Hello- I posted this on another board. Maybe some one here can help me. Thanks in advance for ANY help My fiancé had a collection account from CBE collection agency pop up on his credit report. We have been trying to clear up our reports to buy a house so this coming out of the blue is maddening! Turns out the original creditor is a â??Henryâ??s Wrecking Serviceâ?. My fiancé works in the car industry and his ex-boss let him park an old car on his property for years. My fiancé left to take another job (on so-so terms, not good or bad) and apparently a wrecker service picked up his vehicle without his knowledge, permission, signature, etc. I guess they got his personal info from papers left in the car. They never tried to contact us or anything. Fast forwardâ?¦we see CBE on the credit report. I send them a validation letter, basically saying I want validation, evidence that there is a contractual obligation to pay CBE, and the original creditors name, address, date of last activity. We KNOW that they donâ??t have anything with my fiancéâ??s signature or anything because this is the first we heard of this alleged debt. CBE sends back a letter saying that the wrecker service is their client and a printout from the wrecker service with my fiancéâ??s name, incorrect address, towing fee, collection and interest, storage fee of over $1000, and a â??clericalâ? fee of almost $300. In total, they have sent an invoice for almost $1900!! There is a notation on the form for a â??sale priceâ? of - $175 (I guess they sold the car). By the way, there is NO customer signature, no release, and basically no indication that my fiancée knew anything about this. What should I do next? Is what they sent considered verification? Follow up letter to the CA (CBE)? Letter to CRA? I am just so mad right now!
If it was his car and he abandoned it, he may owe it. There may be limits on what the towing company can collect, set by state law or local ordinances. They may also have had an obligation to notify him the car was towed, using address information from registration records. Check with your state department of motor vehicles.
The State Attorney General can prevent price gouging and abuse. They usually send your complaint and negotiate a settlement. If he owes it, this may be an option. If the car was improperly removed from the property the towing company may be liable for the cost of the vehicle. Some one had to pay for towing services the day it was removed and stored, and they may also be liable.
If the property owner said it was abandoned, they will likely just tow it and recover from the owner if they can. For example, in California, certain towing companies have contracts to tow cars for the state. If the CHP finds one abandoned, they put a sticker on, and call them. State law may require storing the car for 30 days before title can be transferred to the towing company, to allow the vehicle to be reclaimed by the registered owner. There may also be a requirement to notify the registered owner. Of course, "storage charges" are usually trumped up enough that if the towing company gets the car, for any older car they will probably get to keep anything obtained at auction, where it will probably bring a lot less than on any car lot. Recovering any remaining storage charges from the former owner may just be gravy.
