Legal Question in Banking Law in Utah

Re: Title to Vehicales

WIthout seeing the documents you signed with the bank, it is impossible to give a specific answer. In general, the bank can make the request, but that does not mean that a court would enforce it. You should not have traded the car without paying off the loan, and the bank believes that they have suffered a loss of their collateral. Unfortuneately for the bank, it is their responsibility to assure that they maintain their interest in the collateral. By returning the title to you, the bank created the problem. As long as you make the payments on the loan, the bank may find it difficult to get a judgment against you. You may want to remind the bank that if they make it difficult for you to make payments, that in bankruptcy that the bank would get nothing. If you are served with a lawsuit, you will have to respond, or by default the bank will get what it wants. Your other option is to offer the bank some sort of other collateral, equivalent to the balance of your loan.