Lien removed and title sent

[Vermont Montgomery]

Jurisdiction

Texas

I purchased a car from a dealership. I use my bank to finance this. Time went by and I was never charged for my first payment. I called the bank to see what the problem was and they told me everything was okay and because I'd set up automatic payments that it would just be deducted next month. The next month came and still a payment wasn't charged so I called the bank again and again they told me everything was fine. A third month went by and I called the bank and ask them if they received the title for the car that I'd financed and they had. They said however there was no record of a loan in their system and that the title they had been issued to me with the bank as the lien holder would be released to me. I've called the dealership 5 or 10 times and nobody's returning my call. So I have the car and the title issued to me, I have not paid a dollar for this car, the bank has no record of a loan, and the dealership won't return my phone calls. I wanted to understand the legal recourse of the bank and dealership with regards to the vehicle that I hold the title to and they have no record of.

 

[adjusterjack]

I strongly, STRONGLY, suggest you put the payments aside in a separate bank account in preparation for the day you have to pay it.

Sooner or later somebody is going to figure out that they didn't get their money and you WILL be sued or sent to collections (if you don't pay it regardless of who made what mistakes) where the debt will grow with interest, fees, and costs.

You know what you owe, it's on your purchase/finance contract. Put the money aside and don't spend it.

The statute of limitations is 4 years for a lawsuit. If you keep putting the money aside every month for 4 years, after that a lawsuit will be time barred and you'll have a nice big savings account and a free car.

Until then, don't spend the money.

One more thing, make a personal visit to the dealership and bring a camera. In case they happen to be out of business take a dated photo of the premises.

You might also check your state's business records and find out the ownership of the dealer and send a certified letter, return receipt requested.

You may one day need to show good faith efforts to resolve the issue and avoid penalties.

 

[army judge]

Out of curiosity, what year is the car, and what was the agreed upon purchase price?

Did you put up a down payment, or pass along title to a trade in?

 

[txls]

I agree with everything adjusterjack said. Definitely send the certified letter. Someday you may need to show that you tried. Make notes of dates, times and who you spoke to at the bank. Have you gone in person to the dealership?