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I have a question for our resident lawyers


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My buddy and I were golfing this weekend and he told me about something that didn't sound right to me. I know we have some laywers here so I wanted to ask. He sold a junk car in 2002 to a junkyard in California. Last week he got a bill from a collection agency stating he owed nearly 1000 dollars in towing and storage fees for said car. He told them he sold that car and signed the title over in 2002 before deploying and they said it didn't matter. He was still responsible. It's now with a collection agency and he's at a loss. He said he wasn't going to pay anything and was willing to let it sit on his credit. Any advise? How can he be held liable for something he sold 3 years ago?

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I am a lawyer. If he did indeed tranfer full title over to another person or entity then he should be clear of liability.

 

A collection agency will collect from anybody so of course they said it did not matter. He should watch his credit report and notify them that that particular item is in dispute.

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It wasn't incurred prior to his selling the car. The excuse he's getting is that he was the last "registered owner" of the car and thusly that's why he's being charged. He told me he thinks the car was sold to some "illegal's" in the Oceanside/ Camp Pendleton area and therefore never registered. Not sure about that though. All the charges came after he sold the car though.

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I had this happen to me, of sorts. A car I sold to someone was involved in an accident and was at a garage and they were trying to get money from me because I was the last "registered owner." I told them I sold it and that was that. If you have any documentation that you sold it (Bill of Sale), fax it to the collection agency and tell them to talk to the junkyard.

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It wasn't incurred prior to his  selling the car. The excuse he's getting is that he was the last "registered owner" of the car and thusly that's why he's being charged. He told me he thinks the car was sold to some "illegal's" in the Oceanside/ Camp Pendleton area and therefore never registered. Not sure about that though. All the charges came after he sold the car though.

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If he transferred title on the car, he's not liable for anything after title was transferred. Period. (The sole exceptions might be under any applicable Lemon Laws...but towing and storage aren't even remotely under that). He should immediately dispute that with ALL THREE credit reporting agencies...and, if he can, provide proof of the transfer of title to the collection agency.

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My buddy and I were golfing this weekend and he told me about something that didn't sound right to me. I know we have some laywers here so I wanted to ask. He sold a junk car in 2002 to a junkyard in California. Last week he got a bill from a collection agency stating he owed nearly 1000 dollars in towing and storage fees for said car. He told them he sold that car and signed the title over in 2002 before deploying and they said it didn't matter. He was still responsible. It's now with a collection agency and he's at a loss. He said he wasn't going to pay anything and was willing to let it sit on his credit. Any advise? How can he be held liable for something he sold 3 years ago?

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Maybe Buddy isn't telling you the whole story... :blink:

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Above all.... telll your buddy to be careful about NOT giving any hints that he is in the military.

 

Creditors & credit agencies LOVE military because they have a much higher probability of getting something. The conversation goes something like this: "We're going to call your Commanding Officer blah blah blah Commanding Officer blah blah blah Commanding Officer blah blah blah" Before you know it, you're in hot water that civilians just don't understand.

 

It's a great system when the member is truly screwing some creditor, but it sucks when your falsely accused.

 

You probably already knew this.

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California has a fairly extensive, protective Bill of Sale that seems to effect a full transfer of liability upon sale. You can find it here:

 

http://www.dmv.ca.gov/forms/reg/reg135.htm

 

Hopefully your buddy has a signed copy of one of these laying around. If so, he should be able to take care of this with a couple of strongly-worded letters (include copies of the Bill of Sale with each letter).

 

Hope this helps.

 

CT

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