debt collection laws california

Do I have to pay the Collection Agency or Debt Collector?

The collection agency said that since the car was under my name when it got towed that it is my responsibility and it’s the California law. The car was sold along time ago, but was still under my name. I sent in the right document (a little late), but it states it wasn’t mine at the time of the towing. They said it’s still falls on me because the title was under my name. They also said if I showed the towing company the paper stating it wasn’t under my name it still wouldn’ t matter. Even if the new owner came and tried to pay for it they couldn’t accept it. Are they telling the truth?

In CA you must notify the DMV within 5 days after selling the vehicle. You do this by submitting the Notice of Transfer and Release of Liability. Until the new owner submits the Transfer of ownership YOU are still responsible. So you are lucky that it was only a towing charge. If it was something more serious like an Auto Accident the other party could come after you because you are on the title.

The best thing to do is send the Collection Agency a Debt Validation Letter. In the letter request proof that it was your vehicle and the amount of the towing charges. If you end up paying it, you could then go after the “owner” in small claims court.

Also, get your name off of the title so this does not happen again.