Car Title Loan Issued to Only One Owner

[lawidiot]

My question involves collection proceedings in the State of: California

is there a california state law that says all owners of the vehicle have to be on the car title loans? My 16 year old is on title with me. I got a car title loan but the loan company did not remove her from title. they had her sign a grant of security interest. is this legal? would the loan be void because a minor is on title? other loan companies tell me their policy is to remove the minor from title before any loan can be made.

[Mr. Knowitall]

You borrowed money, so you owe money. Even if you found a way to void the contract you would have to return the money.

It's possible that, with the other signatory being a minor, they would have complications enforcing the security interest she granted.

[lawidiot]

Thank you for your quick response.

I guess I was looking for any specific law that I could read or quote, which says why or what complications could arise. I'm also concerned that my child will take the vehicle to a store and it could get repossessed from the parking lot.

[Conrad Hunter]

No minor can sign a contract and it is a nullity. I don't know CA law and have no idea if a minor can be on a motor vehicle title. I don't see what difference it makes. I am curious about repossession when there are secondary owners, again I don't know. In any case, you own the car and are liable for the loan. Having the driver on the title speeds things up if your kid is every pulled over by the cops.

[Mr. Knowitall]

Conrad, minors can and do sign and otherwise enter into contracts on a regular basis. Most contracts they sign are voidable, but that's not the same thing as being void.