Title lien/loan issue

[mora78]

What is the name of your state (only U.S. law)? Missouri

I have a question concerning whether the actions of a bank in my experience are legal. I got a loan for a used car in 1999 and paid it off in 2002. Along with the car loan, there was also a "line of credit" loan along with it, separate contracts. I was recently going to give the car associated with that loan to a relative, and realized i didn't have the title. Upon requesting a release from the banking institution in question, I was told that the account was in collections (this had never been my regular place of banking) and they would have to get back with me on why. They did, and according to them the "line of credit" balance was not paid off, and as a result they weren't required to give me a lien release note for the car I paid off in 2002.

According to what I've read elsewhere, a "line of credit" loan is considered an open-ended credit loan, and thus in my state of Missouri, this would constitute a 5 year statute of limitation on collecting such a debt - is this correct? I've been out of work for a number of months, so I can't afford right now to pay off the disputed balance on the line of credit, but I would at the same time like to be able to have the title to the car that I did pay off. Is the bank legally obliged to provide me with a requested lien release on the title to the car if I still have a (disputed) account with them in collections? Thanks for any information.

[HomeGuru]

Originally Posted by mora78

What is the name of your state (only U.S. law)? Missouri

I have a question concerning whether the actions of a bank in my experience are legal. I got a loan for a used car in 1999 and paid it off in 2002. Along with the car loan, there was also a "line of credit" loan along with it, separate contracts. I was recently going to give the car associated with that loan to a relative, and realized i didn't have the title. Upon requesting a release from the banking institution in question, I was told that the account was in collections (this had never been my regular place of banking) and they would have to get back with me on why. They did, and according to them the "line of credit" balance was not paid off, and as a result they weren't required to give me a lien release note for the car I paid off in 2002.

According to what I've read elsewhere, a "line of credit" loan is considered an open-ended credit loan, and thus in my state of Missouri, this would constitute a 5 year statute of limitation on collecting such a debt - is this correct? I've been out of work for a number of months, so I can't afford right now to pay off the disputed balance on the line of credit, but I would at the same time like to be able to have the title to the car that I did pay off. Is the bank legally obliged to provide me with a requested lien release on the title to the car if I still have a (disputed) account with them in collections? Thanks for any information.

**A: you are not correct.

[Antigone*of*Greece]

The bank is exercising their right of offset. I do have to say, I've never seen it done with the title to a car.

You will have to pay the balance on the line in order to get your title.