"Lienholder" threatens collection over impound fees incurred by third party
In California. can a creditor send my name to collection after auctioning a car I already sold to someone else over impound fees incurred by the person I sold it to, just because the car was still registered in my name at the time it was impounded?
The car is still impounded as of today since 12/15/13 at $50 a day storage, but now registered in the name of the current owner (ostensibly as from 4/11/13 which is the day I gave her the car and the title) who was operating it at the time of infraction/impound.
I was first sent a letter on 12/19/13 (as the registered owner of record) stating that I am liable for any outstanding costs that are not satisfied when the car is auctioned on 1/20/14. The charge then was a total of $405 but they still had a 30 day mandatory hold. The second and latest letter was on 1/22/14, a day after I called to inquire if the owner had settled with them. The charge was now 2400 and a new auction date had been set for 2/24/14. The new owner was stated as the registered owner but I was quoted in the interested parties box, though still with a title of registered owner. I called again and was told that I had to pay as I was the last owner of record or the balance after auction would be sent to collections.
Can there be 2 registered owners of a vehicle?
The letters say it was a police impound for parking violations but the garage was insinuating it was something else and would not give me the details.
Am I liable here, and can my name be sent to a collection agency in the event the car is auctioned? - it will certainly not cover the ballooning costs. The new owner is thinking of letting the car get auctioned and ghost bidding for it, she believes whatever is recovered at auction would satisfy them and that would be the end of the matter. Is the act of auctioning the car itself not a collections effort that could damage my credit?. Any possible impact on my credit score is something I would really like to avoid. Help!