Understanding Liability After Vehicle Sale: What You Need to Know
Recently, I sold my car and completed all necessary paperwork, including signing over the title and providing proof of Release of Liability. Despite this, I received notifications from collections agency AFNI claiming I owe them $12,000 for damages caused by a recent accident involving the vehicle. The individual responsible for the crash was uninsured, and it appears I am being held financially accountable, even though I had already transferred ownership.
Has anyone experienced a similar situation? Is it legally permissible for a debt collector to pursue a seller after ownership has been officially transferred and proper documentation has been provided?
In a related case, my daughter-in-law sold her car to a buyer. Unfortunately, within a month, the new owner was involved in an accident and subsequently arrested. She provided AFNI with the Release of Liability and a police report confirming she is no longer the vehicle’s owner. She also verified with the DMV, which confirmed that her name is no longer associated with the vehicle. Given these circumstances, can she still be held liable for damages or costs related to that incident?
This situation highlights the importance of understanding your rights and responsibilities when selling a vehicle. Always keep detailed records, including signed titles and proof of liability release, and stay informed about the legalities involved in transferring ownership. If you find yourself in a similar position, consulting with a legal professional can help clarify your position and protect your interests.
