Can A Tow Company Send You To Collections? Find Out

Many people find it difficult to settle debts or even to pay requisite bills for reasons best known to them. When such a thing happens and with no end in sight, the person or people owed may have no other option than to refer to collection agencies who will see to it that any outstanding debt or levy is paid.

It is worthy of note that sometimes these collection agencies can go to any length and adopt whatever means necessary in order to ensure compliance in terms of money recovery. However, we may have to ask whether a towing company can in reality send you to the collection. So, can a tow company send you to collections?

Yes, a towing company can send you to collections particularly if they find it difficult to get any compliance from you with their terms, despite the fact that you may be in gross violation.

After the expiration of a set period of time, lenders may in fact send unpaid debts to a collection agency for recovery. Once they do this, the collection agency will notify you, which may lead to your account having a negative mark and a drop in credit score too.

Why would a towing company send you to collections?

The most common reason why towing companies send the drivers or owners of cars in their custody to collections is mainly the refusal to pay up whatever money is owed them by the defaulters.

Money owed to the towing companies may be the charges owed by the drivers for getting their vehicles towed and also the money that should be spent for keeping your vehicle in their custody.

You should pay both of these charges because your car could have been at risk depending on the site of the breakdown and secondly, for towing the vehicle out of the way to avoid needless accidents or for repairs.

Can you refuse to be sent to collections by a towing company?

Not exactly, but if you do not want to be sent to collections in the first place, you should have settled every outstanding money you owed them.

If you blatantly refuse to do so, even after the expiration of the stipulated time during which payment should be made, and failed to give any cogent reason for your actions, the company may really not have any options rather than to send you to collections, and if you still refuse to comply, they may take the matter further until you do. After all, some people can be quite obstinate indeed.

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What is the purpose of the collections?

Primarily, the collections are meant to recover any payment or fees that are not paid,  even long after the stipulated time within which one should settle them.

So, the collection agencies will now act as representatives to the towing company, their clients in this case,  in order to assist with the recovery of any money owed.

Do not also forget that once a collection agency is involved, your account is more or less blacklisted and you stand the risk of losing your credit score and your credibility too. So, do all you can to prevent that from happening.

What information does a towing company need to send you to collections?

First and foremost, they need your name in full, the amount owed to the towing company, which you can dispute or seek its verification and also your physical address, in some cases. Despite all these, a debt collector must obey the Fair Debt Collection Practices Act (FDCPA).

Read Also: Can a tow truck get a car out of a garage?

Aside from collections, where else can a towing company take you to?

The towing company has the option of reporting you to the nearest police station as a peaceful means of resolving the issue at stake, and if this move fails, they can take it further by taking you to a court of competent jurisdiction on the matter for further hearing.

What are the requirements needed by the collections?

First, the collection agency as representatives of their client, which in this case is the towing company, will require your name, address and the money owed.

Secondly, their fees have to be paid in full by the towing company and they may also require proof or any paperwork that will show what you owe the towing company and for how long too.

Armed with these documents and information, they can now start adopting means via which they will get your compliance.

In some rare cases, the collection agency may also want to know whether their clients, the towing company is indeed registered to operate by law. Otherwise, they may refuse to get involved altogether

Read Also: Can a Honda Crv tow a U-haul trailer?

FAQ

How long before a tow company can sell your car?

The period a towing company is allowed to keep your car before selling it off at auction varies from place to place, but on a general note, they must not keep your car in their custody for anything longer than about 120 hours or six days. After the expiration of this period of grace, they must prepare for whatever comes next.

What happens if you leave your car in the impound in California?

In most cases, the owner of the car can get his/her personal properties out of the car, though some other impound lots can even release any properties in the impounded car to another person, provided he has a notarized letter from the owner saying it is okay to do so.

However, the owner of the car may still have to prove that they get benefits, are homeless, or qualify for legal aid in order to get their things for free.

On the issue of the impound, the car may remain impounded until such time when the owner or anybody in control of the vehicle gives the impoundment company any proof of identity and an address. Notably, violating an ordinance by parking for more than 72 hours in California attracts serious penalties which may include a hefty fine.

Can a towing company charge whatever they want?

In many of the states in the US, as in many other places, towing is not just an ordinary private enterprise where the tow companies can charge just about whatever they want.

Rather, it is a business whose charges are strictly regulated like all other utility services by the state government. In essence, towing companies cannot charge just what they wish. No, any charges must be in tandem with what the local authorities stipulate.

Who pays for towing the truck after an accident?

You should be aware of the fact that your insurance company may only pay for any towing and storage fees they deem reasonable and not otherwise.

This implies that you must use a towing company whose charges are lenient, have your vehicle taken to either a lot or a repair workshop close to the site of the accident, and also leave it there for no longer than necessary as well. Any deviation from these requirements may translate into their refusal to pay your towing charges and other fees.

Read Also: Can you tow a car without MOT?

What does it cost to release an impounded vehicle?

What you actually pay will depend on the impound location. Despite this consideration, however, the charges can be in the neighbourhood of hundreds or even thousands of dollars. Basically, if the owner of the vehicle fails to collect it promptly, this failure will certainly jerk up the fees. All in  all, you may have to pay the following charges:

• Daily storage fee, which may become more expensive after the first 24 hours.
• After hours gate fee, where such is applicable.
• Lien fees, if applicable.
• Auction fee, also where applicable.

Most of the times, impound lots sell unclaimed cars at a loss to themselves, so they don’t like going there if they can help it really. They usually have to sue the owner of the car for any difference or deficiency, if they auction the car, which makes the entire endeavour very unattractive.

How do people get back their impounded cars?

First, if you want to get your car out of impound, contact the impound company for instructions on the processes involved.

If the impound lot is not known for whatever reasons, you can ask the local police. Lots are obligated by law to release all registered vehicles to their verified owners who show the following paperwork: a current and valid driver’s license, vehicle registration documents, proof of insurance and so on.

However, non registered owners can also claim impounded cars, but in addition, they will require an authorization letter from the owner of the vehicle.

How much does a 30 day impound cost in California?

In such cases, you may be required to pay additional fees that relate to the towing and storage of the vehicle. Basically, you are paying for the time spent. After all, isn’t time said to be money?

Well, you get the proof of that adage here. In addition to any administrative charges, the cost of towing is mostly in the range of 185 dollars for a routine tow. It can be more for any special circumstances or even for larger vehicles and is dependent on one-way tow as well.

How do I get my car out of 30 days hold?

If your vehicle gets impounded under a 30-day hold, you must wait until the expiration of the 30 days before sending any release applications.

However, after the 30 day period has passed, the registered owner of the impounded vehicle must go to the Area Auto Club detectives to obtain a release permit for the vehicle. However, you should note that releases are only given to the registered owner/s.

What happens if you don’t pay the towing company?

If for whatever reasons you fail or refuse to pay either the storage fees or the levied fines, then the towing company reserves the right to file what is called a mechanic’s lien and afterwards, sell your car at auction in order to recoup your bill.

If the money generated at auction is more than your bill, the extra shall be returned to you. If on the other the money generated from the auction cannot settle all your debt, then you, the registered owner of the vehicle, still owe the towing company whatever that balance is, and you must pay up eventually.

Why should you never say to a collection agency?

If you ever get reported by the creditor to the credit bureaus, your strategy simply has to be intrinsically different.

If you mistakenly or deliberately ignore the collection, it is likely to hurt your credit scoreless over the years, and it can also take up to seven years for it to fully fall off your report. Actually, even paying it up can do some damage, particularly if the collection is from a year or two years ago.

What happens if a company sends you to collections?

After a period of the stipulated time, lenders may be compelled to send all unpaid debts to a collection agency for retrieval.

Once this instruction is received, the collection agency will report that your account has gone to collections to the three major credit bureaus, which can lead to a negative mark on your account and possibly a drop in your credit score too. You should prevent this from happening whatever that will mean to you.

Conclusion – Can A Tow Company Send You To Collections

A towing company does your invaluable service, first by towing your car if it should get involved in an accident to either the nearest auto shop for repairs or for storage as the case may be.

They can equally tow stranded vehicles, especially those cars that are parked arbitrarily at the wrong places or positions, or even when you get a sudden unexpected malfunction.

After towing such vehicles, these companies may in some cases maintain the custody of the towed vehicles safely for even very long periods, which is determined by how long you take to claim back your vehicle.

Essentially, therefore, they have rendered you a very invaluable service for which you have to pay them. However, that is not always the case. Well, you are now very aware of the consequences of any breach of agreement, right. So, be warned.