Legal Question in Credit and Debt Law in California
I sold a vehicle on February of 2010 that my brother and i owned and the person I sold it to never got it registered to his name (not sure) and got impounded on march 2010. Just last month did I get a letter from a debt collector saying that I needed to pay $2100 in storage fees since I was the current registered owner at the time it got towed or he was going to send my case to the credit bureaus. Worst part about it is that I don�t have a copy of the Release of Liability and I don�t remember when I turned it in. The only thing I have is a text of when I gave the car to him. At this point I don�t know what to do. I don�t want to pay for it since I didn�t own the car when it got towed but I don�t want mine or my brother's credit to be ruined. What can i do?
1 Answer from Attorneys
You should have some other documentation such as a sales receipt, the name of the buyer, proof of payment (i.e. deposit of money in your bank) that you can provide to the debt collector. Send them a letter disputing the debt on monitoring credit report to challenge any incorrect entries. You might need to file a small claims lawsuit against the buyer and/or the debt collector to have a judge sort it out.