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NO. If the lender is trying to repo the vehicle and they can't find it,they cannot report it as stolen. Only the owner can do this. "STOLEN" is defined as "unlawful taking". You did not "take" the vehicle unlawfully. If you refuse to surrender the vehicle the lender may get a judgment (Writ of Replevin) and have the Sheriff's office come knocking on your door and only then will you have to surrender the vehicle or tell them where it can be located. Why stress over a vehicle? The value keeps going down and there are plenty of cars out there to buy. If for some reason, such as illness, loss of job, etc., where you cannot make the payments and no hope of making up the late payments, call the lender and have them pick up the vehicle. You'll get another vehicle one day. Just remember to remove your belongings and the plates. If you added anything on the vehicle you can remove that to. The lender doesn't know if you put in a new stereo system, and the car and everything in it is yours until it is returned.

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โˆ™ 2011-09-12 14:51:19
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โˆ™ 2017-01-08 21:03:00

The thing you need to keep in mind is that the lienholder IS the owner of the vehicle. Until you've paid off that lien, and hold the title in your hand, you do not own that car. Can they report it stolen? Yes, they can. Once you've refused to surrender the vehicle, your retention of it violates the terms of the contract whereby the lienholder (the actual owner of the vehicle) allows you to retain and use that vehicle. So yes, it is unlawful taking at that point. Will it happen? EXTREMELY unlikely. The lienholder doesn't want the car, nor would seeing you go to jail benefit them in any way. For one, it would be a serious PR black mark, not to mention that, if you went to jail, you would lose any employment you have, so how would you pay them back?They'll start by sending notices to give you a chance to respond, and they'll often be willing to work out something with you - again, their interest is in getting their money, not throwing you in jail. If that fails, then the repossessors come. Now, I have heard of recovery agents reporting vehicles as stolen (acting as agents on behalf of the lienholder - the legal owner of the vehicle), after they'd been told, "well, I just don't know where it is", but I've never known any who have actually done this, although I have known some to have filed missing property reports.

If the repossession succeeds, the vehicle will be auctioned off, and you'll be expected to pay the remaining balance owed. Which, you can either work out a payment plan or be sent to collections. If it fails, then they'll typically turn to a civil court, and a judge will order you to pay up or surrender the vehicle. Once that happens, then noncompliance will throw you in jail. A finance company would not, although it is possible.

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Q: Can a loan holder report car stolen?
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Related Questions

If you loan your car and it is not returned is it stolen?

it is if you report it to the police as stolen


Can the lien holder report the car stolen for being behind in payments in California?

Think about it, the car was NOT in their possession, so how can they report it stolen? They cant. Its a CIVIL matter NOT criminal.


If your car is up for repo but is stolen before you return your car what happens?

When your car is 'stolen", you file a stolen car report with the cops. Then your INSURANCE will pay off the loan. The lender will deal with the insurance co. and alls well. You dont have a car, but no payments either. BTW, the insurance co. HAS to be sure its stolen or they wont pay the loan off.


What can i do if i am listed as a cosigner and my spouse took the car and left the state?

i would report it stolen. if the payments are made the loan company can and probably will come after you for the money. If you report it stolen to the cops you can at least report it to the insurance company and the loan company and that should remove your responsibility.


What if you report the car stolen and its not?

You are committing a crime if you knew the car not to be stolen.


Can a creditor sell the title to an auto loan that has gone into repossession and claim that the vehicle was stolen?

The creditor is the lender. In most states, they have a lien on the title to secure the loan, but are not the title holder themselves. It is fair to say they cannot sell something they don't have. If a loan is in default and the security for it is repossessed, the title can then be gotten by the lienholder and sold to provide funds to payoff the loan. The creditor is the lender. In most states, they have a lien on the title to secure the loan, but are not the title holder themself. It is fair to say they cannot sell something they don't have. Why a creditor -bank- would then ever report a car as stolen, I can't follow. Presumably you mean the debtor or borrower wants to report his car as stolen and also sell it. Can't sell it without providing the title. can't provide a clear title without paying off the loan. If you did sell it somehow...then it wouldn't be yours to report stolen would it? If you don't sell it and report it stolen when it really wasn't, this is highly illegal. You can't use it yourself, nor can anyone else. Anyone in the car will be in a stolen vehicle. Grand theft is the term that comes to mind. And when the car is in the possession of the one that reported it stolen, or someone that shows that person knew it wasn't - even worse actions will result to them. But simply, this is the type of thing that is easily discovered and doesn't do any good anyway. That the car was stolen does NOT stop the borrowers obligation to pay back the loan in full and on time anyway.


If a person is 4 months late on a car payment can it be reported stolen?

NOT unless it was stolen. Stolen cars are reported stolen. Cars securing a loan in DEFAULT are reported as DELINQUENT to the credit bureau. If you choose to report the car stolen, go ahead. I would not reccommend it though. Filing a false police report is illegal in most jurisdictions.


What can you do if husband took car and car loan is under your name?

Call the bank. Explain the situation. Try to get the loan transferred into his name. If he doesn't co-opperate, call the cops and report it as stolen.


Can derogatory information remain on your report due to upaid tickets if you were'nt the one who got them and were unaware they existed until posted to your report?

you can request a hearing with the dmv, were these parking tickets? DId you have licencse plates stolen? Did you loan car out? you can request a hearing with the dmv, were these parking tickets? DId you have licencse plates stolen? Did you loan car out?


What do you do if you loan your car to someone and they don't return it Can you have the car repossessed?

You send them a certified letter demanding return of the car within 3 days. If no response, report it stolen.


Can the bank report the car stolen if you default on a car loan?

NO, it wasnt stolen. No, why would they report it stolen? If you default on the loan they will simply have it repossesed in order to sell the car and recoup some (and if they are lucky all) of the funds needed to payoff the debt. Yes they can actually. If you are leasing or financing you signed a contract. Once you default on that contract, the contract can be deemed void and therefore your rights to drive the car can be terminated. If they are unable to reach you and you are "not cooperating" they have the right to report their property as stolen in order to get the vehicle back. For further help, look over that contract you signed. = )


Can a lien holder report the car stolen for being behind in payments?

Of course not. The car has not been stolen. But guess who is going to have to make the payments if the primary lender does not. You the cosigner, that's who. I would suggest you talk to the person you cosigned the loan for. If I were going to have to make the payments I would for sure try to gain possession of the vehicle. This is the very reason cosigning is a bad idea.


Can the lien holder of the vehicle report it stolen in the state of Michigan?

not really sure on this one but in order for the lien holder to have the vehicle in his/her posssision it had to be repossesed... and then it was stolen while it was in their possession then i would say yes.. but other wise cant really see a reason why the owner would not be the person that reports it to be stolen..... if in fact the car owner is deleinquent in payment and the car is reported stolen and the car owner goes to jail that is false imprisonment and you can sue..


What if your car is about to be repossessed but it gets stolen who is then responsible?

YOU are responsible for the debt that is secured by the "stolen" car. Be sure to make a police report on the 'stolen" car.


How can you find a car that has been stolen by your business partner?

Report it stolen.


What should you do if you have a car title for a car but you dont have the car?

You can report it stolen!


When you pay off a car loan should the lien holder send you CAR KEY?

The lein holder does not have the key to your car. They will have a title that you will be sent.


Can the owner report the car as stolen when the co signer has it?

You can report it stolen but they wont do anything once they find out a co owner has the car. They cant steal a car they own.


Can you get arrested for refusal to file a police report for something stolen?

No. But if you get your money stolen and you don't file a police report, you won't get your money back. If you get your car stolen and you don't file a police report, you won't get your car back. If you get your jewelry or furniture stolen and you don't file a police report, you won't get your jewelry or furniture back. If you get your car stolen and you don't file a police report, you won't get your car back. If you get your bike stolen and you don't file a police report, you won't get your bike back. The point is if you get something stolen and you don't file a police report, you won't get your stuff back. But they're not allowed to put you in jail for refusal to report a stolen car, bike, jewelry, money etc. You won't go to jail for refusal to report a stolen object, but whatever you got stolen, you won't get it back.


Can a title loan company call the car in stolen?

No they can not!


Can a rental car company report the car as stolen?

Absolutely, if their car is not returned when stated in the rental agreement, the car is and will be reported stolen.


Can a car dealer report your car stolen if you default on your payments?

yes they can rejester if your car is stolen or not. please dont try that but


What happens to balance on car title loan when car is stolen?

Every car obtained on loan definitely is an insured one.One gives loan on insurance basis only.


If after ten years the repossed car is still on your credit report do you have to pay the loan back?

i repo in six states and as far as i know it will stay on your credit report until you settle your debt to the lien holder


If your rims got stolen and you wanted to report them stolen how would they be found?

Not possible to report them stolen unless they go jacked off in a car lot