Loan/legal ?

[tattoojr]

A family freind purchase a new van 6 1/2 years ago she financed thru a bank. After she paid 72 months of payments she paid it off. My questins is After paying the van off she should have got a clean title or at least a release of lein from the bank, she has received neither after 6 months. Can she sue for the whole amount that she paid as the bank has renigged on their end of the deal? J.R.

 

[Coopie]

Yes you should have received a clean title, but most likely the paperwork was lost in the mail or the state Dep't of Motor Vehicles screwed up. Simply contact the DMV and see how they list the status of the vehicle - in some states you can do it through a website by entering the VIN.

There will be no need to sue. Banks (and finance companies) have no desire to own depreciating assets. Plus there are inherent risks to owning something that someone else is possessing. If you bring the situation to their attention I am certain they will work with you to rectify it.

Coopie

 

[tattoojr]

She wants to sell the van and the bank she used told her that they sent the title to the state atty., she called and they don't know what she's talking about and they called the tax collector to find the title there and its not there either. She can do nothing with this van until this is cleared up. My thoughts on sueing the bank are to expidite them getting this settled nothing more, as I know they don't wish to refund any monies or own a mini van. J.R.

 

[jawbreakerkid]

suing the bank will just cost more money and their lawyers could bury you in paperwork for so long that if you do win, by the time a verdict is handed down we'll all be traveling in flying space pods and vans will be obsolete.

 

[Coopie]

State laws vary - as do state administrative procedures, but this seems too complicated for a simple matter.

Have you done the following:

1. Contact the bank and request a lien satisfaction letter?

2. Contact the DMV and obtain a title?

This problem should be solved by either of the above.

 

[mark mcgwire]

I'm not sure what state you're in but here's how it works in New York.

I paid off my old truck last summer and the only title I had showed the bank as having a lien on it. Once I paid it off, I received a letter of satisfaction from the bank. You'll only need those two documents to sell the vehicle.

I wondered about getting a clean title after I paid it off so I went to the NYS Dept of Motor Vehicles and asked to get one. I was told I could request a new title that didn't show any liens but it would cost me (maybe $10-$25). She said years ago the DMV would do this for free, but now they charge. She also said it's not necessary to get a clean title to sell it.

I traded in the truck 5 months ago for a new one without any problems.

Hope this helps.