When and How Long Can a Towing Company Keep an Unpaid Vehicle for Storage?

When a towing company holds your vehicle due to unpaid storage fees, the situation can become quite complex and stressful. It's important to understand the legal process and timelines involved.

Legality and Process

Towing companies have the legal right to keep an unclaimed or unpaid vehicle for storage fees. If the fees remain unpaid, the towing company will proceed with placing a lien on the vehicle. This means they legally claim the vehicle and eventually sell it at an auction to recover their costs. The towing company is required to send notices to the registered and legal owners about the vehicle's status and the intention to place a lien.

Timelines

The length of time a towing company can hold a vehicle varies based on the value of the car. Vehicles with less equity are typically sold sooner, as they won't bring as much at an auction or at a scrap yard. Conversely, more valuable vehicles may remain in storage longer to allow for payment or repossession.

In California, USA, the process can be particularly expedited. If you are behind on your payments, the legal owner may take action to repossess the car from the impound yard. To retrieve the vehicle, you would need to pay all outstanding fees and catch up on your payments. If the storage period exceeds 30 days, the towing company may claim title, allowing them to sell the vehicle without the owners' consent.

What Happens If Storage Fees Continue Unpaid?

The consequences of unpaid storage fees can be severe. Once the towing company has given notice and the payment is still not made, they can increase the urgency of the situation. The storage fees are based on a daily rate, meaning the amount keeps increasing with each passing day. This creates a sense of urgency for the vehicle owner to take action.

To mitigate these risks, it is advisable to inform your bank as soon as you fall behind on payments. Banks can often work with you to settle debts and avoid more serious actions by the towing company.

Conclusion

Understanding the legal process and timelines is crucial when dealing with unpaid storage fees. Towing companies have specific protocols to recover their costs, and they are entitled to keep the vehicle until the fees are paid. Therefore, it's important to stay informed and take proactive steps to prevent further complications.

For best practices, always ensure timely payments, communicate effectively with banks and towing companies, and closely monitor your vehicle's status. If you're finding it difficult to pay, consider reaching out for financial help or exploring options to settle your debt.

Keywords: towing company, unpaid storage fees, lien sale