Incorrect New York DMV records led to recently purchased car getting repossessed, Queens couple says
Buying a car is one of the biggest purchases many people will ever make, and New York families rely on state records to make sure the purchase is legit.
But what happens when those records are wrong?
That happened to one Queens couple, who say they were blindsided after their purchase.
Newly purchased car repossessed
In December, Jennifer and William Malave bought a used BMW from a licensed dealer in Suffolk County. They paid in full, wiring $21,937 to the dealer.
Weeks later, they watched on their Ring camera as the car was towed out of their driveway.
"We were very confused and upset," Jennifer Malave said.
"I called the police department. It's the first person that I called, 911," William Malave said.
Using an app, the Malaves tracked the BMW to a nearby lot. That's when, they say, they learned the car had a lien, and it had been repossessed.
A lien is a legal claim on property, like a car, by an individual or entity you owe money to. According to the Department of Motor Vehicles, liens should show up on the title certificate and DMV computer records.
But the Malaves title stated, "No liens recorded," and the DMV report said there were zero active liens.
"I said, 'Repossession? How's that possible?'" William Malave said.
So, how does a car with no liens get repossessed? Well, it shouldn't.
Possible case of "title washing"
It turns out, the auto financing company Santander Consumer USA did have a lien. A company representative told CBS News New York they believe the lien was unlawfully removed.
"They confirmed that they did have a loan, not through me, not through my wife, through a third party," William Malave said.
CBS News New York hasn't confirmed the identity of the third party, but when they stopped making payments, Santander Consumer USA repossessed the car.
"We have a title with no lien on it, but we don't have a car," William Malave said.
CBS News New York sent questions to the DMV and the company. Two days later, the Ring camera captured the return of the BMW, nearly a month after it was repossessed.
Santander Consumer USA said they believe this may be a case of so-called title washing, the illegal act of altering a title.
A Santander Consumer USA rep said they have released the lien and given up their legal ownership rights. Santander turned the vehicle over to the Malaves to help minimize the impact of the alleged fraud.
An industry expert said that likely means the company is absorbing the loss, since restitution is unlikely in cases of suspected fraud like this.
A DMV spokesman said they're investigating and take allegations of fraud very seriously. They added that as soon as the DMV was notified, they "took action."
"We are pleased that this has resulted in the vehicle being returned to this family," the spokesperson said.
Safe car buying tips
"Once you started making your phone calls, then all of a sudden, there was action," Jennifer Malave told CBS News New York investigative reporter Mahsa Saeidi. "We really are very thankful."
The couple hopes something can be done so nobody else has to go through the same trauma they went through.
"This could happen to anyone," Jennifer Malave said. "It happened to us. It could happen you."
CBS News New York requested an interview with the commissioner of the DMV to understand what safeguards exist for New Yorkers who rely on state-issued titles. The agency declined.
Experts advise going to a reputable, licensed dealer when purchasing a vehicle. In this case, the dealer said they were willing to absorb the loss, too.
"When somebody commits fraud, you know, there's no guaranteed backstop against that," said Teresa Murray, a consumer advocate at the Public Interest Research Group (PIRG). "You can only do so much if somebody is lying, submitting fraudulent documents."
PIRG said always run the car's VIN through a reputable, paid database, which will help uncover all sorts of potential issues.
