Page 1 of 2 1 2 LastLast
Results 1 to 10 of 11
  1. #1
    Join Date
    Jul 2010
    Posts
    6

    Default Title Loan Company Out of Business - How to Clear Title

    My question involves an auto loan or repossession in the State of: California

    I took out a title loan on my car. Later I found out the company was working without proper licensing. The company eventually lost their license, and another company has since taken over. What should I do to get the old companies name off of the title. The orginal contract that was entered into was illegal.

  2. #2
    Join Date
    Jan 2006
    Posts
    38,647

    Default Re: Title Loan Company Out of Business

    find out if the new company took on all assets and liabilities. If so, they would be able to release your lien, of course if it is paid off.

  3. #3
    Join Date
    Jul 2010
    Posts
    6

    Default Re: Title Loan Company Out of Business

    why would i pay off an illegal contract?

  4. #4
    Join Date
    Jan 2006
    Posts
    38,647

    Default Re: Title Loan Company Out of Business

    Quote Quoting econofemme
    View Post
    why would i pay off an illegal contract?
    because until a court determines it to be an illegal contract, it isn't an illegal contract and as such, binding.


    what are you claiming is illegal about the contract

  5. #5
    Join Date
    Jul 2010
    Posts
    6

    Default Re: Title Loan Company Out of Business

    The company was not licensed to give me a title loan in the first place.

  6. #6
    Join Date
    Jan 2006
    Posts
    38,647

    Default Re: Title Loan Company Out of Business

    Quote Quoting econofemme
    View Post
    The company was not licensed to give me a title loan in the first place.

    then how could they lose their license?

    The company eventually lost their license, a

  7. #7
    Join Date
    Jul 2010
    Posts
    6

    Default Re: Title Loan Company Out of Business

    In CA you have to have a license in each office that you take loans out in. This company had 5 offices and one license for all 5. ILLEGAL!

    And the license was not in the office I used to take out the loan.

  8. #8
    Join Date
    Jan 2006
    Posts
    38,647

    Default Re: Title Loan Company Out of Business

    Quote Quoting econofemme
    View Post
    In CA you have to have a license in each office that you take loans out in. This company had 5 offices and one license for all 5. ILLEGAL!

    And the license was not in the office I used to take out the loan.
    then sue them for a rescission of the contract.

    there are a couple problems with that though. 1. Obviously, they are out of business; 2. rescinding a contract can mean you return the parties to the condition they were prior to the contract. That would mean you give them back their money and they release the lien. (oh damn, that would mean paying the loan back)

    so, since they are now no longer in business and there is, as far as the state is concerned, a valid lien, you have a problem. Not sure how you would prove your claim of a lack of license now that they are no longer in business.

    Due to that, you are kind of stuck trying to find out if this new business took over all contracts of the old business or not. If they did, you can try to make a claim of an illegal contract against them.


    bottom line: you don't get to just make a claim. You have to prove it and you have to prove it to somebody that has the power to do something about it. That would be a judge.

    So, you really need to know what this new company took over to know what you can do about your situation.

  9. #9
    Join Date
    Jul 2010
    Posts
    6

    Default Re: Title Loan Company Out of Business

    I can prove that the company did not have a license in the office that I took the loan out in. Do you think I could do this in small claims?

  10. #10
    Join Date
    Jan 2006
    Posts
    38,647

    Default Re: Title Loan Company Out of Business

    you have to have a party to sue. who would that be in your case?

    as to small claims court? not sure but I believe so, as long as you are below the limit ($7500 I think)

    1. Sponsored Links
       

Page 1 of 2 1 2 LastLast

Similar Threads

  1. Selling Car with Clear Title but Loan on Car
    By Plinius in forum Cars and Dealerships
    Replies: 3
    Last Post: 04-29-2011, 06:51 AM
  2. Title History: Title Company Missed a Break in the Chain of Title, Now I'm Trying to Sell
    By gmancbr600 in forum Real Estate Ownership and Title
    Replies: 2
    Last Post: 03-02-2011, 11:56 PM
  3. Given Clear Title to a Car With a Loan, and Sold It
    By Wizdomseeker in forum Cars and Dealerships
    Replies: 1
    Last Post: 05-06-2010, 04:54 PM
  4. Estate Assets and Debts: Did Failure to Probate Cloud Title, Should Probate Be Done Now to Clear Title
    By Confused_heir in forum Estate Planning, Administration and Probate
    Replies: 1
    Last Post: 05-21-2009, 03:34 PM
  5. Repossession: Have Clear Title but Still Owe on Loan
    By jen in forum Cars and Dealerships
    Replies: 1
    Last Post: 09-08-2008, 09:23 AM
 
 
Sponsored Links

Legal Help, Information and Resources