Can the bank garnish my wages for a car loan when they had already mistakenly sent me the title of the vehicle and is now under my name?

I received a $24,000 car loan. I made my monthly payments for the car. I had paid about $3000 when in the mail I received a letter from the bank saying thank you for having paid off the loan in full and attached to the letter was the open title for the vehicle. The vehicle is now under my name. A few months ago a tow truck company came looking for the vehicle at my home. My wife was home and told the tow truck driver that the vehicle he was looking for was under my name, not the bank’s. The car was not there so he left. Last week my check showed I had a garnishment for the car.

Asked on November 3, 2011 under Bankruptcy Law, Arizona


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If you received a paycheck showing a wage garnishment, it means that there is a judgment against you and some company is trying to get the judgment your owe paid off. I suggest that you consult with a debt collection attorney about your situation.

Even though you received the registered title for your vehicle after you only paid $3,000 on a $24,000 car loan, you had to have known that the lender made a mistake. Well, the lender has discovered its mistake and sued you for failing to make your monthly payments on the loan.

You really should meet with a debt collection attorney to straighten out your situation with the car.

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