Can My Car Be Repossessed From a Storage Facility? Understanding Texas Law

If you’re storing your car at a vehicle storage facility (VSF) in Texas, you might be wondering about the possibility of repossession. Texas law outlines specific procedures that storage facilities must follow if you don’t claim your vehicle. Understanding these rules is crucial to protect your rights and your car.

In Texas, a VSF can consider a vehicle abandoned if it remains unclaimed by the owner. However, they can’t immediately sell your car. The law requires the storage company to notify you, giving you a chance to claim your vehicle before it’s auctioned off.

Notification is Key: Two Notices Required

Texas law mandates that a VSF must send you two notices before they can proceed with selling your car. Here’s a breakdown of the notification process:

  • First Notice: The VSF must send the first notice after your car has been on their lot for at least 24 hours.

    • For Texas Registered Vehicles: This notice must be sent no later than the 5th day your car is at the facility.
    • For Out-of-State Registered Vehicles: The deadline extends to the 14th day.
  • Second Notice: The second notification must be sent between the 15th and 20th day after the first notice was mailed or published. This second notice serves as a final reminder and informs you of the potential consequences of not claiming your vehicle.

What Happens If You Don’t Respond? Auction and Sale

If you fail to claim your car within 31 days after the VSF sends the second written notice, the storage facility is legally allowed to sell your vehicle at a public auction. This sale is intended to recover unpaid towing and storage charges.

It’s important to ensure your vehicle registration has your current address. If your address is outdated, you might not receive these critical notices, potentially leading to the loss of your car without your direct knowledge.

The “Junk Vehicle” Exception

There’s an exception for vehicles classified as “junk.” If your car is over 10 years old and in a condition to only be junked, crushed, or dismantled, the rules are slightly different. In these cases, the VSF can gain the authority to demolish the vehicle much sooner – as early as the 10th day after the first notice was sent. For junk vehicles, a second notice is not required.

Vehicle Storage Facility Responsibilities and Your Rights

According to the Texas Department of Licensing and Regulation (TDLR), VSFs must adhere to these notification and waiting periods. The TDLR provides consumer information regarding towing and vehicle storage, ensuring that facilities operate within the legal framework and that consumers are aware of their rights.

A [vehicle storage facility (“VSF”)] may consider a car abandoned if it is not claimed by the owner. A VSF must mail or publish at least two notices stating that they have the car and wait at least 30 days after the second notice before taking any action.

A VSF may sell a car through a public sale 30 days after the VSF mailed or published the second notice. Proceeds from the sale will be used to pay towing and storage charges. Any remaining proceeds may be paid to the vehicle owner. Disputes over the sale or the payment of proceeds may be taken to court.

Special rules apply to a car that is more than 10 years old and in a condition to only be junked, crushed or dismantled. A VSF with these abandoned nuisance vehicles is not required to send or publish a second notice and may sell the car 30 days after the first notice.

(Source: Texas Department of Licensing and Regulation – Consumer Information about Towing)

In Conclusion

Yes, in Texas, your car can be repossessed from a storage facility if you do not claim it after proper notification. VSFs must follow a specific legal process, including sending two notices (except in the case of junk vehicles), before they can sell your vehicle to recover costs. Staying informed about these regulations and ensuring your contact information is up-to-date is essential to prevent losing your car due to unpaid storage fees. If you find yourself in a dispute with a VSF regarding the sale of your vehicle, you have the right to seek legal recourse.

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