What does it mean for me if my auto lender accidentally sent me the title to my financed vehicle?

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What does it mean for me if my auto lender accidentally sent me the title to my financed vehicle?

My credit union mailed me the title to my new truck, as well as the title to the one that I traded. On the title to my new truck, under lienholder it says “none”? What does this mean? Am I the owner of this truck with no legal obligation to continue paying the loan?

Asked on June 20, 2015 under Bankruptcy Law, Texas

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Even though you received title to your car and the lien was released, this doesn't mean�that your lender�has no way to recover the money that you owe it. The credit union�still has the�promissory note that you signed when you took the loan out (in which you promised to pay the debt back). And that note is still very much enforceable. Basically, what has happened here is that�your lender has turned the debt from secured debt (for which the car was collateral) into unsecured debt.�What this means is that if you default on the loan now, the lender is going to have to sue you in order to collect the debt;�it can't just repossess the car.

At this point, you may want to consult with an attorney�to find out what your options are.


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