Towing Issues: Tow ing co and authorization to dispose, volvo sw, ftc web

Question
QUESTION: After finding a collection charge on my credit report for a towed vehicle I contacted the towing company and ask how much did they received from the scrap processor they hung up on me. The collection agency said they gave the car away and collected nothing. It was a Volvo SW 1987. The police ticket dated 02/03/03 is authorization to depose of the car, however the towing company’s invoice charges $120.00 for traveling 6.1 miles and storage and junk slip fees $210.00 dated 02/23/03 but the Carfax vehicle history states a junk title was issued 02/11/05 two years later, that is about the same time I called about the car. The Carfax report is dated 07/22/09. What is my recourse so far they have refused to remove this from my credit report?

ANSWER: Well it sounds like this is one of those "LEGAL CREDIT QUESTIONS" which can get into various areas of the law.

First of all, many states have laws where the "sale price, verses the owed price" for towing and storage of vehicles can either be sent to collections or worse yet, DMV can be notified and either your drivers license or vehicle tags can be suspended.
Since you did not mention the state, I can not point you to the correct sections of the laws for your area.


Now dealing with the collection agency, I can only tell you that there are about a ZILLION laws on what they can and can not do, but most of them are so vague or set up for the agency that we get the shaft at times.

The FTC regulates the collection agencies and they have powers to help resolve the issue and even if you are "NOT ABLE TO GET THE INFORMATION REMOVED" you are entitled to dispute the claim and have comments added to the report.  

Check out the FTC web site and see what you can do over there, as the tow company seems to be out of the picture, and the collection agency is just out for the money.

Good luck and I hope you can resolve this issue.

---------- FOLLOW-UP ----------

QUESTION: California is the state.

Answer
Ok California has a lot of laws on this subject and I can not provide a lot of specific answers as I will not know answers to questions you know...
Best advise is to search the California DMV web site and look at the lien sections

(link    http://www.dmv.ca.gov/pubs/vctop/vc/vc_index_l.htm  )


and the sections dealing with parking and abandoned vehicles

(link    http://www.dmv.ca.gov/pubs/vctop/vc/vc_index_p.htm  )


Wish I could help more, but the "lien deficiency" issue is the key here.