Setting up an Electronic Funds Transfer Account

Setting up an Electronic Funds Transfer Account

Effective April 1, 2015, all abandoned fees collected on behalf of the MDOS must be submitted by Electronic Funds Transfer (EFT). Once your account is established, you will be able to access the Department's abandoned vehicle website to report the disposition of abandoned vehicles in your custody. If you have questions, please contact the Abandoned Vehicle Help Desk at 517-636-5234.

When the owner redeems an abandoned vehicle or vessel, state law requires the custodian to collect a $40 abandoned fee from the owner. This is in addition to the towing and storage fees, which are paid by the owner if the vehicle or vessel is redeemed.

When an abandoned vehicle or vessel is sold at public auction, the custodian is only required to collect the $40 abandoned fee if the vehicle is sold for an amount greater than the accrued towing and storage.

The law requires you to forward $25 of the $40 abandoned fee to the Michigan Department of State. The $25 fee will be automatically withdrawn from your EFT account after you report that the vehicle was either redeemed or sold. The towing agency receives the remaining $15. Custodians may remit the $25 fee for sold and redeemed vessels or snowmobiles by sending a check payable to "State of Michigan - Abandoned Vehicle" to:

Michigan Department of State
Abandoned Vehicle Program
Cashier Section
7064 Crowner Dr.
Lansing, MI 48918

You are not responsible for collecting the $40 fee if the abandoned vehicle or vessel:

  • Does not sell at auction and is released into your custody
  • Sells at public auction for a price less than the towing and storage fees, expenses incurred by the police agency or custodian and the $40 abandoned fee.
  • Vehicle is classified as scrap and released by the law enforcement agency to you, a used or secondhand vehicle parts dealer, a scrap metal processor, an automotive recycler, or a foreign salvage vehicle dealer.
  • Vessel is classified as scrap and released by the law enforcement agency to you.

To apply for an EFT account with the Michigan Department of State, complete the application found here. You will be notified by mail when it is approved.