Legal Question in Banking Law in South Dakota

Secured loan question

My wife had taken out a loan in her name, however she had to use our car as collateral.

The car is in my name and I had to sign papers giving permission to use it as collateral.

My wife has since re-financed the loan two times (adding more $$ to the loan each time). I was not aware that she had done this.

I was not asked to give permission for the use of the car as collateral either of those times.

The car has since been totaled, and I need to use the insurance money to get another vehicle.

The place that gave my wife the loan refuses to release the title to me.

I am thinking that when my wife refinanced the first time, the original loan should have been considered paid off and the lien on the car released.

They should have had me sign off again on using the car as collateral for the second loan.

What's the law say?

Thanks,

1 Answer from Attorneys

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