QuestionQUESTION: In late summer of 2008, my ex-husband and I loaned my car to a friend. (The car is mine, but my ex-husband's name is on the title. Either way, it is in our name, nothing was ever signed over to the friend.) Our agreement was the friend could use the car until he could afford one for himself, or until I asked for it back. Months went by and one day he told me it broke down on him, and he left it on the side of the road. I asked him what happened and where and if he planned to retrieve it so it would not be towed. He just said "along the interstate" (I do know now that it was in his home city of Murfreesboro, TN) and that YES, he WAS going to retrieve it. A week or so later I phoned him to inquire about the car's whereabouts and condition again, even offering to pay to have it fixed myself. This time he informed me he had driven by and seen it with a sticker on it where he left it on the side of the road, and he planned to get it in a day or so. Again, I begged him to hurry so it would not be towed. He agreed and told me not to worry. Well, you guessed it: my car was towed. And it was another few weeks before the friend said he found out where it was towed to..however, he will not tell me its location. Being the title holders/owners of the car, it is my understanding that my ex-husband and I should have received a certified letter from a towing company or the police in Murfreesboro when this happened, at least by now, months later, and we still have not. (We live in Louisville, KY and Jeffersonville, IN, if that makes any legal difference.) The friend still refuses to 1. Find, retrieve and return the car to us on request as per our agreement, and 2. At least tell us the location of the car so we may try to retrieve it. My questions are as follows:
1. If we report the car as stolen, in which city would we do this? Murfreesboro (where it was last seen) or Jeffersonville (where the title holder lives)?
2. Since it was initially towed without our knowledge, are we required to pay all or any expenses relating to the towing and storage?
3. Will the friend be arrested for theft?
4. Would it hold up in a court of law to ask that the friend pay for the towing/impound expenses incurred over the last few months? (This person has since gone on to have not one, but TWO cars he is driving around in, and now that I need my car back to get to and from work again, I do not have it, nor can I afford another one, or any of these bills that I am sure have piled up somewhere with our names on them!)
5. Is there a time limit for reporting a car stolen?
6. Are we wasting our time trying to locate and retrieve our car since no one has notified us officially that it has been towed? (Meaning, if we just let it go are we "in the clear" or will we get a bill for thousands of dollars one day from some impound lot in TN?)
7. Is there another route we should pursue that we are not aware of?
I have looked online and found varying answers to some of these questions for other states, but I know laws are different everywhere. Any help you can provide would be greatly appreciated! Thank you!
ANSWER: I have to admit that this is one of the best detailed questions I have had in awhile, thanks!
From the tow company stand point this is probably what happened to the vehicle. Once the vehicle was towed the tow company must notify the last registered vehicle owner's. Notification is through certified mail or the attempt to contact the last registered owner. Since the vehicle was registered in KY, no information would be found with the vehicle in TN. The tow company is required to search other and surrounding states for vehicle ownership which sounds like they didn't do. The only people allowed or authorized to remove or retrieve the vehicle from the tow company would have been the registered owners. Since you or your ex haven't I would assume the vehicle was auctioned by now if it has been in their possession for months. Could the tow company come after you or your ex? How could they if they haven't contacted you or have any information on the car. In their eyes if no information came back on their search and didn't do any other checks then nobody owns the vehicle. If for some reason they tried after the fact (vehicle sold at auction)they would be in violation also for not contacting within the required amount of time after the tow, which is usually within 1-2 weeks after the tow.
If the vehicle was sold at auction you and the ex are no longer the owners of that vehicle. Basically, it's gone. Even if you tried to get the car back, or report it stolen, whatever, in my opinion, it would be a legal nightmare. If this went to court, you admitted that you knew what was happening but chose not to do anything about it. The judge or defense attorney may view this as you had no interest in the vehicle and may award the tow company. You could bring in the friend who had possession of the vehicle but that may just complicate the situation and hurt your case. Even if the tow company was in violation for the notifications the court may see that you were well aware of the situation and opens the doors to the tow company. Unless you are the lienholder it is your responsibility for the vehicle at all times. If it's still registered in your name or the ex's then you are the owners, not lienholders.
Reporting the vehicle stolen will really complicate the situation for everyone involved. Unless you can afford proper representation then I don't recommend this option. In most cases, you can only report a stolen vehicle if that person is not authorized to have it in their possession. You gave your friend permission or authorization to use the vehicle regardless of terms and conditions.
As for your friend, if you had a contract with terms and conditions on the vehicle, then that friend is responsible for the payment in the terms, which then kills the case of a stolen vehicle. The police could charge you with filing a false police report but is unlikely but possible. I doubt the friend has the vehicle because only the registered owners are allowed to retrieve it. The tow company wouldn't release it to just anybody or by word of mouth, if they did then there is another violation.
At this stage in the game, in my opinion, I don't think the tow company would come after you. The car was probably auction and they got something for their towing and storage. If you or your ex are worried about the tow company long term then it is possible to report the vehicle as being sold to the friend when you gave them the car. This gives you and your ex an out but once it's done, it's done. You could still try to seek the defaulted loan but you better have a good written contract with the terms and conditions because it would involve going to court. It is a civil matter and doesn't require you or the friend possessing the vehicle.
Hope everything works out and if I missed anything feel free to ask.
---------- FOLLOW-UP ----------
QUESTION: You didn't miss a thing! However, there has been one small development since I posted the original question... Apparently the car was towed by the POLICE and supposedly it sits in the POLICE IMPOUND lot, not a towing company's. Does this make a difference in the time it is held, how the owners are found, and if it is potentially auctioned off or not? Your answers were VERY helpful, thank you so much for this one last thing!
AnswerThe vehicle will still get auctioned if unclaimed, if it hasn't been done yet, and you or the ex can still report it sold as it was no longer in your possession. The police or impound yard should have notified you or the ex within a week or two after it was towed. Did a certified letter or attempted delivery of a certified letter come to you or the ex? It's my opinion but some police impound yards are usually no different than some under-performing tow companies when it comes down to proper procedures.
As a side note, if you or the ex choose to self finance a vehicle again (with a clear title) become the lien holders and make the debtor become the registered owner. With a proper written contract, it would be a clear cut case for repossession and taking them to court for the payments and releases you from any legal liability. Still, if the vehicle gets towed and you wanted it back, towing and storage fees would have to be paid. Being lienholders, if the vehicle gets towed and you have no interest in retrieving the vehicle you are not liable for any fees associated with it.
