The standard practice for vehicle leasing companies when faced with a parking ticket was to pay up and try to recoup the money back from the person who had leased the vehicle.
This had proved to be an expensive option for vehicle leasing companies who have paid out more than $100,000 in the last year to the East Lansing District court in Michigan (US)
With a recent ruling from the Michigan Court of Appeals that would make vehicle leasing companies liable tickets issued on vehicles they own.
The appeals court said it doesn't believe the Legislature intended the law to be used by cities or townships to use leasing companies as collection agencies for parking violations.
"We caution against such a practice," the court said
An appeal by Ford Motor Credit co, against the ruling was upheld by a Wayne County Circuit Court this decision would of forced Ford Motor Credit Co. to pay the 22,000 outstanding unpaid parking tickets issued to vehicles leased by Ford Motor Credit Co. between 1995 and 1999 in Detroit.
But the appeals court also said that leasing companies are entitled to a hearing at which time that could show evidence that they were not in control of a vehicle when the ticket was issued.
Based on the ruling, Dan Jarvis, a spokesman for Ford Motor Credit Co., said the company is willing to cooperate with cities to identify lessees, but no longer plans to pay tickets and seek reimbursement from them.
