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Stolen vehicle found, considered abandoned. They want me to pay $7100 in impound fees

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dmac1990

Junior Member
What is the name of your state (only U.S. law)? Michigan

Roughly a year and a half ago my car was stolen in the late hours of the night or early hours of the morning from a city about 25 minutes from Detroit. I immediately filed a police report for the stolen vehicle with the police department of the city it was stolen in. Now after a year and a half I have received a letter in the mail saying my car was found only 20 days after it was stolen and was declared an abandoned vehicle and has been sitting in an impound lot ever since. The notice is telling me that it will be going to auction soon and if the profit from the car doesn't pay the impound fee then I am liable to pay the difference of which the total is $7100!!!!

I am completely dumbfounded... I have never received any other indication that my car was found. I went to the police department where I filed the report for my stolen car and received a printout of it for my records. The officer said that they should have been contacted by the company that impounded the car or such and such and that I should have been notified thereafter. This obviously never happened.

I wen't down to the impound lot to check out the car, I was told this is the first thing I should do. It is completely totaled. Stripped for parts and no wheels, just completely trashed. It is not worth the $7100 they want for all the fees of it just sitting there for a year and a half. I should mention at this point that the place that has impounded my car is extremely shady and sketchy, with reviews on the internet seeming to align with my suspicion. For example, they do not take credit card or checks and will only accept cash. There is bulletproof glass between the customer and whoever is behind the counter and to compound on their sketchiness their bulletproof glass is in front of a one way mirror. I cannot see who I am talking to at all and there seems to be no accountability.

This is where I get to my options. They told me at the impound lot that I could pay them something like $100 to transfer over the title to the car and that would be the end of all my problems otherwise the state will eventually come after me or something or another. My other option is that I can pay something around $70 to schedule a hearing with a judge and contend the fees. I'm just not certain how much of the $7100 I can contend. I'm just out of college, don't have a job yet, and am barely making enough to make my monthly student loan payments. I'm terrified that if I go to court to contend the charges I might still have to pay some obscene amount of money (because lets face it, there's something shady going on and if anyone gets boned it's gonna be me.) I'm also afraid that paying the $100 to the impound yard isn't a legal and legitimate option, again I don't know the law and wouldn't be surprised if they're just trying to bend me over for more money. What assurances do I have that after I pay the $100 the state doesn't come after me anyway.

Someone please help I'm desperate.
 


xylene

Senior Member
It's a shake down. Tell them to auction the car and go to double hockey sticks town.

http://www.legislature.mi.gov/%28S%28b4f0cfa1ilqvfejc0bfzjk55%29%29/documents/mcl/pdf/mcl-300-1949-II-SPECIAL-ANTI-THEFT-LAWS.pdf
 

Zigner

Senior Member, Non-Attorney
Whoa there - they gave you a perfectly reasonable "out" to this whole matter. Pay the $100 and you're done. Just make sure you receive documentation reflecting this.
 

LdiJ

Senior Member
Whoa there - they gave you a perfectly reasonable "out" to this whole matter. Pay the $100 and you're done. Just make sure you receive documentation reflecting this.
Did you read the previous response and the link it gave?
 

Zigner

Senior Member, Non-Attorney
It's a shake down. Tell them to auction the car and go to double hockey sticks town.

http://www.legislature.mi.gov/%28S%28b4f0cfa1ilqvfejc0bfzjk55%29%29/documents/mcl/pdf/mcl-300-1949-II-SPECIAL-ANTI-THEFT-LAWS.pdf
Your link wouldn't work for me, but I googled teh "Special Anti Theft Laws" in MI.

Nothing jumped out at me that leads me to believe this is some sort of shakedown or that the yard is doing anything technically wrong. I'm sure it's in there, or you wouldn't have posted it. Can you point out what portion of that cited information you are basing your opinion on? I believe this will help the OP to make a rational argument.
 

xylene

Senior Member
The notice is deficient and even if it was legit abandoned the fee cap is $1000 Section 257.252i
 

BL

Senior Member
I agree if theft was/is covered under your ins. file a claim. Don't pay these knuckleheads a cent. I had a car stolen and burnt up. The place the police had it towed to wanted me to pay a tow fee and get it off the lot. I took a screw driver to get my plates off and they said not without a payment. I went to that local PD and they called them said release the plates .

I sued the bad guys in court and got my money back where I bought it from.
 

LdiJ

Senior Member
We don't know that for sure...

Thanks, that is a good cite for the OP. Now, if he can get away with paying only $100 to get out of this, it still might be the best bet.
I think its fairly likely that the notice was deficient. A company that tries to scam someone out of 7100.00 when they know that the law caps things at 1000.00 is not operating honestly. I also agree with FlyingRon that its the insurance company's problem, not the OP's.
 

Zigner

Senior Member, Non-Attorney
I think its fairly likely that the notice was deficient. A company that tries to scam someone out of 7100.00 when they know that the law caps things at 1000.00 is not operating honestly. I also agree with FlyingRon that its the insurance company's problem, not the OP's.
Fair enough :)
 

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