Car Repo Question

[MTNMM23]

Jurisdiction

Maryland

Hello, I am hoping someone can help answer my car repo question.
I had my car recovered by a tow company after the order was sent out from my Lienholder due to missing payments. After getting funds together, I settled up with the bank and was told they sent the release, and to go get the car from the tow company.
I arrived at the tow company, inspected the car , signed the release receipt and liability paperwork. It was a fairly quick and simple process.
About 2 hours later i start getting harassed with calls from the tow company because they "made a mistake and forgot to collect the towing and storage fees." I was never even asked for the fees. No mention of it when i went to get the car.

Here's my question , am I obligated to pay them now that they've already released the car to me? What happens, can they take the car again? I have the paperwork signed by the tow company and signed by me, that states the car was released to me. The lienholder (who is the only other party with rights to the car?) is now out of the equation since my debt is settled with them. Can they put me in collections for this? Take me to court?
If the paperwork releases the liability from the tow company for any damages, shouldn't it work vice versa as well by releasing me from liability? After all, they did sign the paper same as i did and they did release the car to me without requesting payment. Does the bank now get involved again?
Please help!

 

[adjusterjack]

Let me get this straight:

1 - You paid the bank up to date.
2 - The bank reinstated your loan.
3 - The bank ordered the towing company to release your car to you.
4 - When you picked up the car you were given paperwork acknowledging that the towing company released the car to you.

If all that is correct so far, the next question is the important one.

5 - Is there anything anywhere on any of that paperwork showing a charge for towing and storage?

If the answer is no, then you are free to tell the towing company that your car was released to you at no charge and you have the paperwork to prove it.

Whether the towing company backs off is anybody's guess.

The problem is that your loan contract probably specifies what you pay in the event of default and if that includes towing and storage, the bank might decide to make good with the towing company and then charge it back to you. The bank's advantage is that your car is security for the loan and you'd be back in default again if you didn't reimburse the bank and subject to yet another repo.

So, it's up to you if you want to run a bluff with the towing company and hope nothing happens or just go back in and pay the towing and storage that you would have paid anyway if the bonehead had been awake.

 

[MTNMM23]

Let me get this straight:

1 - You paid the bank up to date.
2 - The bank reinstated your loan.
3 - The bank ordered the towing company to release your car to you.
4 - When you picked up the car you were given paperwork acknowledging that the towing company released the car to you.

If all that is correct so far, the next question is the important one.

5 - Is there anything anywhere on any of that paperwork showing a charge for towing and storage?

If the answer is no, then you are free to tell the towing company that your car was released to you at no charge and you have the paperwork to prove it.

Whether the towing company backs off is anybody's guess.

The problem is that your loan contract probably specifies what you pay in the event of default and if that includes towing and storage, the bank might decide to make good with the towing company and then charge it back to you. The bank's advantage is that your car is security for the loan and you'd be back in default again if you didn't reimburse the bank and subject to yet another repo.

So, it's up to you if you want to run a bluff with the towing company and hope nothing happens or just go back in and pay the towing and storage that you would have paid anyway if the bonehead had been awake.

1-4 is correct
5. The paperwork has about 4 pages, liability release, redemption, etc. There is a "Receipt of redemption" that's lists the charges, storage, etc. It has a total and is signed by both parties. It is a receipt

 

[mightymoose]

If you can't provide proof of payment you are likely on the hook for the fees. You might try to set up a payment plan if you can't afford fees in full.

 

[MTNMM23]

If you can't provide proof of payment you are likely on the hook for the fees. You might try to set up a payment plan if you can't afford fees in full.

So a signed receipt of redemption with the fees would not be proof of payment?

 

[mightymoose]

Are you prepared to go into court and lie about actually making the payment? I hope not.
If you can't produce proof you actually made the payment you have a problem. The tow company might snatch the car back when you aren't looking.

 

[MTNMM23]

I guess this is where I am confused because are you saying I should have something in addition to the receipt?

Are you prepared to go into court and lie about actually making the payment? I hope not.
If you can't produce proof you actually made the payment you have a problem. The tow company might snatch the car back when you aren't looking.

 

[MTNMM23]

Are they legally allowed to take the car again since they aren't a stakeholder? The bank would be the only other party with rights to it?

Are you prepared to go into court and lie about actually making the payment? I hope not.
If you can't produce proof you actually made the payment you have a problem. The tow company might snatch the car back when you aren't looking.

 

[adjusterjack]

Are they legally allowed to take the car again since they aren't a stakeholder? The bank would be the only other party with rights to it?

Do you want to argue those points while your car is being held hostage for a second time, until you pay for both sets of fees?

 

[MTNMM23]

Do you want to argue those points while your car is being held hostage for a second time, until you pay for both sets of fees?

I don't want to argue at all. It was their mistake. I just want to know what I am liable and responsible for now, after the fact, and what actions are next, legally, by them.

 

[mightymoose]

You are responsible for paying the fee regardless of their error. Mistakes happen. Failure to pay will likely lead to you being sued, having the car repossessed, or both.

Consider if you went grocery shopping and the clerk accidentally failed to ring up a bag of Cheetos. Does that mean you don't have to pay for the Cheetos? They are free because of the mistake?
No. Pay for your Cheetos.

 

[MTNMM23]

You are responsible for paying the fee regardless of their error. Mistakes happen. Failure to pay will likely lead to you being sued, having the car repossessed, or both.

Consider if you went grocery shopping and the clerk accidentally failed to ring up a bag of Cheetos. Does that mean you don't have to pay for the Cheetos? They are free because of the mistake?
No. Pay for your Cheetos.

What if the clerk rings the cheetos, for $0, and hands me a receipt, proof of purchase for the cheetos.
That is the closest reference to this situation, not your reference, since I was given a receipt for the redemption of the vehicle. I did not steal the vehicle back or otherwise manipulate the situation in order to obtain it free. I did everything that was asked of me, received my paperwork and went on my way. I was never asked yo pay the fee

 

[mightymoose]

You apparently are being asked now to pay the fee.
Their error is not going to get you off the hook. They WILL sue and you will end up paying more in the long run.

I understand why you think you caught a break and avoided some of the cost, but it won't hold up.

If you could show a canceled check or a charge on your credit card to prove you did pay the fee then you would have something to work with. Without it, when the judge asks you if you paid and the answer is "no, but...." YOU LOSE.

 

[MTNMM23]

You apparently are being asked now to pay the fee.
Their error is not going to get you off the hook. They WILL sue and you will end up paying more in the long run.

I understand why you think you caught a break and avoided some of the cost, but it won't hold up.

If you could show a canceled check or a charge on your credit card to prove you did pay the fee then you would have something to work with. Without it, when the judge asks you if you paid and the answer is "no, but...." YOU LOSE.

They had signs all over the lot that it was cash only, so even if I had paid, i assume that I would have received the same paperwork and receipt.
I would never be able to show a charge or cancelled check anyways.

 

[army judge]

They had signs all over the lot that it was cash only, so even if I had paid, i assume that I would have received the same paperwork and receipt.
I would never be able to show a charge or cancelled check anyways.

You have information, mate.

Now YOU, and YOU alone must choose.

Good luck.