Bank discharged title, but still owe $$$

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2tall

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My daughter purchased a new car. The bank made a mistake and sent back all the original signed paperwork stamped paid in full. The actual title was sent back as well stamped lein discharged. The loan however has not been paid off and my daughter continues to make payments. Morally I know the loan has to be paid. Legally, would she be responsible if the bank took her court and she produced all the proper paperwork saying everything was paid in full?
 
Q: Legally, would she be responsible if the bank took her court and she produced all the proper paperwork saying everything was paid in full?

A: Yes.
 
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