Question: got an auto loan from a net bank and with the check it had instructions to the dealership to include their name as a lienholder for the title.

well the dealership were careless (par for the course there) and didnt put their name on the title. so now i have a clean title.

i’ve been getting letters from a third party saying that they represent the bank and asking me to please go back to the dealer and have them fix the error.

my question is….do i have to? i mean i plan on paying the loan as i make good on all my obligations…but what can the bank do in this case?

an accountant friend of mine said, it was no big deal all that happened was that i got a personal loan at car loan rates…(this was a used car btw.)

any guidance is greatly appreciated!!

Answer: You’re being an asshole, plain and simple. If a bank was trying to pull something like that on you, you’d be crying bloody murder. You have a contract with the bank under which they have an interest in your car. The fact that their name is not on the title means that you can go ahead and sell the car to anybody without their knowledge. This means they have a high risk exposure, because their loan is now essentially unsecured. If you refuse to comply, I wouldn’t be surprised if the bank reposes your car.

How hard is it to go to DMV and get this matter straightened out instead of risking a serious complication? Well, yes, he is being a twit, but they can’t repo the car, since they don’t have a recorded lien or other interest in it. What they CAN do in most cases is call the note due, due to failure to perform on the borrowers part. In one of the 3-point type pages he signed, he probably agreed to all sorts of conditions about abiding by the terms of the loan, and acknowledging the bank had the right to kill the loan, agreeing to pay the legal fees if the bank had to sue, etc.

A very stupid thing to risk a (allegedly) good credit rating over, IMHO. OP should get a note on letterhead from dealer and bank, explaining the circumstances of the error, and take those and the title down to the DMV, and get the lien recorded. They might even waive the fee for the replacement title, since they deal with that dealer and that bank on a regular basis.

Standard disclaimer- IANAL (or a loan officer)- but I a notary for many years in a previous state, and had to stamp many title transfers and attached affidavits of wierdness attached to the deals. You don’t do that w/o learning a few things.

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