What if the original vehicle title lien holder sent me a free and clear title on accident?

Question

I refinanced the car with a new lender two months ago, BUT the original lender sent a free and clear title to me along with a letter stating this as well by accident. Why do I still need to make payments on an unsecured loan since they don't have a title to the vehicle??? This is not my fault it is the original lenders fault.

Answer 1

I think what you are asking is whether you still have to pay a car loan, that you signed on, since the lien is off your car?

The answer is yes.  The lien is separate from the promissory note.  The note is still binding, and you are obliged to pay even without the car as security.  If you don't, the lender still has legal remedies, such as taking you to court and getting a judgment.  It will also reflect poorly on your credit.

Answer 2

IF YOU HAVE NO LEGAL / BINDING CONTRACT WITH THE ORIGINAL LENDER , YOU OWE THEM NOTHING. IF YOU HAVE ALL THE PAPERS SHOWING YOU HAVE A NEW LOAN AND YOU ARE NOW THE NEW OWNER, THEY DONT HAVE A LEG TO STAND ON.. THEY SHOULD HAVE RESEARCHED THE TITLE BEFORE SENDING YOU A TITLE IN YOUR NAME.  THATS WHY THERE ARE "LIEN LAWS" AND SALVAGED TITLE RULES ... CHECK WITH DMV TO BE SURE THEY CANT SUE YOU FOR THEIR LOSSES. IF THIS CAR WAS SOLD TO YOU , AND YOU REFIED IT WITH SOMEONE ELSE, AND THE PAST OWNER HAS NOTHING TO DO WITH IT... YOU SHOULD BE THE ONLY OWNER AND NO ONE CAN TAKE YOUR CAR OR COME AFTER YOU FOR MONEY OWED BY SOMEONE ELSE.  IF THE UNSECURED LOAN WAS YOURS, YOU STILL OWE MONEY AND THEY DONT NEED THE TITLE---UN SECURED---....  GOOD LUCK

Answer 3

Having a title that shows no lien does not release you from your loan commitment.  They are separate.  You, of course, can try not making the payments, but I'm sure you will wish you hadn't tried