My question involves an auto loan or repossession in the State of: California
In May 2013 I purchased a used automobile for cash from a dealer. At time of purchase, I decided to finance an extended service warranty from the vehicle's manufacturer. The manufacturer's financial services is now requesting first lien on the title. Currently the title is in my name, outright.
Here is the text of the letter they sent me(with PII redacted):
"Dear Mr. GeminiJ
"As part of completing your titling transaction, the local Department of Motor Vehicles was expected to issue a title for your vehicle listing [redacted] Bank of North America as lien holder. Unfortunately, the Department of Motor Vehicles records show that the title has been issued with incorrect or missing lien holder information. You should have received the original title in the mail from the Department of Motor Vehicles.
"We will be able to correct this issue through your local department of Motor Vehicles with your assistance. We ask that you return the following:
- The original title sent to you by the local Department of Motor Vehicles.
- Completed, signed and notarized enclosed Power of Attorney(s).
"Note, it is only necessary to return both Power of Attorneys in the event that your Department of Motor Vehicles has NOT sent you a copy of the original title. If you are returning the original title, please send only one Power of Attorney.
"For your convenience we have enclosed a pre-addressed, pre-paid envelope. Your prompt cooperation in this matter is appreciated and will help avoid future registrations complications and fulfill mutual obligations. Please return these documents no later than [redacted].
As I said, I do have the title in my possession, and it is in my name with no liens on it. There is very little left on the loan amount (32 payments of $189/mo). My question is: do I need to sign over title, or will this just go away as long as I keep my account balance up to date (which it is at this time and always has been)? What's the worst outcome I could expect if I choose to simply not respond? What kind of "registration complications" could they cause?