Legal Question in Consumer Law in Arkansas

Re: Unknowingly bought a vehicle with a previous title lien

There are a number of facts that are unknown to me as yet and may affect the validity of your claims. The involvement of an Indian nation also adds an additional legal wrinkle. Generally speaking, however, if you are a buyer in the ordinary course of business from a merchant (one who regularly sells cars - a dealership qualifies), you purchase free and clear of previous liens. If you financed the purchase of the car, you still have to pay the company who provided you financing.

I find it interesting that any lender would loan money on a vehicle in this situation and am curious to know where your monthly payments are being made. I also wonder if your lender knows about this problem. In fact, speaking with your lender may be the easiest course of action to resolve this issue.

Ultimately, you may have several options, which you could probably pursue simultaneously. These include the following:

1. Contact the Consumer Protection Division of the Arkansas Attorney General's Office and prepare a written complaint (telephone # in the Little Rock phone book).

2. Prepare a formal complaint with the Better Business Bureau.

3. Prepare a formal complaint against the dealership with the Arkansas Motor Vehicle Commission.

Before moving forward with these issues, I would probably suggest sending a letter to the dealership outlining the issue, give them a reasonable time to resolve your issue (10 to 15 days), and if the problem is not resolved, move forward with one or more of the above remedies. Most reputable dealerships will attempt to correct these issues upon learning of same, but, on occassion, more drastic steps are necessary. Given the passage of time, I expect a dealership to balk at your request for a repurchase of the vehicle.

It is possible that, as a last resort, you will need to bring suit against the dealership, and perhaps others, if the issues cannot be resolved.

There are limited time periods for bringing claims, so you should not delay. I would probably suggest, before doing anything, that you visit with a private attorney, bringing all relevant paperwork with you for a more thorough evaluation of your rights.