Question:

Is it illegal to have a car title in one person's name and the loan in another name?

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I recently purchased an car, but have lousy credit. My father was nice enough to sign the loan solely in his name. But he's out of state. therefore, the car had to be registered and insured in his state. But it's illegal for me to keep it in my state, with out of state tags and insurance. So i had to get it reg. and insured here. I called the Motor Vehicle dept. for my state, as well as my insurance co. I explained the situation and they told me how to go about having the car registered and insured in my name. And that this happens all the time, and here's what to do.

my dad got a letter from the loan co. stating that there is an issue with the loan being in his name and the title being in my name. I called and spoke with them, explained what the Dept. of Motor Vehicles here had said. They then told me that either the car has to be paid off or refinanced (none of which are possible), otherwise it's going to collections.

Is this actually illegal? and is there a way around this?

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2 ANSWERS

  1. Dorene Zeller

     


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