A recent investigation highlights a troubling aspect of California’s towing and lien sale practices, particularly how they disproportionately affect vulnerable residents. The California Department of Motor Vehicles (DMV) has accumulated over $8 million from the sale of nearly 5,300 vehicles since 2016, a system that seems to be poorly communicated to vehicle owners, many of whom may not even be aware that their cars have been sold.
The article outlines that when a vehicle is towed due to unpaid fees, the towing company can sell it after a designated period, using the proceeds to cover towing and storage costs. The remaining funds, however—potentially substantial in some cases—are sent to the DMV, which does not notify owners about these excess proceeds. State law allows owners three years to claim this surplus before it becomes permanent revenue for the DMV. This process has left many car owners, often those already facing financial hardships, in the dark about their rightful claims.
The political significance of this issue is considerable. With the rising costs associated with towing and storage fees, particularly in urban areas like Los Angeles, many individuals find themselves trapped in a cycle of debt. Reports, including heart-wrenching individual stories, illustrate how individuals struggling with health issues or financial instability may lose their sole means of transportation, or even their homes, through a process they do not fully understand. The lack of automatic notification regarding surplus funds raises questions about transparency and accountability in state governance.
California advocates are already calling for legislative reform to ensure owners are informed about their rights and potential claims. The DMV’s current stance, which places the onus on vehicle owners to navigate this opaque process, may be insufficient as public sentiment grows against what some perceive to be a “money-making scheme.” As scrutiny of these practices intensifies, policymakers may face pressure to re-evaluate these laws, potentially reshaping the landscape of vehicle ownership and lien sales in the state, particularly for its most vulnerable residents. This could not only prompt immediate reform but also set a precedent for similar policies nationwide.
via calmatters.org