Can the lender file a felony warrant if you refuse to surrender the car?

Answer 1

Yes, they can. Legally, the car you financed is owned by the lender. If you fail to make your payments and then refuse to surrender the car, you are depriving its rightful owner of their property and have converted the vehicle to your own use. That qualifies as auto theft.

Added Answer:

Most likely the lender cannot. First, private parties do not file "warrants" like an arrest or search warrant. They may file complaints alleging criminal offenses in some jurisdictions.

Second, finance companies do not "own" the car that they finance. This is a common misconception. The purchaser of the car "owns" the car subject to a lien on the title for the amount outstanding on the loan. Certificates of Title (or of Ownership depending on the particular state's motor vehicle law terminology) are issued to purchasers in the name of the purchaser as the owner. The finance company is not named as the owner. Usually, the certificate of title has a place for the lien of the finance company to be noted on it, so that it cannot be transferred without a payoff of the lien.

Since the person refusing to surrender the vehicle is the owner of the car, he cannot be found guilty of felony theft of something he himself owns.

Most states govern repossession of automobiles within their own motor vehicle laws or go by Article 9 of the Uniform Commercial Code. The common rule is that an entity having a security interest in property such as a car, is entitled to repossess the property without court permission provided it can be done without a breach of the peace.

It would be best to determine whether an individual state's criminal or motor vehicle laws specifically state that a refusal to turn over an automobile to the lien holder constitutes a crime in any way. It probably is not auto theft, because the purchaser, not the finance company legally owns the car. There might be some provision somewhere regarding interference with the lien holder's lien. If an owner sells the automobile and fraudulently avoids paying the lien, he could be charged with fraud, but most likely not auto theft.