Reclaiming an impounded vehicle means retrieving your car or motorcycle that has been seized by the authorities due to traffic or regulatory violations. It involves following specific steps like paying all necessary fines, towing and storage fees, and presenting complete documents such as your driver’s license, and OR/CR. Once all requirements are settled and a release order from the LTO, MMDA, or local traffic office was issued, the vehicle can be officially released and returned to its rightful owner.

If your car or motorcycle gets impounded and you wish to reclaim it, this guide can tell you exactly how to reclaim your impounded vehicle, what to bring, where to go, and how to save money along the way.

Why Vehicles Get Impounded

Your vehicle can be towed or impounded for several reasons, depending on the agency involved (LTO, MMDA, LGU, or PNP-HPG). You may also check this list of impoundable violations.

Each agency follows its own fee schedule, but all must follow the same due process—meaning you should receive an apprehension report and know where your vehicle is being held.

Fees You Need to Settle

Reclaiming your impounded vehicle means paying all accumulated fees. These usually include:

• Violation fines and penalties based on your traffic offense (set by LTO, MMDA, or LGU)
• Towing fee depends on your vehicle type, size, and the towing company’s rate
• Storage fee charged per day until you claim your vehicle (₱60–₱200/day on average)
• Administrative or incidental fees for processing, notarization, or documentation
  

Note: The longer your vehicle stays impounded, the higher your bill grows. Settle your case and claim your vehicle as soon as possible to avoid piling storage fees.

Step-by-Step: How to Reclaim an Impounded Vehicle

To help you reclaim your impounded vehicle, here are the steps you can follow:

Step 1. Confirm where your vehicle is

• Check your ticket or towing notice for details.
• Call the MMDA, LGU traffic office, or LTO hotline to confirm the exact impound yard and requirements.

Step 2. Pay the violation fines

• Go to the office that issued your ticket (MMDA, city traffic office, or LTO).
• Settle your fines or contest them through adjudication.
• Secure a Payment Receipt and a Release Order/Clearance addressed to the impounding yard.

Step 3. Prepare the required documents

Bring both originals and photocopies of:

• Driver’s License
• OR/CR (Official Receipt and Certificate of Registration)
• Valid government ID
  If you’re not the registered owner, also bring:
• Authorization Letter or Special Power of Attorney (SPA)
• Owner’s ID (photocopy, both sides)
• Company Authorization Letter (for company vehicles)
  

Note: If your OR/CR is missing, prepare an Affidavit of Loss and any digital proof or LTO printout.

Step 4. Go to the impound yard

• Present your Release Order, IDs, and OR/CR.
• Pay the towing, storage, and other charges directly at the yard (some accept cash only).
• Get official receipts for every payment made.

Step 5. Vehicle inspection and release

• The yard staff will inspect your vehicle and ask you to sign an acknowledgment form.
• Check for any damage or missing items—take photos before driving away.
• Once cleared, you can finally take your car or motorcycle home.
  

If You’re Claiming Through an Affidavit

Some cases require a notarized affidavit, such as when:

• You lost your OR/CR (Affidavit of Loss)
• You renewed your registration after impoundment (Affidavit of Undertaking)
• You’re sending someone else to claim the vehicle (SPA or Authorization Letter)

Prepare two valid IDs and have the affidavit notarized. Bring it to the impounding office along with your other documents.

Special Cases

In some cases, the reclaiming of an impounded vehicle may not so easy:

• If the vehicle is evidence in a crime: Coordinate with the police or prosecutor for a release clearance.
• For colorum or unregistered vehicles: Expect higher penalties and longer impound periods.
• If you think the impound was improper: Take photos, get copies of the towing job order, and file a complaint or protest for refund after release.

Amnesty Programs  

Some cities offer amnesty programs to help owners reclaim long-impounded vehicles at reduced fees. For example, Mandaue City allowed vehicle owners to pay only ₱1,000 storage fee (plus towing and violation fees) for vehicles impounded between January 2020 and December 2022. Always check your local government’s official website or Facebook page for similar programs.

Money-Saving Tips

To help you save some money while reclaiming your impounded vehicle, you may want to keep these tips in mind:

• Identify the agency and yard holding your vehicle immediately.
• Ask about daily storage rates and payment cut-off times.
• Settle fines and claim your car the same day to avoid extra storage fees.
• Bring all required IDs and documents to avoid multiple trips.
• Take photos before and after release for your records.

For guidance, contact the LTO, MMDA, or your city traffic office to confirm requirements specific to your case.

If you are planning to buy a car through a bank loan, and are wondering if you can register it with the Land Transportation Office (LTO), the answer is yes, you can. However, do note that when you buy a car through a loan, the bank is technically the owner until you finish paying it off. For this reason, your Certificate of Registration (CR) from the LTO will show the word “encumbered.”

Still quite unsure about it? Let this article break it down for you and explain what happens to your documents and registration when you buy a car under a bank loan.

So, Can I Register a Car Bought Under a Bank Loan?

Yes, you can register or renew the LTO registration of a car bought under a bank loan. However, the bank is recognized as the official owner of the unit and will remain so, regardless of how many times you renew the registration, that is, until you finish paying the loan. 

The CR will also have the label “encumbered” until the loan is cleared. This means that the car is still under a loan or mortgage and you can’t sell or transfer it yet. But don’t worry — you can still renew or register it every year as long as you have the photocopy of the Official Receipt (OR) and CR. Once you have made a full payment to the loan, you may then process the encumbrance cancellation and update your CR at the LTO. Only after the encumbrance is cleared can you freely sell, transfer, or modify ownership of your vehicle without any bank restrictions.

What Happens During Registration or Renewal

Even if the car is still under the bank’s name, you can renew the registration yearly with the LTO. 

Here’s what you need to know:

• You’ll use the existing documents.

Bring your latest Official Receipt (OR) from the LTO and a photocopy of the Certificate of Registration (CR). You don’t need the original CR yet since the bank keeps it until you finish paying the loan.

• You’ll get a new Official Receipt.

After renewal, LTO will issue a new OR showing your registration is up to date. However, your CR will still list the bank as the owner and show “encumbered.”

• Keep your registration updated.

Most banks require that your registration stays current before they release your car documents later. This helps avoid penalties or problems once the loan is fully paid.

What to Do After Paying Off the Loan

Once you have fully paid your car loan, you become the rightful owner of the vehicle. Then, you will need to do a few things to make it official:

Step 1. Get your original documents from the bank.

Request the original Certificate of Registration (CR) and the release papers from your bank. Some banks may ask you to visit a specific branch, but you can request a transfer to one near you.

Step 2. Cancel the encumbrance.

Go to the Registry of Deeds where the mortgage was first registered. Bring the chattel mortgage documents from your bank. They will stamp or mark it as “Cancelled,” showing that you no longer owe the bank.

Step 3. Update your CR at the LTO.

After the mortgage is cancelled, go to the nearest LTO office to update your records. Ask them to remove the “encumbered” status from your Certificate of Registration.

Note: The process may take time because the LTO will verify your car’s original file from the office where it was first registered.

Video: Can I Sell My Car If It’s Still Under A Bank Loan?

Even if your car is still under a bank loan, it’s your responsibility to make sure its registration stays active and updated. However, it doesn’t mean that you can already freely do whatever you want with it. Only after you’ve paid off the loan and taken the final steps to make your ownership official can your car — and its papers — be truly yours to do as you please, freely and clearly. But, if you are thinking of selling off your car while the bank loan used to finance it is still unpaid, you may check this video below:

Losing your driver’s license (DL) to confiscation can be stressful, but the good news is—you can get it back once you’ve settled your traffic violation and met all the Land Transportation Office (LTO) requirements. Claiming your confiscated driver’s license from the LTO is simple once you’ve settled your traffic violation. You just need to pay the fine, prepare the required documents, visit the LTO office where your case was processed, and retrieve your driver’s license.

This guide explains, in simple and practical terms, how to claim your confiscated driver’s license from the LTO, step by step.

Why Your Driver’s License Gets Confiscated

The LTO or other traffic enforcers may confiscate your driver’s license if you commit a traffic violation that requires it under Philippine traffic laws. When this happens, you’ll be given a Temporary Operator’s Permit (TOP) or e-TOP receipt to use while your case is being processed.

Before you can claim your confiscated license, you must settle the violation, pay any fines or penalties, and complete additional requirements (if any).

Requirements for Reclaiming Your Confiscated License

To retrieve your DL from confiscation, you might need to prepare the following: 

General Requirements

• Pink copy of Temporary Operator’s Permit (TOP) or e-TOP receipt
• Impounding Receipt, if your vehicle was also impounded
• Affidavit of Loss, if the TOP or e-TOP is missing

Additional Requirements

If contested cases:

• Copy of Certificate of Registration (CR) and Official Receipt (OR) of the vehicle
• Copy of Driver’s License (for license-related violations)
• Copy of Franchise documents (for public utility vehicles)
• Smoke Emission Test Result or Motor Vehicle Inspection Report (if applicable)
• Notarized Affidavit of Protest or Contest, if filing an appeal

If sending an authorized representative:

• Provide an Authorization Letter or Special Power of Attorney (SPA), and
• A photocopy of the driver’s government-issued ID.

Tip: If you lost your TOP or e-TOP, you can submit an Affidavit of Loss instead.

Steps to Claim Your Confiscated Driver’s License

Once you have your requirements, you can:

Step 1. Pay the Fine

• Go to the LTO office, MMDA, or Local Government Unit (LGU) office where the violation was issued.
• Settle your fine according to the resolution or notice you received.
• Get your Official Receipt (OR) as proof of payment. You’ll need this to claim your license.

Step 2. Go to the Designated LTO Office

• Visit the specific LTO office indicated in your apprehension or resolution.
• This could be the district office, regional office, or another branch that handles license redemption.

Step 3. Submit Your Documents

• Present all your requirements to the LTO officer or releasing clerk.
• The documents will be reviewed and checked for completeness.
• If everything is in order, your license will be processed for release.

Step 4. Claim Your License

• Once approved, you’ll be asked to sign the log sheet to confirm receipt.
• The LTO will then return your confiscated driver’s license.

Can You Get Your License Back Right After Paying the Fine?

Yes, you can get your license back immediately after paying the fine, if there are no accessory penalties or suspensions indicated in your resolution.

Here’s how it works:

• Immediate release: If no suspension or extra penalties are stated, your license can be released after payment.
• With accessory penalty: If the decision requires you to attend a seminar or take an exam, you must complete it first.
• With suspension: If a suspension is imposed, you must serve the full suspension period before claiming your license.

Where to Reclaim and Who May Do So

The following individuals can process the claim:

• The apprehended driver, vehicle owner, operator, or conductor.
• An authorized representative, if the driver cannot personally appear

Processing Time and Fees

Under the Ease of Doing Business and Efficient Government Service Delivery Act (R.A. 11032):

• Simple cases: Within 3 days
• Complex cases: Within 7 days
• Highly technical cases: Within 20 days

Processing starts once all requirements are submitted.

For more detailed steps on how to settle apprehensions with the LTO, refer to this guide on How to Settle Apprehension Cases in LTO.