https://www.law.com/njlawjournal/2023/01/12/wheres-my-car-litigation-surges-as-auto-finance-companies-sue-over-towing/
Credit: Bluraz/Adobe StockImpound suits by finance companies appear to be concentrated in the Northeast, but the phenomenon has reached as far as San Antonio, Texas.
January 12, 2023 at 04:14 PM
5 minute read
What You Need to Know
- Local governments are seeing a surge in suits claiming their impounding of vehicles violates the civil rights of banks holding liens.
- Cities and towns that turn ownership of impounded vehicles over to towing companies are accused in the suits of failing to give proper notice to vehicle lenders.
- Yonkers, New York, has brought an appeal of rulings favoring auto lenders to the U.S. Court of Appeals for the Second Circuit.
A growing number of suits is developing around claims by vehicle finance companies that their due process rights are violated when local governments impound motor vehicles.
Long-established case law gives lienholders due-process rights when governments seize cars, but many local governments are facing suits over impound procedures that allegedly violate those rights.
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