A recent federal lawsuit against the City of New York has led to major changes that directly benefit lienholders, leasing companies, and their customers. The City’s Department of Sanitation (DSNY) has implemented new procedures to ensure that financial institutions and lessors are notified and given a fair opportunity to reclaim or challenge the seizure of vehicles labeled as “abandoned” or “derelict.” These new protections—developed and advanced through legal action spearheaded by Rudy Meola and Nick Duston—represent an important victory for the auto finance and leasing industries, as well as for the consumers whose vehicles are financed through them.
What’s Changing
Until now, when DSNY removed unplated or unattended vehicles under Section 1224(2) of the New York State Vehicle and Traffic Law, lienholders and leasing companies received NO notice before the vehicles were dismantled or disposed of. That meant financial losses and customer frustration were common—and nearly impossible to prevent.
Under the new procedures, DSNY must provide timely notice and an opportunity to respond before taking final action. Specifically, lienholders, lessors, and other interested parties will now receive:
- Direct Notification by Mail or Email including vehicle details, removal date, instructions to reclaim, and applicable fees.
- 10-Day Response Window to either reclaim the vehicle or challenge the removal or charges.
- Virtual Hearings within 72 Hours of any request, with final decisions issued within five business days for rapid resolution.
- Clear Fee Transparency based on vehicle weight, so costs are predictable from the start.
Why It Matters
For lienholders and leasing companies, this reform significantly reduces the financial exposure created by unexpected vehicle losses. It allows organizations to protect collateral, respond quickly to seizure notices, and provide better service to clients whose vehicles may have been wrongfully or prematurely removed.
For customers, it translates to peace of mind—knowing their lender or leasing company now has legal standing and a streamlined process to intervene before a vehicle is destroyed or sold.
The Role of The Meola/Duston Strategy
These changes did not arise on their own. The procedural overhaul was the direct result of strategic litigation and advocacy led by Rudy and Nick, which recognized the widespread harm caused by the old system and successfully pushed for a fair and balanced process.
By ensuring due process and accountability from the City, this outcome marks a meaningful milestone in protecting business and consumer rights alike—setting a new standard for how government agencies handle seized vehicles across New York City.
We are glad to answer any questions you may have.