Can I walk away from making payments on a car?
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Can I walk away from making payments on a car?
I called my finance company last month to get the title for registration purposes in ID. Well the finance company instead sent me a “Notice of Lien Satisfaction”. Complete on company letterhead, my full name, and the vehicle information and complete VIN. It To whom it my concern, (financial institution,left blank on purpose), holds no lien against the (my vehicle and vin) This letter stands as verification that the loan has been satisfied and (financial institution), no longer has a security interest in the above described collateral. It is signed and notarized. I also now received the clean title from the State with no lien listed . What are the repercussions of not paying?
Asked on September 26, 2011 under Bankruptcy Law, Idaho
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
What you have written is an obvious mistake by your lender giving you a satisfaction of your loan where it appears that you still owe money on it. I would advise your lender of the mistake and return the documents to it. Keep a copy of your letter to the lender for future reference.
If you fail to pay on the loan for your vehicle, it can be repossessed and you can end up having to pay the difference that is owing on the loan and what the car is sold for at an auction called a deficiency judgment. Possibly your lender will assist you in the future by bringing its error to its attention.
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