Tow company attempting to collect debt

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rogermamie

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I'm wondering if someone can advise me on how to proceed with a situation in which a tow company is attempting to collect a debt on a vehicle which I did not own at the time that it was towed. Here's the history:

1) In July 22 2006 we sold/gave a car to a woman. She signed a release of liability with her name and address.
2) I mailed in the release of liability to the California DMV about 1 week later.
3) Unbenownst to me, the car was abandoned on a freeway in San Jose on July 30th. It was towed. We received notice from the tow company that we were being charged for storage. The car was never registered to the new owner.
4) I requested a certified copy of the release of liability from the California DMV. My request was returned because they did not yet have it on file. I was advised to wait at least a month before making another request in order to ensure that it was recorded in the system.
5) I mailed the tow company a scanned copy of the release of liability and told them that we did not own the vehicle at the time that it was towed. No response.
6) The tow company sent another notice a month later saying that the car was being sold and that we would owe approximately $2000 in storage fees.
7) I sent a second letter with another copy of the release of liability stating that we did not own the vehicle. No response from the tow company. We didn't hear anything at all for over three months. We assumed that the issue had been settled.
8) In January we received a notice from a collection company stating that they were attempting to collect a debt. The notice stated that I had 30 days to dispute the debt.
9) I sent copies of all letters that I had sent to the tow company (certified mail, signed proof of delivery) and stated that I was disputing the debt.
10) The collection company sent me a second notice stating that "due to non response" that they would now be placing a negative item on my credit report.
11) Upon advice from the DMV, we resubmitted the release of liability and I reqested a DMV printout of the ownership history of the vehicle. This was received and clearly shows that the ownship of the vehicle transferred to the new owner on July 22, 2006.
12) I sent both the tow company and collection agency a copy of the DMV ownship printout and requested that they cease attempts to collect.
13) The collection agency received and signed for my letter, but the tow company refused to sign for the letter and returned it. I have received no indication that they will not continue to attempt to collect.

At this point, I am unsure how to proceed. Do I need to go to small claims court? Any advice would be appreciated.

Roger
 
Who was on the title of the car when all this happened?
 
Title on the car

Because the release of liability had not yet been received by the DMV, I was still listed as the owner at the time the car was towed on July 30th. Once the release of liability was recorded by the DMV, the official DMV listing recorded the new owner's name as of July 22, 2006, which is the date we transferred the vehicle, well before it was towed. According to the DMV, that is supposed to be the date that counts as change of ownership, even though the release of liability was received later.

Roger
 
I would sue the tow company.

But that would take a lot of time and money.

Get all your ducks in a row and make a notation to your credit report with all the three major credit reporting agencies.

And tell the collection agency to take you to court. Then you can tell your side.
 
I hadn't thought about requesting that they take me to court, but it makes a lot of sense. It's actually a lot easier if they do it than if I do it. I have a good record of everything that I've done so far in anticipation that it might eventually come to that. I appreciate the advice.

Thanks,
Roger
 
Tow companies are generally very unreasonable.

Good luck.
 
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