HARRISBURG - An automobile credit company is suing State College, claiming the city gives away cars as compensation to towing companies.
State College and Karch Automotive are facing a lawsuit filed Jan. 24 by VW Credit Leasing Ltd. The plaintiff alleges that State College regularly seizes vehicles as part of its law enforcement activity but lacks a constitutionally appropriate procedure for disposing of seized vehicles.
The suit claims that State College summarily turns over control of seized vehicles to the private company that towed and stored the vehicle when it was seized.
The lawsuit further accuses State College and Karch Automotive of profiting from this practice, with the former avoiding costs related to preserving seized vehicles and paying for towing services, while the latter profits by demanding payment for release of the vehicle or selling it in case of non-payment.
The complaint stems from an incident where a vehicle owned and leased by VW Credit was seized by State College and given to Karch Automotive as payment for services rendered. VW Credit claims it was not afforded due process or just compensation for the deprivation of its property rights.
The case has been filed in the United States District Court, Middle District of Pennsylvania by Rebecca Price of Norris McLaughlin