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Alex J. Esq.
Alex J. Esq., Attorney at Law
Category: Consumer Protection Law
Satisfied Customers: 16450
Experience:  Experienced Licensed Attorney
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I received a car as collateral from someone I knew with the

Customer Question

I received a car as collateral from someone I knew with the original title and repo certificate from previous finance company signed off to him. I tried to recuperate my money and as I'm trying to change car under my name I find out it was financed to the individuals name by the same company that signed off on it they received a duplicate title but I have the original with original repo certificate, now the finance company sent me a threatening letter. I contacted DMV prior to finance company sending me the letter and they have it under investigation can I sue the finance company for illegally financing the vehicle that was never in customers possession ??
Submitted: 5 months ago.
Category: Consumer Protection Law
Expert:  Alex J. Esq. replied 5 months ago.

Hello. My name is Alex.
Thank you for your question.
I will be happy to provide you with information you are seeking for educational purposes only.

Unfortunately, generally, under similar circumstances only the vehicle owner who had defrauded the person who accepted the vehicle as collateral can be sued, but not the finance company, since there is no direct contractual or other dealings between the finance company and the person who ended up with a collateral that has an existing lien on it.

I am very sorry to provide you with this bad news, but please understand that I do have professional obligation to provide JustAnswer.com customers with correct answers, even when answer is not favorable to the customer.

I wish you the best of luck and God bless you!

Customer: replied 5 months ago.
I took possession of the vehicle (s) before there was a lien transferred to "ghost" customers that don't exist. I have a contractual agreement with that person/dealer dated before the registration was processed the customers do not exist/never had posession of the vehicles
Customer: replied 5 months ago.
How can the finance companies finance "customers" that never had posession of the vehicle? These are "new" contracts they financed not existing when I took posession
Expert:  Alex J. Esq. replied 5 months ago.

Thank you for your follow up.

Unfortunately, my answer stand the same, it is whoever first registered the vehicle / transferred title, that would be in the first position to claim the vehicle ownership.

Unfortunately, finance companies are able to legally finance vehicle without any visual inspection of the vehicle or without checking whether the titled owner physically possess the vehicle, that is why it is important before accepting a vehicle as a collateral to first check with the DMV whether a duplicate title has been issued by the vehicle and if not, then to immediately record a lien, so even if the duplicate title is issued, it would show an existing lien.

I am very sorry to provide you with this bad news, but please understand that I do have professional obligation to provide JustAnswer.com customers with correct answers, even when answer is not favorable to the customer.

I wish you the best of luck and God bless you!

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