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Auto Loans and Repossession Creditor actions following late payment or default on motor vehicle loans.

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Old 06-01-2006, 03:24 PM
clif clif is offline
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Default Negligent Police Agency
This is a little confusing, so bear with me and feel free to ask questions... (BTW This happened in Michigan.)

Back in January one of my cars was towed for having improper registration. (Private party called the towing company.) It took some calling around, but I managed to find where it was and got a slip to allow me to remove my belongings. After having the car for roughly two days, the towing company wanted nearly $400 to get it back.

Thinking this was luducrous, I asked if there were any other options. The person informed me they could junk it for $200. Not nearly as bad, I asked if it was ok if I come back in a week (when I had the funds) and do that. They agreed and I went on my way.

One week later my wife was all but called a liar on the phone when she tells them we have the $200 and want them to junk it. They claimed that offer was only good for five(?) days after the towing. However, we were never informed of this.

At this point I started looking into legal options. I eventually found out that I should receive a notice stating how I could challenge the towing fees.


This is where things get interesting...


Roughly a month and a half later I receive the notice. After looking it over, I find my way to the Michigan Vehicle Codes, Act 300. As the car wasn't deemed as scrap, I looked over Section 257.252a. According to subsection 11, the police are required to enter the car information into what's known here as the LEIN system within 24 hours. Once it's entered, the Secretary Of State sends of the notice within seven days.

On the notice, it cited Section 257.252f. Subsection 2 basically states that the police "shall have the burden of showing by a preponderance of the evidence that it has complied with the requirements of this act in processing the abandoned vehicle or vehicle removed under section 252d."

Section 252d contains three subsections. Subsection 3a states the police must "Follow the procedures set forth in section 252a." Getting back to the "within 24 hours" portion of 252a; the police took well over 24 hours to enter the car into the LEIN system.

I went to the hearing, evidence in hand, and explained myself. The police had stated that because I requested a slip to remove my property they assumed I would get the car also. (Which makes no sense to me. If I wanted the property I'd get the property. If I wanted the car, I'd get the property with the car!)

I was asked by the judge to quote (i believe it was) 252f. I was then stopped and told that because the police didn't request the car to be towed, they didn't have to follow the laws relating to how it was processed. (Those were nearly her exact words. I still need to grab a transcript though.)

Ironically, the judge dismissed the hearing. From what Section 252f subsection 3 states, that isn't even an option.


Now I have a credit company breathing down my neck for money I (from how I'm reading these laws) do not owe. From what I see, the PD is required to pay the debt due to their neglegence in processing.

I've been trying to contact a number of lawyers about my situation and I've got the cold shoulder from all of them.

I'm at a loss as to what to do at this point... Any ideas?
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Old 06-01-2006, 07:23 PM
Mr. Knowitall Mr. Knowitall is offline
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Default Re: Negligent Police Agency
The statute you mention says "(5) A police agency that has received a vehicle taken into custody as abandoned shall do all of the following:..."

But you indicate that it was a private tow, that the police agency never received the vehicle, and that appears to be what the judge found.
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Old 06-02-2006, 06:38 AM
clif clif is offline
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Default Re: Negligent Police Agency
Actually, subsections 3 through 8 deal with tows from public property. Subsections 9 through 15 deal with tows from private property. As per subsection 9:

"If a vehicle has remained on private property without the consent of the property owner, the owner of the private property may have the vehicle taken into custody as an abandoned vehicle by contacting a local towing agency."
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Old 06-02-2006, 06:57 AM
Mr. Knowitall Mr. Knowitall is offline
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Default Re: Negligent Police Agency
That's not correct. Subsection 10 deals with the duty of a private property owner to notify the police of a tow. Subsection 11 (and thus subsection 12) specifically refers to vehicles the police have taken into custody. Subsection 10 requires the police to put the vehicle in to the LEIN system, but has no 24 hour requirement.

It isn't clear, either, what you think your damages are. You apparently knew where your car was and even got a police slip to recover your personal property. What difference would it have made had you also received a notice from the Secretary of State?
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Old 06-02-2006, 08:12 AM
clif clif is offline
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Default Re: Negligent Police Agency
Quoting Mr. Knowitall
That's not correct. Subsection 10 deals with the duty of a private property owner to notify the police of a tow. Subsection 11 (and thus subsection 12) specifically refers to vehicles the police have taken into custody. Subsection 10 requires the police to put the vehicle in to the LEIN system, but has no 24 hour requirement.
"(10) Before removing the vehicle from private property, the towing agency shall notify a police agency having jurisdiction over the vehicle that the vehicle is being removed. The police agency shall determine if the vehicle has been reported stolen and have the vehicle entered into the law enforcement information network as an abandoned vehicle.

(11) Within 24 hours after taking the abandoned vehicle into custody, the police agency shall notify the secretary of state through the law enforcement information network that the vehicle has been taken into custody as abandoned. ..."

As per subsection 9:

"(9) If a vehicle has remained on private property without the consent of the property owner, the owner of the private property may have the vehicle taken into custody as an abandoned vehicle by contacting a local towing agency."

The towing agency flagged the car to the police as required. They the towing agency acted as custodian. The police entered the car into LEIN and, based on asumption, removed it. Then (I'm guessing when the towing company wanted to dispose of the vehicle?) they re-entered it and I received the information.

In all technicality (section 257.221 sub 2), it should have never been removed at all. But rather the information updated to reflect it's current status.



Quoting Mr. Knowitall
It isn't clear, either, what you think your damages are. You apparently knew where your car was and even got a police slip to recover your personal property. What difference would it have made had you also received a notice from the Secretary of State?
I initially wanted to challenge the fees and basically get the car scrapped at $200 as I was told I could do. However, it took over a month to receive the notice which contained the information and paperwork I needed to do so. I had not removed the vehicle from the lot as it wasn't required I do so if I wanted to petition it.

I don't want any damages myself. I want the police agency to pay the collections agency the storage fees they racked up due to neglegence. I've offered to pay the towing company the $200 I was initially quoted at prior to this but was declined.

Had I received the paperwork in a timely manner as stated in subsection 11 of 257.252a, I could have fought the initial fees and be done with it. However, the police didn't follow procedure and neither did the judge when I actually petitioned. As the hearing was dismissed. 257.252f has only four possible outcomes (or combinations of them) and dismissal is not one of them.


So again, I have no idea what to do.
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Old 06-02-2006, 09:17 AM
Mr. Knowitall Mr. Knowitall is offline
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Default Re: Negligent Police Agency
I still read subsection 11 as applying only when the police have taken the vehicle into custody. That's the way the statute is phrased. It's "after taking" not "after an abandoned vehicle is taken".

If you think the trial court made a bad ruling, you should consider appealing.
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Old 06-02-2006, 09:55 AM
clif clif is offline
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Default Re: Negligent Police Agency
Hmmm I see what you mean. It just seems a bit redundant to have almost the exact same thing (worded slightly different) in 5a.

One of the few lawyers I managed to squeeze any info out of told me that I couldn't appeal because it was dismissed. They might have just been trying to get me to go somewhere else, as I don't know too much of the various legal processes.

If that is still an option, what can I do about the creditor? Should I pay the enormous fee and then fight or maybe write them a letter about what is going on?

Thanks.
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Old 06-02-2006, 10:03 AM
Mr. Knowitall Mr. Knowitall is offline
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Default Re: Negligent Police Agency
A collection agency would verify, upon your demand, that the amount it is claiming is accurate (according to the towing company / impound yard), but that probably wouldn't do you any good as the amount is probably what they are billing. Perhaps you can negotiate a reduction in the amount.
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