To recover a vehicle that has been impounded by the NYPD, a lienholder must present a title in the lienholder’s name. The NYPD will not accept any title that is illegally obtained as doing so would make the police complicit in illegal action. There are only two lawful ways for a lienholder to obtain title: 1) with consent of the customer; or 2) by court order/administrative process.
Obtaining a “repo title” is not acceptable because, to obtain a repo title, the lienholder must swear that the lienholder has repossessed the vehicle, meaning that the lienholder has physical possession and control. However, with NYPD impounds, the lienholder does not have possession and control, because the NYPD does, making that claim a blatant falsehood. Making a blatant falsehood to a government agency, such as a motor vehicle department, is a crime. In short, a repo title obtained when the NYPD holds the vehicle is a false document no matter what state the document is obtained from.
For example, in New York, the MV–950 form requires the lienholder to swear that it has repossessed the vehicle. It is evidently fraudulent for a lienholder to sign this form where the lienholder does not have possession because the vehicle is in police impound. Submission of a knowingly false document to a public official can be punishable as a class E felony under Vehicle and Traffic Law 426 and Penal Law 175.35.
Likewise, in Indiana, a lienholder seeking a repo title must sign BMV form 39738 which requires the lienholder to swear that the vehicle “has been lawfully repossessed” and that the lienholder “has acquired ownership rights to the property.” Where the lienholder knows that it has done neither of these things, obviously because the vehicle is in the NYPD impound, signing that form is a blatant falsehood. Submitting falsified forms to a government agency can be punishable as a crime under Indiana statutes.
The same holds true in Pennsylvania where, in order for a lienholder to acquire a repo title, the lienholder must sign form MV-217A which again requires the statement that the lienholder “has repossessed” the vehicle and thereby controls the unit. Where the lienholder knows that this is false, because the NYPD holds possession and control, executing such form is a blatant falsehood. Submission of a knowingly false form to a government agency can be punishable as a crime under Pennsylvania Statute, Title 18, Chapter 49, Section 4904.
The bottom line is that “repo” titles should never be obtained where the lienholder has not actually taken possession of the vehicle. There is no such thing as a “paper repo.” The notion that it is ok for a lienholder to cut corners in violation of law to recover a vehicle is indefensible.
When a title is needed in order to recover a vehicle from the NYPD impound, one of the two legal methods must be used, and the most reliable method is to have a New York licensed attorney with an office in New York obtain a New York Court Order authorizing DMV to issue title.
A final related point is that lienholders must never estimate mileage when applying for a title. New York law aimed at odometer tampering requires that mileage can be reported only after physical inspection of the odometer. DMV has specifically confirmed that mileage may only be reported when the affiant confirms that he has physically inspected the odometer. Where the actual mileage cannot be obtained by physical inspection (such as where the car is held in police impound) the mileage must be reported as “0000” or “not actual mileage” and then corrected once the vehicle is recovered and the odometer is read. The correction requires submission of MV-103 and MV-82 forms.
Lienholders should immediately review their procedures to make sure that “repo” titles are not being obtained on impounded vehicles. If a lienholder discovers that it has inadvertently obtained a suspect “repo” title, there is a process for correcting the improper title that should be followed.