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  1. #1
    Join Date
    Mar 2010
    Posts
    3

    Question Lien on a Car

    My question involves an auto loan or repossession in the State of: California
    I loaned $2500 to a friend on March 25, 2009. She signed a promissory note for the $2500 plus 4% annual interest. The note & interest was due Sept. 1, 2009. She repaid to me $500 in April, 2009. I have the car in my possession as she has nowhere to park it. She has not paid any more on the loan. Can I seize the car to satisfy the balance of $2000 plus the interest?

  2. #2
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Lien on a Car

    only if your contract allows you to.

  3. #3
    Join Date
    Mar 2010
    Posts
    3

    Default Re: Lien on a Car

    The note reads, "This agreement is secured by a vehicle owned by (her name): car description, license, VIN." The note is titled "Loan Agreement secured by Automobile". Since it says "secured" does that mean I can take the car? Do I have to take her to Small Claims court? I did place a lien on her car through the Dept of Motor Vehicles. I have the ownership papers. Thanks.

  4. #4
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Lien on a Car

    you have the "ownership papers"? What ownership papers?



    you have made no right to repossess the vehicle in your contract from what you have stated. Securing a loan with a vehicle does not mean you can repossess unless your agreement says you can repossess.

    the lien prevents the owner from selling the car unless the lien holder signs off. That is it and that is how the loan is secured by the car.

    you need to sue her for the balance or rescission of the agreement. If I understand Cali small claims, you can seek an equitable solution (one not based on money) in their small claims court

  5. #5
    Join Date
    Mar 2010
    Posts
    3

    Default Re: Lien on a Car

    I have the California Certificate of Title (pink slip) which shows the Registered Owner (her) and the Lien Holder (me). I will bear in mind that the lien prevents the owner from selling the car. We will write her a letter first, then see if Small Claims Court needs to happen. Thanks for your help.

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