Can the finance company repo your car when you have a title that says there is no lien holder?

Answer 1

This answer is for the last statement. I don't believe you have to turn the car over. They signed you up for a UNSECURED loan. Which means they required no collatoral. They want you to take the title down and add them as leinholder since they found out you bought a car with it. That way they have every right to take it and sell it for what it brings at an auction and your stuck paying the rest. If it were me, I would NOT add them as leinholder and fight the fact it was unsecured, not secured. The loan you took out was just like any other non secured loan, if you fall behind yes it will report negatively but catch it up when you get your money. Everyone falls on hard times some companies understand that and give you what they call a hardship. That is where they drop the interest down to 0% for usually 6 months for temporary instances or 0% for the remainder of the loan if you have a long term hardship. This also reduces your payments sometimes up to 55%. Either way, they are NOT the leinholder, keep the reciept where it shows you paid cash even though it was the blank check they sent. You could have bought whatever you wanted with that. Do you think they would be trying to take clothes back or furniture? No. It is something they feel they can get money back on and trying to trick you into doing their job for them. What you have yourself is a conventional loan. A signature loan. A non secured loan. Make sure with the DMV that there is no lien. If there really isn't. In my opinion it would be plain stupid to go and add them as lien holder, you might as well say here take the house too. NO WAY!! I know a little about secured and non secured loans. I had the same problem once, I had taken out a loan and bought a car. The finance company kept calling me when I fell behind. One day I was talking to them and MADE THE MISTAKE OF SAYING MY CAR...AUTO...I NEED MY CAR .. I'LL PAY ASAP...BLAH BLAH BLAH. She then got quiet and finally said, so this is an auto loan. Coming to my senses real quick I thought, they don't have it in their system as it being auto secured. It's just a regular loan to them. So I said, no it shouldn't be , why is it showing up as auto loan. She said NO. I had a car , with a title and the finance company had somehow given me a non secured loan. Since it wasnt auto secured, there is no auto for them to repo. see. Like I said, this is my opinion and I could be wrong and there could be some lawyer to read this and freak completely out, but from my experience and not to mention , years later I ended up working for this company, I know a little on how this works. No auto secured loan, no auto reposession. Good Luck.

The best way to find out is QUIT PAYING THE NOTES.

Turns out they weren't supposed to, and that we got the car back. They couldn't sell it without the title and with the title having no lienholder on it.

I had to stick to my guns though. They tried to give me crap about it for two weeks. I kept telling them to go ahead and try to sell it with me holding a clean title and that they were only piling up the storage fees I wasn't going to have to pay and they were.

I kept calling everyday and asking for the supervisor, who eventually spoke to me, realized they shouldn't have repossessed it. I paid them the balance because it was a small amount, and they waived (or ate) all the repo fees, storage, etc.

So they got most of their money. I got my car back. Rare happy ending, I guess.

Banks ect. DONT make mistakes but the humans who run them DO make mistakes. Its great when they will admit them and make it right. Congratulations on getting it resolved.

I've asked a few lawyers that and they don't know! I took a loan out online for People's First. They sent me a black check, which I wrote out to the dealer. My contract with the dealer states that I paid cash. I received a title that states there are NO lienholders. Two years later, I became ill and unable to work and fell behind on the payments. Oh yes, I was notified a month after I purchased the car that the loan is with Capital One. I didn't know that at the time and did not want to deal with Capital One. This info was never disclosed by People's First which is owned by Capital One using another name. Over 217,000 web sites all pertaining to complains from customers about Capital One. Horrible company. Capital One sent me a letter two years later when I fell behind, stating that this loan needs to be secured and I have to take the title to the DMV and put them on as lienholder for which I would have to pay a fee of $40.00. So they told me this is an unsecured loan. They have been trying to repo the vehicle. Again, 2 lawyers cannot answer since this is something out of the ordinary. I have called Capital One since I am to start receiving disibilty in two months. I told them I would pay all the payments and interest back at that time. I was only asking for an extension. They were so unwilling to work with me and wanted me to turn the car in now. Anybody know an answer to ths one? Can they repo the car and sell it at auction with me holding a clear title? What are the rights of Capital One selling a car without the title or them listed as lienholder on the title? My insurance company does not have them listed as a lienholder either. I told Cap One if the car is taken, I will not attempt to get it back. My lawyer told me if I then file bankruptcy, the loan will be discharged. So since the car will sell at auction for less than the loan, Cap One will eat the loss. This could be a loss of $10,000.00. So why aren't the lenders willing to work with you? I was not late on any payment for two years until I became ill. I am trying and promised to pay everything back but they don't want to hear it and will not grant an extension.