This is a general guide and not intended as legal advice.
Abatement
Removal, as a public nuisance, of abandoned, wrecked, dismantled, or inoperative vehicles or vehicle parts from public or private property.
Agreement
The mutual understanding of a statement (oral or written) of an exchange of promises
Assign
To transfer from the original creditor to a debt collection agency for collection
Attorney's Fees
The costs of legal representation paid to an attorney,
Bankruptcy
A federal court process where an individual or organization legally declare its inability or impairment of ability of to pay its creditors; see also Wage Earner Plan
Barred
Prevented; for example, a statute of limitation may bar the collection of an old Lien
Buyer
The person(s) and/or company who is going to become the new registered owner is referred to as the buyer.
Cancel
To delete, remove or make invisible; for example you might seek to withdraw an account in collections
Charges
Any amount added to a debt, such as interest, court costs, attorney's fees, or collection fees
Collateral
Assets that are offered by the consumer to the creditor to secure payment of the debt (see Secured Debt)
Collect
To receive or obtain payment of a debt
Collection Fee
Fee that is received from each payment made to cover the expenses of collecting a debt
Collector
A person who attempts to collect a debt; may be a creditor or a debt collection agency
Compromise
An agreement to settle by concession a dispute of something
Consumer Debt
Debts incurred by an individual for personal, family or household purposes
Contract
A binding agreement between two or more persons that is enforceable by law
Court Costs
Expenses other than attorney's fees associated with the prosecution or defense of a lawsuit
Credibility
Reputation for honesty; the quality of being believable or trustworthy
Credit Record
The credit history and current status of a borrower's credit standing
Credit Report
A summary of a person's financial history supplied by a credit information business like Dun and Bradstreet, Equifax, Experian or TransUnion
Credit Reporting Agency
A business that collects and sells information regarding the creditworthiness of consumers
Credit Score
A numerical expression based on a statistical analysis of a person's credit files, to represent the creditworthiness of that person
Creditor
Any person or business to which a consumer owes money
Debt
A legal obligation to repay money, goods, or services owed by one person to another; for our customers it is an obligation arising from a vehicle that was towed, stored, and then later disposed of.
Debt Collection
Activity to collect money that is owed by a business or individual
Debt Collection Agency
A business that pursues payments on debts owed by individuals or businesses
Consumer
A person who has the obligation of paying a debt
Demand for Payment
A creditor's or debt collection agency's request for payment of an alleged debt
Dispute
To assert that one does not owe the amount claimed or a disagreement about something important
Dunning Letter
The written process of communicating with consumers to ensure the payment of a debt
Enforceable
That which can be made to effective
Execution
A court order that attempts to enforce a judgment that has been granted to a plaintiff by authorizing a sheriff, pursuant to a writ of execution, against the consumer’s earnings, bank account, or other property
Exempt
Earnings or property the consumer may keep after filing for bankruptcy
Fraud
Intentional deception resulting in injury to another person; any illegal acts characterized by deceit, concealment or violation of trust; a deception made for personal gain
Garnishment
A court order to an employer to withhold all or part of an employee's wages and to send the money to the court or to the person who won a lawsuit
Good Faith
Legitimate and honest efforts to meet the obligation of a given situation
Grace Period
A period of time past the deadline for fulfilling an obligation during which a penalty that would be imposed for being late is waived
Indebtedness
An obligation to pay money to another party
Installment or Installment Payments
A payment of part of a debt; usually paid at regular intervals
Interest
A charge for delaying repayment of money
Judgment
The determination by a court of competent jurisdiction on matters submitted to it
Judgment-proof
Someone who has little or no assets in which a judgment against them has little effect since there is nothing that can be taken
Keeper
The sending of a sheriff's deputy to a business for 4 or 8 hours to collect all cash and checks paid to the business during that time period
Lawsuit
Any proceeding in a court of law whereby an individual seeks a legal remedy
Lien
A legal claim on a vehicle for unpaid towing, repairs, or storage costs.
Lien Sale
If a person has repaired, furnished supplies or materials, towed or stored a vehicle AND has not been paid for the services rendered, that person has a lien against the vehicle.
If the vehicle is towed by a public agency or private towing company, the lien arises when the vehicle is towed or transported. The lien may be satisfied by selling the vehicle through the lien sale process.
To conduct a lien sale, the person/lienholder must have possession of the vehicle and have lien sale authorization from The DMV. Interested parties, including the registered and legal owners of record will be notified before the sale occurs.
If the vehicle's value is $4,000 or less, the registered and legal owners of record will be notified by the party conducting the lien. If the vehicle's value is greater than $4,000, DMV notifies all interested parties.
Lienholder
the person or entity that has an interest in the vehicle due to unpaid repair, storage and/or towing costs.
Legal Owner
the person or entity with a financial interest in a vehicle and is listed on the titling document in the “Lienholder” section.
Levy
To obtain money by legal process through seizure and sale of property; to enforce a judgment against a consumer's earnings, bank account or property, pursuant to a writ of execution
Low-Value Vehicle
a vehicle valued at $500 or less.
Lump Sum Payment
Payment (usually in full) by a single check, money order, or cash payment
Mediate
To resolve differences, or to bring about a settlement, between conflicting parties
Negotiate
The process of achieving agreement through discussion
Obligation
A legal agreement specifying the payment and penalty for failure to comply regarding money owed to another person
Original Creditor
The business or individual to which the consumer first owed the debt, before assigning it to the debt collection agency for purposes of collection
Payout Agreement
A written agreement between a consumer and collector that expresses the promises of both of them regarding the payment of a debt
Preponderance of Evidence
Evidence as a whole which shows the fact is more likely than not; sufficient to establish a reasonable probability; the more credible and reasonable evidence according to its weight and quality
Prerequisite
Something that is required in advance before some other right exists
Principal Amount
The amount owed, before adding interest or other charges
Privacy
A consumer’s interest in being left alone, or in not having others know things they have no right to know
Right
An abstract idea of that which is due to a person or governmental body by law, tradition, or nature
Salvage Vehicle
A salvage vehicle is a vehicle that has been wrecked, destroyed, or damaged to such extent that the insurance company considers it uneconomical to make repairs to the vehicle and the vehicle is not repaired by or for the person who owned the vehicle when the damage occurred.
Secured Debt
Debt where the property is pledged as collateral or where a creditor has gotten a lien against it
Seller
The person(s) and/or company shown as the registered owner on the Certificate of Title (and DMV’s records) is always referred to as the seller, even if the vehicle is a gift.
Settlement
A conclusive resolution of a matter and disposition of it
Settlement Offer
An offer to the other party to resolve a dispute by some kind of a compromise
Sheriff’s Till Tap
Act that involves a one-time emptying of a cash register up to the amount of the judgment
Sign Over Title
Act that completes the transfer of ownership of the vehicle when a Registered Owner and Interested Party sign the back of the California Certificate of Title in the appropriate spaces
Statute
Legislative act; an act passed by a legislative body that regulates debt collection activities
Statute of Limitation
A statute that limits the time within which a lawsuit can be filed to enforce a claim
Substantiate
Confirm; establish or strengthen as with new evidence or facts
Transaction
The act of conducting or carrying out (business, negotiations, plans); A deal or business agreement
Transfer
Whenever there is a change of ownership, the DMV refers to the transaction as a “transfer.”
Unsecured Debt
Any type of debt or general obligation that is not collateralized by a lien on specific assets of the borrower; debt that is not backed by collateral and the creditor therefore has no right to take the consumer's property if the debt is not paid
Vehicle History Report (VHR)
A VHR is the complete collection of a vehicle's historical data. Using a vehicle's VIN, businesses that provide VHRs mine the data from a wealth of public and private sources. These reports usually includes information on the vehicle's title transfers and registration along with the details of accidents, recalls, and general misuse.
Verification Notice
A written communication from a collector to a consumer that invites the consumer to inform the collector of any defense to a claim (sometimes called "Validation Notice")
Vehicle Identification Number (VIN)
Also known as the "very important number," these 17 digits unlock the genetic code of a vehicle. It is the key component used in a VHR to search a vehicle's past. All registration and titling data follows the number from owner to owner. The VIN became standard in all vehicles in 1981. Thus, detailed information for vehicles prior to that year is spotty at best. You can find the number on the driver-side dashboard or etched into the driver-side doorframe. You can also locate the number on your insurance card and vehicle registration.
Wage Earner Plan
Another name for Chapter 13 bankruptcy; an arrangement for the repayment of creditors under bankruptcy court protection
Waive
To forgive something, such as interest, court costs, part of a claim, or a deadline for payment
Writ of Execution
A court order that attempts to enforce the judgment that has been granted to a plaintiff by authorizing a sheriff to carry it out on the consumer's earnings and property