Fun with Repos

Auto finance alert

Posted on Nov 6, 2016

Auto finance alert

Issue #17, September 2016 Are you losing money to garage keeper liens in New Jersey? (You shouldn’t 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 lien arose before the auto finance lien was recorded on the vehicle title. The New Jersey statute which sets this rule is N.J.S.A. 2A:44-21 and it specifically states that a garage keeper’s lien “shall not be superior to, nor affect a lien, title or interest of a person held by virtue of a...

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Tune up your impound recoveries

Posted on Aug 20, 2015

Tune up your impound recoveries

Issue #16, August 2015 Beware of Florida storage lien fraud There is a scam going on in Florida where the Florida warehouse lien law is being used to wash titles. The lienholder receives a notice saying that a vehicle has been held in a warehouse and will be sold unless the fees are paid. These fees are typically only a few thousand dollars (so the problem does not seem severe). When the lienholder calls the warehouse company to make arrangements to pay the fees and pick up the vehicle, the lienholder is told that the customer has already paid the fees and redeemed the vehicle. The...

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Court decisions clarify garage lien laws

Posted on Apr 27, 2015

Court decisions clarify garage lien laws

Issue #15, April 2015 AHFC v. E&R Auto On January 30, 2015 a court hearing was held to determine if a Bronx garage had a valid garage lien for $9,000 in repairs on a 2013 Honda Accord. The garage appeared to have all of its paperwork in order — a repair authorization signed by the owner and invoices for parts and repairs. The garage also sought $9,000 in storage fees for a total garage lien of $18,000. The garage had offered to reduce its storage fee to $5,000 giving the lienholder the opportunity to recover its collateral for $14,000. The lienholder was suspicious, however, because the...

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Nassau County update

Posted on Nov 14, 2014

Nassau County update

Issue #14, November 2014 Now that we are four months into Nassau County’s new DWI forfeiture, program the picture of what is going on is a bit clearer. Nassau’s program has three distinct aspects: seizure, lawsuit and forfeiture. Seizure Vehicles are seized immediately upon arrest and impounded subject to reasonable storage fees. Before July 3, 2014, the County did not have its storage facility operable so the cars were released — but this has changed. Now all cars are seized and held. (Pitfall to avoid: excessive storage fees accumulating if a car remains unclaimed.) As part of the seizure,...

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Nassau County to resume DUI seizures and forfeitures

Posted on Apr 29, 2014

Nassau County to resume DUI seizures and forfeitures

Issue #13, April 2014 From 2005 to 2008, Nassau County operated the most aggressive DUI forfeiture program in New York State, seizing approximately 200 vehicles per week. The County stopped forfeiting vehicles in 2008 because a change in leadership brought a different philosophy which limited forfeiture to only felony cases. Now, there has been another management change in the County Attorney’s office and the philosophy has swung back towards the 2005 model, with a few adjustments. As a result the County is about to launch the most aggressive DUI seizure and forfeiture program known to date....

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A must read for leasing companies

Posted on Jan 7, 2014

A must read for leasing companies

Issue #12, January 2014 Important 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 knowledge of the leasing company, the titled owner. Often, unscrupulous garages conceal the car and pile on thousands in storage fees, effectively holding the car hostage until the titled owner pays off the inflated lien. Although New York Law has always protected...

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