Results 1 to 5 of 5

Hybrid View

  1. #1
    Join Date
    Dec 2013
    Posts
    2

    Default What Can a Title Loan Company Do Without a Release of Lien on File

    My question involves collection proceedings in the State of: Texas


    I took out a title loan the other day and was approved and already cashed the check I was given. I just found out the company needs a release of lien from a previous loan I had. What are the consequences if I don't give them the release of lien since I already have my money? I already know they will not repossess my vehicle unless I miss a payment or do not repay the loan back. But can they take any action against me without the release of lien? Would this be considered an illegal loan?

  2. #2
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: What Can a Title Loan Company Do Without a Release of Lien on File

    Get the release.

    First, they CAN repo the car. Almost certainly the fine print in your loan allows them to do so if you misrepresented the car as being free of liens and it wasn't. They do not need to be the primary lien holder to do so.

    If there is anything illegal here, you did it and will not benefit from it.

  3. #3
    Join Date
    Dec 2013
    Posts
    2

    Default Re: What Can a Title Loan Company Do Without a Release of Lien on File

    There is no lien on the car anymore and I have the paperwork to prove it. However they never asked for the paperwork and are wanting me to bring it in today. I offered to fax it but they said they need the original copy today and I've already expressed I can't get to them today. All she's telling me is they need it today or else.

  4. #4
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: What Can a Title Loan Company Do Without a Release of Lien on File

    So hide your car tonight and bring them the papers tomorrow.

    Make sure you keep copies of the papers in your own records.

  5. #5
    Join Date
    Nov 2013
    Location
    Chesapeake,Va
    Posts
    51

    Default Re: What Can a Title Loan Company Do Without a Release of Lien on File

    Yeah THEY screwed up and now the boss is telling them to get that form....personally and (I am not an attorney) I would ask why it wasn't taken care of on the day of loan origination ? They do use a checklist just like everybody else.

    Tell them to reduce the request to writing with an explanation of what they are specifically requesting AND EXACTLY what they intend to do if you refuse to produce and what they are offering if you comply ...perhaps a small discount for your inconvenience.

    Plenty of people here will tell you that you have a duty to "deliver the document" and its the "only" RIGHT thing to do but in reality if you do what I pointed out your creating a VALUABLE record of events in case theres a problem or dispute of events in the future . Furthermore THEY CANNOT repossess your vehicle....they "COULD" sue you for the full value of the loan though....since the loan is now decollaterlized but that would require a judge to certify and another good reason to get the letter I mentioned AND then if you do subsequently deliver the documents you MAKE SURE you get a receipt of delivery signed by the manager with time,date and description of document as well as a statement to the effect that your loan is now in good standing and they have all necessary documents.

    1. Sponsored Links
       

Similar Threads

  1. Payoff: Car Repossession by Lender Despite My Having a Lien Release and Title
    By efkf44 in forum Cars and Dealerships
    Replies: 16
    Last Post: 01-06-2014, 06:00 PM
  2. Transfer of Title: Lien Holder Won't Release Title
    By Clue in forum Cars and Dealerships
    Replies: 1
    Last Post: 09-10-2013, 08:41 PM
  3. Transfer of Title: Dealer Won't Release Lien or Transfer Title
    By BeckyH in forum Cars and Dealerships
    Replies: 6
    Last Post: 04-25-2013, 11:35 AM
  4. Repossession: The Release of a Title Lien by a Dealership That Obtained a Judgement Lien Against Me
    By lillybelle in forum Cars and Dealerships
    Replies: 3
    Last Post: 01-12-2013, 05:43 PM
  5. Liens: Old Lien Release On Title
    By maryellen in forum Vehicle Registration and Title
    Replies: 1
    Last Post: 04-16-2008, 04:45 PM
 
 
Sponsored Links

Legal Help, Information and Resources