The Easy A actress's black BMW was allegedly impounded over the weekend for driving with a suspended license. This was the latest in a series of traffic violations.
Bynes has pleaded not guilty to a June 5 charge of driving under the influence and has also apparently had several car crashes in recent weeks.
A friend of the star told TMZ that Bynes has insisted that she is not suffering from serious mental problems.
Bynes is said to have assured concerned family and associates that her troubles have been "blown way out of proportion" and that "everything's fine", according to an insider.
She has not yet commented publicly on her latest legal issues.
Her problems have been publicly criticised by Lindsay Lohan, who objected to being jailed for driving offenses while Bynes is still free.