Collection on a sold car

Date: Wed, 05/05/2010 - 14:45

Submitted by eternalwaves
on Wed, 05/05/2010 - 14:45

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Total Replies: 3

Hi! I am helping my husband settle/manage debt so that we can get our lives moving forward. We sent a verification letter to Rickenbacker Collection Services, who had put a collection record on his credit report for a towing company in Goleta, CA (we used to live in Santa Barbara, CA). Neither of us had ever heard about this debt - no attempt was made to collect on it - and we were never contacted.

Just received a letter today with attached paperwork from a lien sale of a 1970 Mercedes-Benz 250 (it says SD, but there's no such thing) back in February 2006 for a car he'd sold in 2004. It says it was towed in December 2005, but he is the registered owner, according to the DMW. The problem is, this was so long ago that he doesn't have any record of the sale. He signed a release of liability, but it's possible the paperwork didn't go through, got lost, whatever, and the guy never registered the car.

Not only this, but in the years he was living in Santa Barbara, he was never contacted about the lien sale as claimed on the notice they just sent, even though he was at the same address from 2002 to 2007.

Any advice on how to handle/dispute this would be appreciated, we can't afford the cost of towing and storage and the fees to conduct the lien sale they're trying to charge.

First, if the person who bought your old car has not recorded th

First, if the person who bought your old car has not recorded the title to the car or registered it, your husband is still the legal owner. A way to solve this is to report the car stolen, then the true owner has to prove his right to the car.
The collection agency should not have been able to put a lien on any of your property without notifying you of the court action. You should go to the court house where the case was filed (which should be your local courthouse) and get the affidavit of service, then file a motion to vacate judgment due to improper/lack of service. Your local courthouse may have a pro se help desk staffed by volunteer lawyers who can help you draft the motion.

lrhall41

Submitted by OVLG Attorney on Wed, 05/05/2010 - 15:31

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Something similar happened to my Dad. He sold a car and a year l

Something similar happened to my Dad. He sold a car and a year later it was in a accident. It was still in his name. TG HE STILL HAD A BILL OF SALE!!!! The people who bought it never went to DMV and transfer the title.
In your state do the tags stay with the car? Call DMV and see how they can help you!
I think you will be ok since you have return the paperwork for the release of liability!They will just have to look it up, it's there somewhere! Good luck!

lrhall41

Submitted by on Wed, 05/05/2010 - 16:00

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Thanks for the replies. If he reports the car as stolen, will th

Thanks for the replies. If he reports the car as stolen, will there be further problems when dealing with the collection agency with disputing it as a sold car?

We will go back to Santa Barbara to see what we can do at the courthouse.

lrhall41

Submitted by eternalwaves on Wed, 05/05/2010 - 21:20

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