of the title. Whether the lienholder's name is on the title or not, there are plenty of other documents that prove the car was collateral for the loan. If your sister had sold the car, she would be guilty of conversion... don't assume you can screw over lenders because of simple paperwork errors. If the title has an error, it can and will be corrected. You don't have a leg to stand on.

Nice family.

 

Beyond stupid ?

Ok. I guess its stupid to assume that someone taking your car away would be interested in if you actually own the car or not.

And what does a title prove? Supposedly ownership of the vehicle.

Yes I understand my sister was in the wrong here not paying for the LOAN. Morally speaking.

But strictly LEGALLY speaking (and please, if you dont know the law, please avoid answer this specific question), does the loan become an UNSECURED loan if the loan company failed to put a lien on title ?

 

In a word, no.

 

My guess is the tow truck driver did NOT hang around for his safety. She could easily be going for a gun, knife, or other weapon instead of title.... I don't blame him a bit.

Count her lucky that the car is released to her. I foresee many legal problems for her in the future unless she gets caught up in her payments.

Wonder if this thread will get to 100+ pages like the Lambo one.

 

Hey guys,

First of all, thank you for all the reply. Some words were harsh, but in the end, its just opinions.

I talked to several people 'in the business' and in the end, I guess title really don't mean diddly squat in these situation.

By California registration standards, yes my sister is technically the ONLY legal owner, but by California Civil Codes and other federal tax and financial laws, the bank AND your sister are the both owners.

Tow companies will take the word of big loan companies because in the end, if they get in trouble, they could always just pass the buck back to the loan company. We would have needed to take the situation up with the loan company in court, and the 'technicality' issue would not fly there.

And I guess you cant report a stolen car if the police has knowledge of the location.

So the tow yard releasing the car is the only thing they would be obligated really to do and the best possible scenario.

Learned a few legal stuff from this situation.

Like I said before, I am not trying to say that my sister was in the right, but merely trying to see what I am dealing with legally.

Anyways. I am going to help her get caught up on her bills, and we'll get the car back tomorrow. The world continues to turn.

Thanks again.

 

Maybe I'm ignorant, but when you have a loan for something, do you really own it?

 

It depends on the loan, I think.

 

You own it until you stop paying for it. Then the collateral is seized to satisfy the loan.

 

Basically my point is, until you have paid for something 100%, it isn't truly yours. It may be sitting in your garage, but the fact that a couple missed payments mean it gets the hook says you are merely the custodian.

 

That's what I've always thought and learned. Until you have paid off that loan, you are more or less renting the car from the financial institution.

 

True enough. Technically you own it unless you miss payments, but in reality you don't really own it until it's paid off.

 

Maybe with cars. I think most auto loans are set up as secured loans with the car as collateral. With a home it is different, at least in Florida. You own the home when you buy it, even with a mortgage. The home is still security for the note, but it's far more difficult to foreclose on a home than repo'ing a car. Couple well-publicized cases down here where mortgage companies couldn't produce proper documentation and so they owners skated on foreclosure. I don't think that happens with cars (or boats, motorcycles, etc) where the banks generally hold the title.

 

Funny how every once in a while we get these guys who are indignant their little 'scheme' isnt going their way and they expect sympathy/support from us.

Seriously...the fact that you felt a clerical error on her title voided the rest of the loan paperwork she signed shows you have a lot of maturing to do.

 

I agree 100%. Personal responsibility is sorely lacking in this country today. His sister didn't pay, so the car gets towed. I'm still not sure why he's so indignant about that. This is not on the tow company, or the company that made the clerical error on the title. It's on his sister for not paying her bills, or for buying a car she cannot afford.

 

Agree. Further, do you really think your sister's objection is unique? I seriously doubt it would be the first time he's heard, "oh wait! You're wrong, you're NOT supposed to tow my car".

Tell her to pay her bills or liquidate assets she can no longer afford PRIOR to this point in the future.

Sadly, not even then. Try not paying your property taxes. We're all just renting from the Gov.

 

Cars and homes are slightly different in this respect.

 

Most of the time on a car repossesion the bank goes in the tank anyhow. They are on the hook for the amount that the person negotiatied with the selling party. They then go get a rapidly depreciating asset from the debtor and sell it at wholesale prices at auction. Add in all of the reposession fees and such and you can see that it is a losing proposition for the banks to be out repoing cars. They just want to get as much back from those deadbeats as possible...Oh, yeah, to the original poster, that's right I called your sister a deadbeat. It is people with these attitudes as to why this country is in the financial state that it is. People overbuy and take little to no personal responsibility for their own actions. These are the same people that trash their houses when faced with forclosure and overheat the engines of their boats when faced with reposession. It makes me sick.