It all started with a simple parking ticket. A simple ticket from a San Francisco parking lot. Why would this be news? Because it ended up turning into a legal, financial and human drama that exposes how the DMV works in California. This is the story of Joan McAllister, who accumulated more than $8,000 in debts after her car was towed.
But what her family did not know was that, by law, the Department of Motor Vehicles had to return to them more than $5,400 obtained from the auction of the vehicle! Money and bureaucracy… We are going to tell you the whole gossip of this story.
From ticket to debt
It all happened in 2022, Joan accumulated $1,113 in parking fines and they had to tow her car and the fine was going up to more than $8,000. But there was one detail they did not know and that was that Joan was hospitalized.
Her brother Stephen explained it, saying that they found her wandering the streets and she ended up hospitalized. It took some time until he was named as his sister’s legal guardian, he tried to stop the process but it was impossible because of California’s legal regulations.
When he finally had access to the process information, he discovered that the car had been auctioned, generating a surplus of $5,475 that belonged to the family. What?!!
How DMV auctions work
State law allows towing companies, workshops or impound lots to sell a vehicle to recover their costs in a process known as lien sale. Ok, we understand that, what we do not understand is why if the sale of a vehicle is higher than what the owner owes that money does not belong to the original owner of the car! It is the most logical thing, right?
But the DMV is not required to inform about the auction and the owner has only three years to claim those funds before they permanently go to the State. How do you know if they auctioned it? You guess it, because they do not notify.
A system that generates millions
Between 2016 and 2024, the California DMV collected more than 8 million dollars thanks to this process, although most auctions leave losses, some cases generate impressive figures: an abandoned Lamborghini Murciélago Roadster in 2023 produced almost 100,000 dollars of profit, money that ended up in DMV funds waiting for the owner to claim it.
Other examples include a Ford F-150 that left $14,232 extra or a Honda HR-V with $5,475 left over…
How did this story end?
The McAllister family is still waiting for the legal process to close to recover belongings stored in an Oakland storage unit. Joan passed away in 2023, shortly after turning 74, leaving behind not only debts and paperwork, but also the evidence of a system that punishes the most vulnerable.
“Nothing surprises me anymore, the whole process seems like a scheme to make money”.
Facing the DMV: a risky task
If you are in a similar situation, we can advise you (a little, but we can). Keep all the information related to your car, the towing receipts, the fines, the notifications, everything.
After that, if you see that nothing is moving, do not hesitate to ask directly about the auction process of your vehicle, because they are not going to offer it to you (they are not interested…). And watch out, if the amount is high, the best thing is to talk to a specialized lawyer who can give you a hand!
California drivers, attention
Remember that if they tow your car and sell it, you may have money waiting at the DMV that belongs to you… And if you do not claim it within three years, the DMV keeps it forever.
Bureaucratic ordeal, it has no other name, but it is important that you are always informed! Can you imagine not having to pay a fine because it is the DMV who owes you money?