Towing Issues: Car towed after sale was made and release mailed in, collections agency, storage fees

Question
Hi-
I am located in California but have searched around and still hope you can help me with a question. To make is short my wife sold a car back on 8-24-2007, then filled out the release of liability and sent it in to the DMV. We received a impound letter stating that the car had been towed only two weeks after the sale date. It stated that if you were not the current owner of the car disregard the letter so we forwarded it to the new owner’s address we had. Later the letter came back as undeliverable (found out he is currently incarcerated). Everything was fine until we got a call two days ago saying the matter had been turned over to collections and we were liable for cost of over $2,300 for towing and storage fees. The vehicle has already been junked and the local DMV could not look up the records. We contacted the DMV headquarters and they said that the release of liability was on file showing the sale date and that it was processed within 30 days of the sale date. We have requested a certified copy to show to collections agency. Are we still liable for the fees even though we did everything by the book and the sale date is officially registered at the DMV as being before the car was towed? We even have a copy of the original release of liability we sent in after the sale. Everything I have read on the DMV site states that the transfer date which is the sale date is the date that liability is released. We sent the release of liability in right after the sale but I guess it was not all the way processed by the DMV until after the car was towed only two weeks after the sale. With all this proof are we still liable?? Thanks so much for any help you can offer.
Marne---


Answer
From what it sounds like you followed the law, (personally I would of mailed the letter "CERTIFIED RETURN RECEIPT REQUESTED" so that I have proof of when they received it)

Now I know it sounds bad, but collection agencies hear every excuse in the world, and as such demand proof...
As to are you liable for the costs, well I think only a court would be able to determine that one, and the collection agency is only trying to get its money so they will try anything to get it...
It does sound as if the state is kind of slow on processing paperwork though, but then in California I bet they have a huge backlog of paper work for "releases of liability" as I get this kind of question quite often.

Keep on the DMV to get you the paperwork you need, and then send it to the collection agency (certified return receipt requested) and make sure you keep copies of "ALL THE PAPERWORK INVOLVED " incase it comes back to haunt you again...

But to me it sounds as if you did it right and are legal and not responsible. But then I am just a tow truck driver in Alabama who volunteers to answer questions on this board.