Fun with Repos

Lienholders no longer have to pay for parking tickets in Nassau County

Posted on Feb 14, 2021

Lienholders no longer have to pay for parking tickets in Nassau County

For many years, Nassau County has seized cars as a way to make drivers clear up old parking tickets. If the tickets were not paid, the County  would dispose of the vehicle. If a lienholder or lessor wished to recover a seized vehicle, Nassau County required payment of not just the tickets on the seized car, but also all tickets on other cars in which the lienholder or lessor had an interest. The practice of holding a car hostage for tickets charged to totally different cars (known as cross-collateralization) led to confusion and unfair overcharging to lienholders and lessors who had no other...

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Recovering vehicles from the NYPD

Posted on Feb 14, 2021

Recovering vehicles from the NYPD

The NYC police department (NYPD) seizes more vehicles than any other agency in the country. The NYPD has been sued many times over the years and it has used the lessons learned from those lawsuits to refine its seizure and impound practices to the point where the NYPD has very specific and orderly procedures for handling lien/lease holder requests to recover impounded vehicles.   To lien/lease holders dealing with the NYPD for the first time, the system may seem like an unnavigable labyrinth.  Once you understand it, however, the NYPD process reveals itself to be highly organized and a...

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Six most important changes in garage lien laws in 2021

Posted on Feb 14, 2021

Six most important changes in garage lien laws in 2021

2021 brought many changes in garage impounds Here are the six most important developments that benefit lien/leaseholders… Elimination of abusive storage fee tactics The worst abuse, the secret lien for storage, has met its demise.  For years garages contended that they had no obligation to send notice of accruing storage fees to lienholders/lessors. Garages would pile up storage fees in secret. By the time the lienholder learned of the situation, fees were often $10,000 or more. The courts now explicitly reject this abusive tactic holding that storage fees cannot be charged to a...

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Auto finance alert: NJ garages

Posted on Nov 6, 2016

Auto finance alert: NJ garages

Are you losing money to garage keeper liens in New Jersey? (You should not be) The law in New Jersey is that lien rights in vehicles are determined on a first in time basis. This means that a garage keeper lien will be valid against an auto finance lien only if the garage keeper lien arose before the auto finance lien was recorded on the vehicle title. The New Jersey statute which sets this rule is N.J.S.A. 2A:44-21 and it specifically states that a garage keeper’s lien shall not be superior to, nor affect a lien, title or interest of a person held by virtue of a prior conditional sale...

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A must read for leasing companies

Posted on Jan 7, 2014

A must read for leasing companies

Important new case means better protection for you Does the idea that someone could transfer your car to someone else without your consent seem wrong. For years, that is exactly what lessees have been doing to secure payment for garage repairs; they allow the garage to put a lien on the vehicle, without the knowledge of the leasing company, the titled owner. Often, unscrupulous garages conceal the car and pile on thousands in storage fees, effectively holding the car hostage until the titled owner pays off the inflated lien. Although New York Law has always protected leasing companies from...

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Repossession Risks

Posted on Oct 8, 2013

Repossession Risks

Interlocks and impounds: understanding the risks Suppose a finance or lease customer calls and advises you that his car has been impounded by police in New York as the result of a charge of Driving While Under the Influence (DUI). The customer states that he can get the car back if you allow him to install an interlock on the car. Should you go along and allow the interlock. An interlock ignition device interlock is a mechanism that prevents a vehicle from being started without first determining from a breath sample that the driver’s blood alcohol level does not exceed the lawful...

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