Should I give my title to my car loan company?
October 11, 2013 9:51 AM Subscribe
The DMV sent me the title for the new car I bought through a dealer loan. Now the loan company says the DMV shouldn't have done that, and that I have to give it back. Is that true?
posted by Pacrand to travel & transportation (22 answers total)
In June, I bought a new car with a loan from the dealership (well, the auto company, really, TD Auto Finance). Nothing fancy, nothing shady. Car's fine.
A couple of months later, I received the title in the mail from the DMV. I thought it was odd; when I paid off my previous car's loan, I received the title when I paid off the loan. But I didn't think it was a problem, I just thought it was different. I've continued to pay the loan off on time every month.
Today, I received a call from the dealer saying that the loan company called them asking for the title. The DMV told them I have it. Now they want me to go sign the title off to them.
I'm not looking to cheat anyone. I'm just wondering:
1. Do I really have to do this? Does it benefit me?
2. The woman said (non-threateningly, in response to my question) that if I don't give it back, the loan company will keep it from being registered. Is that true?
3. Any reason I should keep it?
4. What verification of this can I do? I have a random woman calling me asking for my title, it seems prudent to check on things, but I'm at a loss how to do that.
I'm inclined to just give it to them, but I thought I'd see if anyone's heard of this issue before and has advice.