A MAN’S car was sold without his knowledge even though he held the title – as a state’s lenient laws around towing brutally worked against him.
Chris Costa, a prominent businessman in a major US city, recently had his 2021 Honda CR-V towed from a private lot.
A man was forced to use his position as a major real estate broker to retrieve his car after it was sold without his knowledge[/caption]
His Honda CR-V was towed and then sold after it was parked on a private lot[/caption]
According to the Des Moines Register, Costa and his wife were initially unaware of the towing and the charges associated with retrieving the vehicle.
The car, valued at approximately $26,000, had been purchased by the couple for their son, but it was towed after he unknowingly parked it in a prohibited spot on private property.
The report claims that he didn’t have the $380 required at the time to retrieve the towed vehicle, which covered towing and storage charges.
As a result, he attempted to gather the money on his own without involving his parents.
However, due to the towing laws in Iowa, where the family resides, the car was very nearly sold without their knowledge just days later.
In the state, vehicles can be sold after just 10 days if towed from a private property, with proceeds going to the towing company – in this instance, a Des Moines based firm called Crow Tow.
This short window has been criticized for offering little protection to vehicle owners, and required Costa to use his significant influence to retrieve it.
Although the Honda was towed on March 30, Costa, as the title holder, received a certified letter from Crow Tow on April 2 notifying him of the vehicle’s status.
However, Costa and his wife did not retrieve the letter from the post office until April 14, and it did not clearly indicate it was from the towing company.
By the time Costa contacted Crow Tow on April 16, he was informed by the company’s owner, Randy Crow, that the vehicle had already been sold – having been on the tow lot for just two weeks.
Crow Tow had advertised the car for auction on April 17, but Crow claimed it had been sold privately before then.
This meant the company was in violation of Iowa law, which requires such sales to occur through public auction.
Crow Tow, though, had advertised the car on Facebook for an auction scheduled on April 17 – yet Costa was informed on April 16 that the vehicle had already been sold.
This, in turn, raised several questions and concerns about the tow company – which had won big contracts, including one with Polk County to do law enforcement impounds – and their procedures.
To add insult to injury, they also insisted that Costa was not entitled to any proceeds from the car’s sale, as Iowa law allows towing companies to keep all profits after deducting towing, storage and auction fees.
Costa, however, used his position as president of Knapp Properties – a major real estate broker in West Des Moines – to intervene, challenging Crow Tow’s claim that the car had already been sold.
His company also happened to have towing contracts with Crow Tow at several properties, ultimately putting Crow Tow in an awkward spot – leading to them reversing the car’s sale.
Once it was returned to the lot, Costa’s wife was able to pay the $1,540 in fees to recover the vehicle.
FIGHT THE POWER
The experience, though, exposes weaknesses in Iowa’s towing laws, which allow vehicles to be declared abandoned and sold within just 10 days after they’re towed from private property.
Since then, Costa has begun advocating for reforms to make Iowa’s towing laws more consumer-friendly.
He believes many others in less fortunate positions could lose valuable vehicles due to their predatory practices.
Costa said: “I want to make Iowa’s law more consumer friendly, I want citizens to have more of a chance to reclaim their vehicles.”
But despite complaints and proposed reforms, Iowa has not made meaningful changes to its towing laws with lobbyists, including those tied to Crow Tow, successfully able to block reform efforts.
Costa added: “What it’s helped me understand is that there’s a system for the haves and have nots.
“For a relatively minor infraction, there are many, many people who aren’t in my position who would have lost a $26,000 car.”
What to do if your car is towed
Wrongfully or not, retrieving a towed vehicle can be a hassle.
If your vehicle is towed after parking in a “No Parking” zone or other legitimate reason, there are a few steps to take to get it back.
Steps to take when your car is towed:
- Try to figure out why your car was towed. Did you not see a posted “No Parking” sign? Did you miss a car payment? Did you return to a lot where you have unpaid citations? Finding the reason can narrow down the phone numbers to dial.
- Locate the vehicle. Most states, cities, or counties require towing companies to leave some form of contact information via a posted sign or sent by mail.
- Recovery dates and times depend on the company that towed the vehicle, but those times will be posted to the website or can be recited by a representative.
- Pay the fees. Be careful to be as prompt as possible, as some tow yards may charge storage fees by the day.
If you feel your vehicle was wrongfully towed, contesting the action can be done with the following steps:
- Be prompt – many states have a small window of time where it’s acceptable to file a complaint against a company that wrongfully towed the vehicle.
- Gather supporting documents: photos, emails, receipts, police reports, and witness statements if applicable. The more evidence, the better.
- Get familiar with your local laws, as laws for towing companies vary per state.
- Try speaking with the towing company. Sometimes it may have been a simple oversight, and the matter can be resolved quickly.
- Contact the Justice of the Peace in your area, as they may have more insight or resources to help. They are often utilized for towing cases.
- Talk to a lawyer. Many lawyers have free case consultations, and depending on the case, it may be worth it to utilize a lawyer.
Source: Oregon Department of Justice, National General, Rak Law Firm
