I recently purchased a used car. I signed my loan paperwork and everything however the bank mistakenly signed paperwork with the DMV stating that the lien was satisfied relinquishing their interest in the vehicle and now the car title is in my name instead of the banks. Am I still required to pay off this loan when the bank has signed off with paperwork saying that the loan was fully satisfied?
1 Answer from Attorneys
No, and you don't have to pay your electric bill or your credit cards or your rent either, since the creditors did not take any security interest in something you own to assure payment of those debts either. NOT! Do you really believe the laws of this state and country are set up so that if some junior employee at a bank makes a clerical error you win a free car? Really? Not only does releasing a lien, even if intentional, not release the underlying debt, when the release of lien is a mistake, they can demand you re-grant them the lien. And if you don't, they can sue you to have a court order the lien put back on the car. And you can bet your loan documents had an attorneys fees clause, which will mean that if they do have to sue you to put the lien back, you will have to pay their lawyers. So go ahead and try not paying the loan.
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