Legal Question in Banking Law in Minnesota

Car title issues.

I live in Minnesota and in 2005 purchased a new car. I got the loan from a credit union and a mistake was made where the title was sent to me without listing the bank as the lien holders. This naturally concerned the bank and they repeatedly urged me to sign it over to them They have restricted all access to my account, althought I am current on my payments and I just recieved a letter stating that I am in default because they applied my last statement to a savings, ''hold'' account until they recieve the title. They are making it clear that they do not want my money but would rather have the car. They have damaged my already ''fragile'' credit with these practices. Can the legally do this? What would happen if I used the car as a trade in before they take it and continue to make payments? Can they garnish my check for payments I'm already making? If I sell the car am I guilty of theft if the title is in my name? Help!!!!! I need a vehicle and now recieving this letter feel pressured to try to get rid of this one and obtain another one before they take it.


Asked on 10/22/08, 9:01 pm

1 Answer from Attorneys
David Anderson Anderson Business Law LLC

Re: Car title issues.

I would need to review your loan document with the CU, but it likely has provisions requiring you to execute any necessary documentation to secure their interest in the vehicle.

There are remedies available to them no doubt for your failure to ensure their interest is secured. Call or email if you wish assistance with this matter.

Your credit could be substantially damaged if you default in your obligations.

If you transfer or sell the vehicle which was supposed to secure the loan, they could even pursue law enforcement and prosecution under MN Law.

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Answered on 10/22/08, 9:09 pm


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