Consumer Protection Law
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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.
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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.