Automotive

Towing company charges after new owner did not transfer ownership and crashed the car

  • Last Updated:
  • Jan 27th, 2020 9:06 am
Banned
Apr 5, 2013
5810 posts
3019 upvotes
keenland
koffey wrote: So question:

Something goes to collections regardless of the source, and while it is up to collections to get the money how ever they may proceed to obtain that money, that account is in collections and may affect your credit score quite substantial no? Where as I'm reading this information as to ignore it.





@mikeymike1
for something to be in collections..you have to have a contract to pay and not pay..if you did not enter into a contract with a business..how can you be forced to pay?..the onus is on the business to prove you had a contract to pay ..eg..cellphones bills credit cards etc..even parking somewhere..their signs will usually state something like " by parking here, you agree to terms".
.
..with ops towing..he had no contract to tow..the act states the tow operator has to have a signed or even verbal acknowledgement to pay from the driver..they cant even prove op was there or was driving,,they would have zero case in court.

if op acknowledged debt with tow company, then he opens himself up to another can of worms..he can still fight it but now its just a lot harder and HE will have to fight.

..and I understand that it was a police contract..but that only forces one to pay IF they want their car back..if you dont, the act takes affect and the debt for towing and storage is settled by the loss of the impounded vehicle..no more , regardless of the vehicles worth..the police contract is there to remove non drive-able vehicle whether it be an accident or parking..it does not guarantee payment for the service so in operating that contract, there is good and bad (profit on some loss on others) the tow company is trying to turn a loss into a profit using all means necessary...some dont pay (loss) and others cooperate (like op) and they are happy to extract whatever they can.

..and if it went on my credit score..I would submit the proper paper work to transunion and equifax as is your right and fight it, and have it removed (I have done this in the past and it works)....but I definitely not "just pay up"
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Oct 6, 2010
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cardguy wrote: for something to be in collections..you have to have a contract to pay and not pay..if you did not enter into a contract with a business..how can you be forced to pay?..the onus is on the business to prove you had a contract to pay ..eg..cellphones bills credit cards etc..even parking somewhere..their signs will usually state something like " by parking here, you agree to terms".
.
..with ops towing..he had no contract to tow..the act states the tow operator has to have a signed or even verbal acknowledgement to pay from the driver..they cant even prove op was there or was driving,,they would have zero case in court.

if op acknowledged debt with tow company, then he opens himself up to another can of worms..he can still fight it but now its just a lot harder and HE will have to fight.

..and I understand that it was a police contract..but that only forces one to pay IF they want their car back..if you dont, the act takes affect and the debt for towing and storage is settled by the loss of the impounded vehicle..no more , regardless of the vehicles worth..the police contract id there to remove non drive-able vehicle whether it be an accident or parking..it does not guarantee payment for the service so in operating that contract, there is good and bad (profit on some loss on others) the tow company is trying to turn a loss into a profit using all means necessary...some dont pay (loss) and others cooperate (like op) and they are happy to extract whatever they can.
That's not what I experienced working in an area where unpaid bills were sent to collections. From my experience:

We perform a service for someone and didn't get paid for that service. No agreement signed. Our company has an agreement with a collections agency and they get a percentage of that outstanding bill. So if the bill is say $500, we send that outstanding account to collections and if they recover the full $500, the collections will get $350 of that. If they recover $300, they will get $100. And yes, this will affect the persons credit, so that is why I'm asking because this is not what you are saying.
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Banned
Apr 5, 2013
5810 posts
3019 upvotes
keenland
koffey wrote: That's not what I experienced working in an area where unpaid bills were sent to collections. From my experience:

We perform a service for someone and didn't get paid for that service. No agreement signed. Our company has an agreement with a collections agency and they get a percentage of that outstanding bill. So if the bill is say $500, we send that outstanding account to collections and if they recover the full $500, the collections will get $350 of that. If they recover $300, they will get $100. And yes, this will affect the persons credit, so that is why I'm asking because this is not what you are saying.
in regular business yes..but this falls under towing and storage act which has its own recourse (the vehicle in their possession and future rights to it)..that is their only recourse as stated in the act..also, there are the courts if all else fails, and they can be utilized quite well if your homework is done properly, on both sides of this issue..but from my experience in similar matters..the tow company would lose this one...I would also be sending a letter to the tow company about damages should this matter affect your credit rating
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Jun 12, 2007
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London
koffey wrote: That's not what I experienced working in an area where unpaid bills were sent to collections. From my experience:

We perform a service for someone and didn't get paid for that service. No agreement signed. Our company has an agreement with a collections agency and they get a percentage of that outstanding bill. So if the bill is say $500, we send that outstanding account to collections and if they recover the full $500, the collections will get $350 of that. If they recover $300, they will get $100. And yes, this will affect the persons credit, so that is why I'm asking because this is not what you are saying.
OP would follow the stuff on Ontario.ca in regards to debt collection - wrong person or amount owed is wrong
-send debt company a registered letter saying that you dispute the amount owed and ask that the matter be taken to court.

If the debt collection company contacts you again after they receive the first letter you sent, then you send them a second registered letter
-to: name of debt collection company
- that a registered letter was sent on date wwwe and received on date ccccv detailing that you are disputing the amount owed have asked the matter be taken to court
- that the mr xyz of the company made subsequent contact with you on date ddddd time xxxx in violation of Collection and Debt Settlement Service Act of Ontario
- that a formal complaint is being made to the Ontario Ministry of Government and Consumer Services against the company

Then you would follow the “make a complaint “ instructions on Ontario.ca
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Dec 24, 2009
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Pay the bill.. then torch their place down to the ground
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Apr 16, 2007
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cardguy wrote: for something to be in collections..you have to have a contract to pay and not pay..if you did not enter into a contract with a business..how can you be forced to pay?..the onus is on the business to prove you had a contract to pay ..eg..cellphones bills credit cards etc..even parking somewhere..their signs will usually state something like " by parking here, you agree to terms".
.
..with ops towing..he had no contract to tow..the act states the tow operator has to have a signed or even verbal acknowledgement to pay from the driver..they cant even prove op was there or was driving,,they would have zero case in court.

if op acknowledged debt with tow company, then he opens himself up to another can of worms..he can still fight it but now its just a lot harder and HE will have to fight.

..and I understand that it was a police contract..but that only forces one to pay IF they want their car back..if you dont, the act takes affect and the debt for towing and storage is settled by the loss of the impounded vehicle..no more , regardless of the vehicles worth..the police contract is there to remove non drive-able vehicle whether it be an accident or parking..it does not guarantee payment for the service so in operating that contract, there is good and bad (profit on some loss on others) the tow company is trying to turn a loss into a profit using all means necessary...some dont pay (loss) and others cooperate (like op) and they are happy to extract whatever they can.

..and if it went on my credit score..I would submit the proper paper work to transunion and equifax as is your right and fight it, and have it removed (I have done this in the past and it works)....but I definitely not "just pay up"
In most cases that is correct. But in regards to the content of this thread it is a little different.
Three Acts are involved which are the Highway traffic act(HTA), Repair and Storage Liens Act(RSLA),Consumer Protection Act(CPA).
How this all is different than a consumer agreed contract is that if a person is incapacitated due to an auto accident then the HTA Act allows the police to have the power to remove the damaged vehicle off public roadways by any means, ie: towing.
Even if not incapacitated the police still holds precedence over public roadways to make sure they are always clear from damaged vehicles due to accidents.

As far as reporting it to collections, this should be only done in a timely manner, not prematurely.
Towing companies have like two weeks to notify the vehicle owner of the towing fees from the incident. Not until after a substantial neglect of the notification and a refusal to pay can they then report the lien/unpaid tow bill to collections.
Last edited by mikeymike1 on Jan 25th, 2020 1:26 am, edited 1 time in total.
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Apr 16, 2007
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Anonymous358 wrote: Long story short:
- Sold a car on Kijij, quick $500 as is sale: gave used vehicle information package, took the plates off and signed over ownership portion - did not take buyer info or create bill of sale, yes my mistake.
- About a month later police show up investigating a crash - apparently guy crashed the car but never had it registered in his name. Explained the whole situation and confirmed the car was not stolen, they said all is good and off they went
- Left on a vacation shortly, after i returned i found $1800 bill from towing company with daily charges piled up

- Called police, they can't do anything. Spoke with MTO, they marked the car as sold but that's all they can do. Called towing company but they want to get paid and because the car was registered in my name i'm the one they are after.

So my options are pay, let the bill go to collections, try to take someone to small court.

Anything else i can do here?
They can't or they just 'don't' want to do anything?
During the collision the police should have requested proof of ownership and proof of insurance. If the driver didn't have his pink insurance slip on person he would have been required to supply it for inspection the next day or following day(s). This is normally how it always works.
This guy only showing the "vehicle portion" of the green MTO permit should have been concerning to the police and should have received a ticket for improper plating.
All of this should have been noted, reported and filed by the traffic cop.
Moreover, the plate number that was attached on the car would also have been noted.
You should apply for the motor vehicle collision record and then seek out a lawyer.
The police report will have the investigating cops name and the drivers name as well as all other info that you may need.
https://www.torontopolice.on.ca/records ... eports.php

https://www.torontopolice.on.ca/records-release/
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Deal Addict
Dec 22, 2007
1657 posts
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Mississauga
Probably someone put on stolen plates an ran after the accident so op is one left holding the bag.. see what the report says as it should have the driving info but if that was the case i am sure police would of given op more info. system sucks for autos as until its changed ownership current owner is the owner as far as everyone is concerned
Deal Addict
Aug 28, 2014
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Toronto, ON
A+ Very informative thread. So If I understand correctly, if some **** tows my rusted corolla for some reason, I can tell them to eat shit? Also OP is a liar and a scammer.
Deal Guru
Aug 14, 2007
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Anonymous358 wrote: No i don't have any contact info unfortunately. I have a Kijiji chat arranging a time to come but it's just generic Kijiji email address. I'll see if i can find some free/cheap legal advice services, i'm just concerned that will end up costing me just as much.
Tell the towing lot to go **** themselves as the car was sold and was no longer yours regardless of what they think.
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Nov 2, 2014
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Scarborough, ON
nabiul wrote: A+ Very informative thread. So If I understand correctly, if some **** tows my rusted corolla for some reason, I can tell them to eat shit? Also OP is a liar and a scammer.
This.

Op's story has various holes in it - solid troll thread.
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Jun 11, 2005
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XtremeModder wrote: Tell the towing lot to go **** themselves as the car was sold and was no longer yours regardless of what they think.
But can he? He sold the car true. But the car wasn't transferred into the purchasers name. As far as the cops and the towing yard op is the owner.

What hasn't been posted here is why cant op find out who was involved in the accident. Unless the buyer got in an accident and ran away the cops know who hit who.

Op please comment
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Aug 14, 2007
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antigua1999 wrote: But can he? He sold the car true. But the car wasn't transferred into the purchasers name. As far as the cops and the towing yard op is the owner.

What hasn't been posted here is why cant op find out who was involved in the accident. Unless the buyer got in an accident and ran away the cops know who hit who.

Op please comment
I guess it would be tough. I personally would be telling the person @ that scrap yard (and all of them) to **** right off. He took the plates off of the car. Was this guy driving around with no plates or plates that weren't registered to the car?

I'd stand firm that the car was sold, was not mine, too bad. Tell them straight up because it is no longer your property you will not be picking up the car nor will anything be getting paid.

Maybe, just maybe the insurance company would be able to chime in for him (if he's still with them) stating when insurance was taken off and perhaps why (they may have a record of that phone call) but who knows if they would help.
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Jun 11, 2005
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XtremeModder wrote: I guess it would be tough. I personally would be telling the person @ that scrap yard (and all of them) to **** right off. He took the plates off of the car. Was this guy driving around with no plates or plates that weren't registered to the car?

I'd stand firm that the car was sold, was not mine, too bad. Tell them straight up because it is no longer your property you will not be picking up the car nor will anything be getting paid.

Maybe, just maybe the insurance company would be able to chime in for him (if he's still with them) stating when insurance was taken off and perhaps why (they may have a record of that phone call) but who knows if they would help.
I wouldn't be in op`s situation but if I was I would just pay. In the scheme of life $1800.00 is a lot of money but in this situation it could be money well spent. If the tow yard sends the bill too collections who knows what problems that could cause for future credit including buying a house.
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Aug 14, 2007
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antigua1999 wrote: I wouldn't be in op`s situation but if I was I would just pay. In the scheme of life $1800.00 is a lot of money but in this situation it could be money well spent. If the tow yard sends the bill too collections who knows what problems that could cause for future credit including buying a house.
Understandable, but surely this can be fought. Seems like this guy is getting robbed in part due to a bit of negligence but the fault is on the guy who bought the car and is driving it. Surely insurance was put on that VIN and can be tracked... if not then well I have no idea how else it could be argued unless the guy came forward...

I sold a car the exact same way years and years ago, I guess I got lucky. Mind you I did have paperwork he signed stating car is sold to him as-is, for x amount, etc, etc and he put his own plates on and never had an issue after that.
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Jul 25, 2015
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@cardguy
I Agree with you and I would have fought with the tow company till the end, wouldnt care less if it went to collections but that's because I like these stuff. And I bet you that I wouldn't have paid a penny to them and they will have wasted their time and enjoyed the junk car in their yard.

@Anonymous358
As per the OP he is right too, it's too stressful for him
to go all thru kind of stuff and maybe he doesnt have the time so he choose a different path, by trying to negotiate and forget about this.

Remember people are different, they have different personalities. Some enjoy it and some hate these kind of situations.

Great story though. Lots of lessons.
Newbie
Sep 9, 2019
37 posts
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nabiul wrote: A+ Very informative thread. So If I understand correctly, if some **** tows my rusted corolla for some reason, I can tell them to eat shit? Also OP is a liar and a scammer.
Just remember that if car is registered in your name and you have no proof of sale you will be responsible for the charges. How you go about them was discussed in the thread.

Also, you are an idiot.
Newbie
Sep 9, 2019
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RobertSmalls008 wrote: This.

Op's story has various holes in it - solid troll thread.
I feel like i answered most of the relevant questions, what holes are you referring to?
Newbie
Sep 9, 2019
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antigua1999 wrote: But can he? He sold the car true. But the car wasn't transferred into the purchasers name. As far as the cops and the towing yard op is the owner.

What hasn't been posted here is why cant op find out who was involved in the accident. Unless the buyer got in an accident and ran away the cops know who hit who.


Op please comment
I need to request police records to find out exactly what happened at the scene of the collision. For the time being it doesn't help me with the tow charges, if i end up fighting them then i'll request it as it will be another $135.
Newbie
Sep 9, 2019
37 posts
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l69norm wrote: OP would follow the stuff on Ontario.ca in regards to debt collection - wrong person or amount owed is wrong
-send debt company a registered letter saying that you dispute the amount owed and ask that the matter be taken to court.

If the debt collection company contacts you again after they receive the first letter you sent, then you send them a second registered letter
-to: name of debt collection company
- that a registered letter was sent on date wwwe and received on date ccccv detailing that you are disputing the amount owed have asked the matter be taken to court
- that the mr xyz of the company made subsequent contact with you on date ddddd time xxxx in violation of Collection and Debt Settlement Service Act of Ontario
- that a formal complaint is being made to the Ontario Ministry of Government and Consumer Services against the company

Then you would follow the “make a complaint “ instructions on Ontario.ca
Thanks for this info.

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