- Can a New York Garage Lien Sale Wipe Out a Perfected Lien?When a lienholder has perfected its lien in a vehicle, the perfected lien is protected against loss to later claims made against the vehicle. Garage lien claims present a quirky problem because garage lien sales are done by self-help. Self-help means that the garage places the vehicle for sale on its own say-so with noContinue reading “Can a New York Garage Lien Sale Wipe Out a Perfected Lien?”
- Appeals Court Rejects Tow Yard Front-loaded Storage FeesTow yards in New York cannot charge storage fees after towing a vehicle for police unless they follow the strict set of rules in New York Lien Law 184. Tow yard overcharging is a persistent problem because tow yards see no downside to pushing the envelope, hoping that lienholder/lessors are unaware of the legal limitsContinue reading “Appeals Court Rejects Tow Yard Front-loaded Storage Fees”
- Leasing companies can save a lot of money by contesting this common garage lien swindleIn New York, leasing companies cannot be made to pay garage lien charges unless they specifically agree to do so. Nevertheless, garages frequently assert liens against leased vehicles hoping that the leasing company is unaware of the law and will just capitulate to the garage’s demand. Leasing companies that identify this swindle can block it,Continue reading “Leasing companies can save a lot of money by contesting this common garage lien swindle”
- Federal Court Puts the Brakes on Gouging for Parking TicketsFor many years, the City of Yonkers deployed a strategy designed to make lease/lienholders pay for the costs of its attempt to collect unpaid parking tickets. Yonkers would boot a vehicle and then call in a private towing company to haul away and hold the vehicle hostage. Yonkers would then send the lease/lienholder a letterContinue reading “Federal Court Puts the Brakes on Gouging for Parking Tickets”
- Lienholders no longer have to pay for parking tickets in Nassau CountyFor 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,Continue reading “Lienholders no longer have to pay for parking tickets in Nassau County”
- Recovering vehicles from the NYPDThe 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 forContinue reading “Recovering vehicles from the NYPD”
- Six most important changes in garage lien laws in 20212021 brought many changes in garage impounds Here are the six most important developments that benefit lien/leaseholders… Elimination of abusive storage fee tacticsThe 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 upContinue reading “Six most important changes in garage lien laws in 2021”
- Auto finance alert: NJ garagesAre 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 lienContinue reading “Auto finance alert: NJ garages”
- A must read for leasing companiesImportant 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 knowledgeContinue reading “A must read for leasing companies”
- Repossession RisksInterlocks 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 toContinue reading “Repossession Risks”
- Beware of fraud resulting from lien release lawNY’s new dealer lien release law exposes lienholders to title fraud On June 17, 2013, NY Vehicle and Traffic Law Section 2121(b) goes into effect. This new law will enable dealers to release vehicle liens without lienholder consent. The law is intended to enable dealers to quickly resell vehicles that come in on trade. (TheContinue reading “Beware of fraud resulting from lien release law”
- Two Tricky Repo IssuesDoes NY law prohibit repossession on weekends? New York Vehicle and Traffic Law (V&T) 425 requires that the repossessing creditor send a notice of repossession to the DMV and the vehicle owner within 24 hours of repossession. DMV offices are closed on Saturdays and Sundays. The most conservative creditor could resolve the problem by notContinue reading “Two Tricky Repo Issues”
- Combating Title Washing, Understanding the BFP DefenseTitle washing means the removal of a lien by fraud. Often, by the time the fraud is discovered, the car has been resold to a buyer who claims to be a “BFP”. BFP means bonafide purchaser. A buyer can only be a BFP if he had no knowledge that the lien was removed by fraud.Continue reading “Combating Title Washing, Understanding the BFP Defense”
- Warning: Do not obtain “Repo Titles” on vehicles that are impoundedSeveral reliable sources indicate that The New York State Department of Motor Vehicles (“DMV”) may be beginning an investigation of lienholders who are applying for “repo” titles in situations where the lienholder does not actually possess the vehicle. The DMV is focused on lienholders who have been using “repo” titles in order to recover vehiclesContinue reading “Warning: Do not obtain “Repo Titles” on vehicles that are impounded”
- Lienholders and NYC parking ticketsNew York City has a parking enforcement unit that authorizes the Sheriff or City Marshal to seize vehicles for unpaid parking tickets. The unpaid parking tickets are treated as a money judgment against the vehicle owner. Under Article 52 of the CPLR, the City is entitled to enforce the judgment by selling the vehicle. FollowingContinue reading “Lienholders and NYC parking tickets”
Rudolph J. Meola, Attorney/Principal
Rudy is a graduate of Albany Law School and he was admitted to the New York State Bar in 1992. He earned a B.A. in History from Hamilton College.
Rudy is a frequent lecturer on automotive finance related topics including combating title fraud, stopping garage lien abuses and creditor strategies for efficient vehicle recovery.
Rudy enjoys saber fencing, weightlifting, and creative writing.
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