Car loan contract vs. title

[Pegster]

I live in California. I recently converted my car lease to a car loan. I've made one payment. Yesterday, I received the title to my car. Someone made a mistake and released title to me at the end of the lease instead of releasing title to the bank handling the loan. My question is, since I now hold title to the car does the bank handling the car loan have claim to the title.

 

[I AM ALWAYS LIABLE]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Pegster:
I live in California. I recently converted my car lease to a car loan. I've made one payment. Yesterday, I received the title to my car. Someone made a mistake and released title to me at the end of the lease instead of releasing title to the bank handling the loan. My question is, since I now hold title to the car does the bank handling the car loan have claim to the title. <HR></BLOCKQUOTE>

My response:

I want you to write back to me to tell me, and being perfectly honest about this, what you think, in your heart of hearts, is the correct answer. Then we'll discuss it.

IAAL



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By reading the “Response” to your question or comment, you agree that: The opinions expressed herein by "I AM ALWAYS LIABLE" are designed to provide educational information only and are not intended to, nor do they, offer legal advice. Opinions expressed to you in this site are not intended to, nor does it, create an attorney-client relationship, nor does it constitute legal advice to any person reviewing such information. No electronic communication with "I AM ALWAYS LIABLE," on its own, will generate an attorney-client relationship, nor will it be considered an attorney-client privileged communication. You further agree that you will obtain your own attorney's advice and counsel for your questions responded to herein by "I AM ALWAYS LIABLE."

 

[Pegster]

Originally posted by I AM ALWAYS LIABLE:
My response:

I want you to write back to me to tell me, and being perfectly honest about this, what you think, in your heart of hearts, is the correct answer. Then we'll discuss it.

IAAL


Ethically, I am responsible for the balance of the car loan regardless of whether I have physical possession of the title or not. However, I know that what is legal is not always the same as what is ethical. My initial thought is that the contract is binding, of course, just the issue of whether the bank could take possession of the car if I defaulted would be in question. I am going to honor the loan, I am just after the "what if" scenario, as in "What if I completely ignore my conscience, integrity, and character and decide to blow the bank off?"

 

[I AM ALWAYS LIABLE]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Pegster:

Originally posted by I AM ALWAYS LIABLE:
My response:

I want you to write back to me to tell me, and being perfectly honest about this, what you think, in your heart of hearts, is the correct answer. Then we'll discuss it.

IAAL


Ethically, I am responsible for the balance of the car loan regardless of whether I have physical possession of the title or not. However, I know that what is legal is not always the same as what is ethical. My initial thought is that the contract is binding, of course, just the issue of whether the bank could take possession of the car if I defaulted would be in question. I am going to honor the loan, I am just after the "what if" scenario, as in "What if I completely ignore my conscience, integrity, and character and decide to blow the bank off?"

<HR></BLOCKQUOTE>


My response:

Okay, you're on the right track. Let's discuss what that "Pink Slip" means to the bank. That Pink represents "collateral" for the loan; for, without it, the bank can, and will, recall the loan. Why? Without the Pink, there is no "consideration" for the loan, and will demand it's money back from the dealership. The dealer will then repo the car. However, you have "ratified" the loan by making a payment on it. Therefore, you are in "privity" with the bank, and they can also repo the car (they paid for it when they gave their money to the dealership). So, to keep you from getting yourself into a legal battle, I'll ask you this last question and you tell me the answer: What should you now do with that Pink Slip?

I am feeling so ferklempt right now . . .

Here are the topics to discuss:

1. Grand theft auto;
2. Breach of contract;
3. Breach of the Covenant of Good Faith and Fair Dealing;
4. Damages.

Talk amongst yourselves . . . oy vay !!

IAAL

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By reading the “Response” to your question or comment, you agree that: The opinions expressed herein by "I AM ALWAYS LIABLE" are designed to provide educational information only and are not intended to, nor do they, offer legal advice. Opinions expressed to you in this site are not intended to, nor does it, create an attorney-client relationship, nor does it constitute legal advice to any person reviewing such information. No electronic communication with "I AM ALWAYS LIABLE," on its own, will generate an attorney-client relationship, nor will it be considered an attorney-client privileged communication. You further agree that you will obtain your own attorney's advice and counsel for your questions responded to herein by "I AM ALWAYS LIABLE."


[This message has been edited by I AM ALWAYS LIABLE (edited April 05, 2000).]

 

[Pegster]

Okey dokey, I understand, but I don't think the bank does. I phoned the bank this morning to explain that I mistakenly was sent title. They said it was no mistake, I am supposed to receive the title, when I process it at the DMV, the DMV will automatically assign the bank the title. I asked how exactly would the DMV know to assign title to the bank since the leasing people didn't indicate anywhere on the title the new bank or the fact that there is a loan using the car as security. Under owners, my name appears with no conditions. To make it even worse, I'm not dealing with two differenct banks, the bank that handled the lease is a division of the bank that is handling the loan.

Since you have convinced me of the possible ramifications of improperly accepting the pink, this all makes me very nervous. I documented the conversation this morning with the bank, including their instructions to process the title as is. I'm going to go ahead and process the title. Hopefully, when the bank gets a competent manager who figures out what they've been doing, my rear will be covered.

Thanks for the info!

 

[I AM ALWAYS LIABLE]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Pegster:
Okey dokey, I understand, but I don't think the bank does. I phoned the bank this morning to explain that I mistakenly was sent title. They said it was no mistake, I am supposed to receive the title, when I process it at the DMV, the DMV will automatically assign the bank the title. I asked how exactly would the DMV know to assign title to the bank since the leasing people didn't indicate anywhere on the title the new bank or the fact that there is a loan using the car as security. Under owners, my name appears with no conditions. To make it even worse, I'm not dealing with two differenct banks, the bank that handled the lease is a division of the bank that is handling the loan.

Since you have convinced me of the possible ramifications of improperly accepting the pink, this all makes me very nervous. I documented the conversation this morning with the bank, including their instructions to process the title as is. I'm going to go ahead and process the title. Hopefully, when the bank gets a competent manager who figures out what they've been doing, my rear will be covered.

Thanks for the info!<HR></BLOCKQUOTE>


My response:

I am utterly amazed !! Boy, would I like to deal with "Jughead" at the "We R' Crazy Bank" on my next car loan ! Here's what I further suggest: Since a telephone conversation cannot be recorded, and is just so much vapor, and in order to cover yourself when they decide sue you when they finally figure out their stupid mistake, write a Certified Letter, Return Receipt Requested letter to "Jughead", along with a copy of the Pink, and explain EVERYTHING you have said and learned here. Then, when he writes back to you, you'll have copies of everything and the most perfect defense just waiting for that eventual day to happen.

Good luck.

IAAL


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By reading the “Response” to your question or comment, you agree that: The opinions expressed herein by "I AM ALWAYS LIABLE" are designed to provide educational information only and are not intended to, nor do they, offer legal advice. Opinions expressed to you in this site are not intended to, nor does it, create an attorney-client relationship, nor does it constitute legal advice to any person reviewing such information. No electronic communication with "I AM ALWAYS LIABLE," on its own, will generate an attorney-client relationship, nor will it be considered an attorney-client privileged communication. You further agree that you will obtain your own attorney's advice and counsel for your questions responded to herein by "I AM ALWAYS LIABLE."