Repossessing a car?

[Mike Cutler]

Wade

State to state, it will vary.
Can they "legally reposess ? Probably, in the end they will prevail.

If I'm understanding the jist of what you're stating; You are not in default on the loan itself, but you may be in default of terms of the loan agreement.
The finance company should have a copy of your purchase agreement, and your loan agreement. Both documents should have identified the vehicle by VIN and stipulated the terms of the agreement, which I'm willing to bet if you peruse your copies will stipulate that they be listed as the sole lien holder on the vehicle. Loan, not the car.
These documents, as well as whatever document constituted a "Bill of Sale" would have been turned over to the DMV in NY. Once all of the paperwork was processed the registration and title would have been completed and sent to the respected parties. In CT if you finance a vehicle, you the purchaser and the payee don't get the title until the loan is satisfied. Different state though.

Yes they are being heavy handed. The threat of repossesion seems a bit extreme for their first communication you. Having been in this position myself, my bank just sent me a letter stating that I was in default of the terms of the loan, and that if the situation weren't corrected they too would consider the loan in default. Yes they did legally state their position, but is was a bit more professional that the way you have been treated thus far.

In the end the car is thiers, and ultimately they could legally seek to recover their investment if you are in default of the terms of the loan agreement.
You can mess around with them if you so choose, but you better be sure that you're on firm legal ground. It's your credit rating that may need to get straightend out a few years down the line.

[Jason Beam]

I don't understand how this is even a debate. Wade made a deal, someone messed up, okay sure. What does Wade stand to gain by not complying? What does he lose by complying?

They're supposed to be on the title. They aren't. There's two options: Do the right thing, or stand on some pointless principle that gains you nothing.

I should point out - what some of you are calling threats are assuming Wade's point of view and how he chose to describe the letter. We haven't seen the letter nor do we know how it's worded. It's a serious matter and nobody gains anything by being anything but accommodating to the agreement.

[Chris Padilla]

I can certainly understand wanting to "stick it to The Man" but just be prepared and know what you are getting yourself into should one head that direction. I agree fully with Jason. Just call them to verify and then do what the spirit of the initial contract dictated regardless of the error or any perceptions of tact or lack thereof.

[Paul McGaha]

I don't understand how this is even a debate. Wade made a deal, someone messed up, okay sure. What does Wade stand to gain by not complying? What does he lose by complying?

They're supposed to be on the title. They aren't. There's two options: Do the right thing, or stand on some pointless principle that gains you nothing.

I should point out - what some of you are calling threats are assuming Wade's point of view and how he chose to describe the letter. We haven't seen the letter nor do we know how it's worded. It's a serious matter and nobody gains anything by being anything but accommodating to the agreement.

I agree with you Jason.

Just a guess but the mistake was probably made by either the dealer (when applying for the title) or the DMV (when making the title). Not that it's really relevant who made the mistake.

If it were me I'd cooperate in getting the title fixed. The lendor's name should be on the title. It's only fair.

PHM

[Frederick Skelly]

I don't understand how this is even a debate. Wade made a deal, someone messed up, okay sure. What does Wade stand to gain by not complying? What does he lose by complying?

They're supposed to be on the title. They aren't. There's two options: Do the right thing, or stand on some pointless principle that gains you nothing.

I should point out - what some of you are calling threats are assuming Wade's point of view and how he chose to describe the letter. We haven't seen the letter nor do we know how it's worded. It's a serious matter and nobody gains anything by being anything but accommodating to the agreement.

Well said Jason. +2.

[Wade Lippman]

I can post the letter if you want, but it just says they will pursue all remedies including repossession if I don't comply.

If they had sent a prepaid Fedex envelop I probably would have sent it to them; it was just the imperial arrogance of 'we did it wrong and you will be screwed if you don't pay to fix it' that got me. I just can't do it. Instead I paid off the loan 3 weeks before their deadline to return the title, 4 years early.

[Phil Thien]

I can post the letter if you want, but it just says they will pursue all remedies including repossession if I don't comply.

If they had sent a prepaid Fedex envelop I probably would have sent it to them; it was just the imperial arrogance of 'we did it wrong and you will be screwed if you don't pay to fix it' that got me. I just can't do it. Instead I paid off the loan 3 weeks before their deadline to return the title, 4 years early.

I think that was a very wise move.

The one thing I'll say in the finance company's defense (I can't believe I'm defending a finance company) is that, a certain percentage of their loans go south when borrowers spend their paychecks in casinos, or decide to try crystal meth. And if those borrowers notice no lien holders on their title, they will probably sell the car to fuel their habit.

But that doesn't excuse their rude letter. They could have just as easily written something cordial and included (as you said) the prepaid envelope. Even better, include a small gift card for Starbucks or something "for bothering you."

[Mike Cutler]

I can post the letter if you want, but it just says they will pursue all remedies including repossession if I don't comply.

If they had sent a prepaid Fedex envelop I probably would have sent it to them; it was just the imperial arrogance of 'we did it wrong and you will be screwed if you don't pay to fix it' that got me. I just can't do it. Instead I paid off the loan 3 weeks before their deadline to return the title, 4 years early.

Now that's a sure fire fix. Well done!!

[Larry Browning]

I can post the letter if you want, but it just says they will pursue all remedies including repossession if I don't comply.

If they had sent a prepaid Fedex envelop I probably would have sent it to them; it was just the imperial arrogance of 'we did it wrong and you will be screwed if you don't pay to fix it' that got me. I just can't do it. Instead I paid off the loan 3 weeks before their deadline to return the title, 4 years early.

That's the very best way to handle this! Hit them where it hurts them most, take away all that interest they were gonna get from you. Well played!

[Chris Padilla]

I FULLY understand the tone of the letter and I would have had the same exact knee-jerk reaction but as someone said earlier, it was likely a form letter and they made sure to cover all bases to blanket as many personalities of people as possible. However, I agree that honey is better than vinegar but maybe their experience is different.

In a way, you sort of stuck it to them by stripping them of future interest payments by paying it all off early! BRAVO!! I hope the unexpected cash outlay doesn't cause you any issues although I'm certain you wouldn't have done it if it had.

[Larry Edgerton]

I can post the letter if you want, but it just says they will pursue all remedies including repossession if I don't comply.

If they had sent a prepaid Fedex envelop I probably would have sent it to them; it was just the imperial arrogance of 'we did it wrong and you will be screwed if you don't pay to fix it' that got me. I just can't do it. Instead I paid off the loan 3 weeks before their deadline to return the title, 4 years early.

You got even in the best possible way, they are missing all of that interest....

Larry

[Art Mann]

I would have done exactly the same thing you did. However, the finance company is only guilty of rudeness and attempted intimidation. They did not screw up the title. It was probably someone at the dealership who did the title request or perhaps the DMV. Lending institutions don't generate titles. That is the state government's responsibility. It is conceivable that the lending institution actually thought you were trying to swindle them, though I doubt it.

I can post the letter if you want, but it just says they will pursue all remedies including repossession if I don't comply.

If they had sent a prepaid Fedex envelop I probably would have sent it to them; it was just the imperial arrogance of 'we did it wrong and you will be screwed if you don't pay to fix it' that got me. I just can't do it. Instead I paid off the loan 3 weeks before their deadline to return the title, 4 years early.

[Mel Fulks]

In some states the title is held by a third party. I would not comply without more info in writing. The whole thing sounds
strange , I suspect it has something to do with the dealer finance office.

[paul cottingham]

Just for poops and giggles, I would submit the letter to your local consumer protection office (if you have such a thing.) see what they say, maybe get them to send a firmly worded letter telling them that is no,way to do business when they clearly screwed up.

[Jason Roehl]

This is just bizarre to me, considering how the process is done in Indiana. When we buy a car with a loan, we take the purchase agreement and title to the BMV (yes, BMV, not DMV, here). At the BMV, we fill out, and pay for, a title application (and annual registration, of course), on which we have to attest that all the information is true and accurate, including the presence of a lienholder and their address. That BMV branch then submits the application, and when the title is approved, the new title is sent to the lienholder who is then supposed to send the title with the lien release section signed to the purchaser once the loan is satisfied. If there is no lienholder (due to no loan at purchase), the new title is sent directly to the purchaser.

I did have a hiccup in the process once. I had a car with a lien on it that I was selling. I sold the car for cash (really would have preferred a certified check), with which I paid off the loan in full. After waiting and waiting for the title from the bank, I finally called. When I inquired as to the title's whereabouts, the reply by the, ahem, "gentleman" on the other end retorted, "Well, what do you need the title for?" Rather than school him on the legalities, I simply replied, "Because I sold the car!" It finally showed up a couple days later so I could sign it and send it off to the new owner.