Question about a LOAN

[flashks]

What is the name of your state? Kansas

Last year i took out a loan for a new motorcycle. When i purchased the
bike, my bank, (which is a small credit union), never asked me for the title to place a lien against the bike. I never signed anything that stated their would be a lien against it either. About 5 months ago, i sold the bike for less than the amount of the loan. So, i still owe some money on the loan.
They recently sent me a letter stating that i dont have current insurance on the motorcycle, and i need to get insurance. They told me that they are going to place $470.00 per year on my loan for insurance. CAN THEY DO THAT? I never signed anything that required me to run insurance, nor anything stating there was a lien against the bike..... WHAT SHOULD I DO????? ANY HELP?? THANKS

[BelizeBreeze]

Originally Posted by flashks

What is the name of your state? Kansas

Last year i took out a loan for a new motorcycle. When i purchased the
bike, my bank, (which is a small credit union), never asked me for the title to place a lien against the bike. I never signed anything that stated their would be a lien against it either. About 5 months ago, i sold the bike for less than the amount of the loan. So, i still owe some money on the loan.
They recently sent me a letter stating that i dont have current insurance on the motorcycle, and i need to get insurance. They told me that they are going to place $470.00 per year on my loan for insurance. CAN THEY DO THAT? I never signed anything that required me to run insurance, nor anything stating there was a lien against the bike..... WHAT SHOULD I DO????? ANY HELP?? THANKS

Pay off the loan or look up security interest and Fraud.