What happens if you don't pay a title loan and they DONT come take your car?
If you're delinquent on your vehicle loan (in breach of contract), the vehicle CAN be possessed at ANY time. Just because they haven't doesn't mean they won't. Even so, until they do, unless you obtained the loan fraudulently, you're freely entitled continued use of the vehicle as its current owner. As a contractual leinholder, the bank or finance company can (and likely) will take independent actions, up to and including referring your account to their own collections department, a collection agency, and/or report your delinquent obligation to any or all of the credit reporting agencies. You continue to owe the loan regardless of the vehicle's disposition or who happens to possess it. Only if it's repossessed and subsequently sold to recoup the outstanding balance does any thing change. The lender is empowered by your power of attorney to sell the vehicle on your behalf and any amount they obtain for selling the vehicle (less repossession, storage, and sale fees) is applied to the outstanding balance. If it's insufficient to cover the entire balance, you continue to owe the lender as a non-secured debt. If they happen to sell it for more than you owe, they're obligated to refund the difference to you. The one thing you CAN'T do is sell the vehicle. Because of the lien, the title is "encumbered"; and it must become unencumbered before you can (legally) assign ownership to someone else. Indeed, you usually don't even have access to the title until the lien is satisfied. Some people have applied and received (through loopholes) replacement titles, claiming the original was lost or destroyed and falsifying (committing perjury) whether or not any liens (encumbrances) exist, but most eventually get caught and are prosecuted for both perjury and/or theft or fraud once they sell the vehicle. Best of luck. I hope this helps.
Can a car loan be in a different name from the title?
Yes. And No.Theoretically, yes the title can differ from the loan. Most common real life example is a husband and wife in the title but only husband on the loan. Parent and child too.However, most banks will want the title to match the loan, so they may require a change.Often, they require a change when get the loan directly from the bank because it's being looked at closer. Dealership loans get more diverse results as the dealer is the one doing the title paperwork.The only REQUIREMENT is that the person on the title be in the loan. You can't bring me mom's car but get a loan under your name. Go change the title with her first, then come in.
What happens if you default on a car title loan and you sell the car for junk can they take legal action?
A friend of mine took a car title loan for $3,000 and he didn't pay on the loan well anyways he used my address for the loan because he was in between places to live and they came to my house looking for him or the car and they told me they could get him for fraud if they didn't get the car back and later my friend told me the car ran hot and the motor blew and he sold it for $500 to a junk yard. I'm worried that my friend will get in legal trouble for what he had done and maybe even go to jail.
I just paid off my car...do they automatically send me the title?
One correction: When you receive the title from the lienholder (bank), DO NOT SIGN THE TITLE!!!!!! Once the title is signed, anyone that has that title can then take it to the Bureau Motor Vehicles and change it over to their name. Always keep the title in a Safe Deposit Box, or a lock box, for without the title you can not do anything with the car.