Legal Question in Credit and Debt Law in Pennsylvania
car loan erroneously marked ''paid in full''
I received the title to my car with a
letter stating my loan was paid in full.
the title was signed stating the lein was
released. I called the loan company as I
still have a year and a half to pay on the
loan. The company told me they would
research it and get back to me. I have
received no further phone calls. I did,
however, receive my loan papers
stamped ''paid in full'' with another
letter stating my loan has been
statisfied and the lein on my car was
removed.
Since I have the title showing no lien is
on the car, the loan papers marked
''paid in full'' and the letters stating my
loan is statisfied and since I contacted
the company questioning their error
and have received no response, what
are my legal obligations concerning the
loan? Can the company now collect the
balance I believe I still owe?
1 Answer from Attorneys
Re: car loan erroneously marked ''paid in full''
You asked if you are responsible for your lender's error in managing your auto loan?
The simple fact is you owe the amount of money you borrowed from the lender plus the interest due thereon.
But don't look a gift horse in the mouth. Send a letter, certified mail, return reciept requested, to the finance company. Briefly explain the situation and state that you will not be liable for any additional fees or interest based on their errors. If your financier still send s coupons then keep on paying. If the company asks you to pay then keep on paying. If the company claims it doesn't want to be paid (it does happen) then don't pay. But don't spend the money. Put the money aside and save a copy of the letter and the return reciept you requested.
If after 6 years you have not been contacted about the money then you no longer need to worry about it. If the company ever comes after the money you must have it available. Do not let them increase the interest due to their errors.
And if they ask for you to reassign a security interest. You should consult an attorney before you grant them a lien on the car.
The moral you should take from this is that you must act ethically, but that doesn't prevent someone else from acting stupidly.
Regards,
Roger Traversa
email: [email protected]
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