Car Title Confusion!

[walfigi]

My husband and I purchased a used car from a lot in February. We put $2000 down and financed about $7000 over 3 years through a 3rd party finance company. Our first payment was due on 3/10/10, which we paid on time.

The next day we received the title from the car in the mail. I have never before had a title to a car BEFORE it was paid for. The title lists myself and my husband as the owners of the car, no lein holder.

My mom said that we do not have to pay anything else on the car to the finance company because it belongs to use because it is titled in our name but this just doesn't seem right to me.

Is she right? Do I have to pay the finance company?

 

[army judge]

Your mother is legally correct.
It would appear that the loan company failed to place a lien on your title.
Maybe the state made the error?
But, that is all it is, an error.
You might argue you legally own the vehicle.
But, the loan company has the note.
Remember the contract you signed for the loan?
If you try to stiff them, they'll sue you on the note.
If you sell the car, they'll sue you for the balance owed.
They'll also prosecute you for conversion or fraud.

I suggest you do the right thing and inform the company of their mistake.
They'll profusely thank you, and you'll feel good for doing an honest thing.
You might need their forbearance on a late payment one day.

You were wise for thinking about this.
Sometimes the right thing isn't the only thing.
There's always another angle, and you just discovered it.