What is the name of your state (only U.S. law)? CAI sold a car back in March of 2008 however I failed to file a release of liability. When I sold the car I was paid with a credit union check so me assuming that since there was now a lien holder(the Bank) on the car the proper registration process would have occurred but it didnt. So now in Oct of 2009 I recieve a letter from a collection agency stating I owe them $2200 because all fees werent recovered at the auction and I was the last registered owner. I dont understand if the bank issued a check they would have became the legal owner of the car, right?? I also have a handwritten Bill of sale signed and dated by both myself and the buyer.. Please tell me what to do as the agency said I was liable??? Thanks......