Lawyers often speak as if they know everything, but this is not true. I’ve certainly met enough people who have been given inaccurate to grossly inaccurate advice regarding contested divorces and Family Court cases. But this article has to do with the following issue: IF a leased or financed vehicle (automobile, motorcycle, scooter, boat, etc.) is behind on payments, can the vehicle be seized if found on a homeowner’s property? A few years ago, a young woman (she was not a lawyer) told me that the answer was NO. But tonight (Jan. 18, 2016), I confirmed with an expert who has worked for a private asset recovery company for over 13 years (in downstate NY) that the answer is YES.
I work in the area of debt collection, helping both individuals and businesses collect on their debts (pre-judgment and post-judgment enforcement). But the information that this asset recovery specialist told me tonight, I definitely did not know. He works for a private company, not the Sheriff’s office of either Nassau or Suffolk County and he does not work for any of the Marshal’s offices in NYC. Those offices might follow different policies. Once again, the information in this Article is accurate as of JAN. 18, 2016.
First, if a leased or financed vehicle is stored in a garage that is attached to the house, the asset recovery person cannot break open the lock to the garage door. But if the garage door is UNlocked, the door can be opened and the vehicle seized. If the garage door is open altogether, YES the vehicle can be seized.
Second, if the leased or financed vehicle is stored in a stand-alone garage (not attached to the house), the vehicle cannot be seized if the garage is enclosed by a fence with a lock that is properly engaged. But if the fence doesn’t have a lock on it or if the lock is not engaged properly, the asset vehicle specialist can open the fence. Then once that person reaches the garage door, the same restrictions from the immediate preceding paragraph above remain in effect.
**** All attempts by a vehicle seizure specialist to recover a vehicle are governed by the ‘breach of peace’ regulations (probably a part of the NY General Obligations Law (‘GOL’) or the NYCRR, but I didn’t have the time to locate the exact statute). A privately-hired vehicle seizure expert cannot call the police for assistance for merely the recovery of a vehicle. In addition, if the vehicle’s owner (or person leasing the vehicle) creates a ‘breach of the peace’ by getting in or on the vehicle and refusing to get off/out of the vehicle or lies in the street to block the flatbed/tow truck, etc., the vehicle seizure person I spoke with today said that he would have to stop immediately. The key point is that there cannot be an ‘altercation’ involved when seizing a vehicle.
Third, there are no time restrictions on the time of day that a vehicle can be seized. Unlike the laws that prevent process servers in New York State from serving process on a Sunday (or a Saturday if the person to be served is known to observe Saturdays as holy time – see NY Gen. Business Law Secs. 11 and 13), a leased or financed vehicle that is behind on payments can be seized in the dead of the night. I specifically asked if a vehicle can be seized at 4 AM and the person I spoke with said YES. (Getting back to process servers, on the days that they serve papers, they must serve during ‘reasonable times’ which generally means no earlier than 7 AM and no later than 9 PM). A process server definitely cannot serve process at 11 PM, midnight or any time after 8 PM until 7 AM.
Fourth (getting back to vehicle seizure), in New York City there are further restrictions that all private vehicle seizure companies must adhere to. If the City of New York has placed a boot on the car for unpaid parking tickets (or moving violations), a private seizure company cannot seize the vehicle, period. But if the car owner (or Lease holder) has, on his/her own, put a boot on a vehicle that is behind on payments, that vehicle can definitely be seized. Since the vehicle cannot be damaged during the seizure process, the vehicle seizure expert I spoke with said that a flatbed or ‘tow dolly’ must be used to take the vehicle away.
Fifth, in New York City, the vehicle seizure expert can enter the homeowner’s driveway. But the expert seeking to seize the vehicle cannot step beyond the ‘imaginary line’ that is marked by the mailbox, assuming the property has a mailbox that is closer to the sidewalk than the ones generally attached to the house’s outer wall. Also, in New York City only, the electric meter that is generally found on the side of a typical home creates another ‘imaginary line’ that the vehicle seizure expert cannot go past in order to recover a vehicle.
Sixth, after a vehicle is seized, the owner (or Leaseholder) has the right to pay off the unpaid payments (I’ve never seen an agreement for a financed or leased vehicle that has an ‘acceleration clause’ like the typical Mortgage and Note for a house/co-op/condo has). If the unpaid payments that led to the seizure of the financed/leased vehicle are paid even 5 minutes before that vehicle is auctioned off, the owner (or Leaseholder) can recover the vehicle itself.
I also thought that leased vehicles that were seized for non-payment were normally not auctioned off, but the vehicle seizure expert I spoke with said that leased vehicles that are seized will be auctioned off as well.
Seventh (and lastly), some banks (‘lienholders’) will honor a self-imposed moratorium from seizing vehicles that are behind on their payments, but of course those banks will never share with the general public when and for how long these moratorium(s) is/are. When the person I spoke with said this, I thought of landlord-tenant law and the moratorium (no evictions carried out) that the Sheriffs on Long Island and the Marshals in NYC honor from approx. Dec. 15 until Dec. 31 of each year. This moratorium was enacted after a family with children, from several decades ago, was shown on TV having no place to live after they were evicted a few days before Christmas. Nowadays there are generally no evictions that take place starting right after Dec. 15 of each year.
I hope that this information helps someone out! My email address is HenryLungPC@gmail.com and my address is 92 Willis Av., Mineola, NY 11501. Apart from the commentary that I’ve injected in this article, the remaining information was taken from this expert who has worked for a private vehicle seizure company, on Long Island, for the past 13 years. I first asked him this information in early Dec. (2015) and I confirmed all these details again with him today.
The following is the standard disclaimer language that you’ll find on most lawyers’ websites: the information above was compiled for informational purposes only and should not be considered legal advice. I (Henry Lung) make no representations or warranties regarding any of the information contained in this Article. I, Henry Lung, am disclaiming any responsibility and liability in connection with any actions taken (or not taken) based upon the reader’s reliance on the content of this Article. Lastly, by providing information in this manner, I (Henry Lung) do not intend to create a lawyer-client relationship of any kind with the reader. The only way that you, the reader, can become a client is by way of written agreement signed by both you and your attorney, whether your lawyer is Henry Lung or someone else.
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