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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 111526
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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Need a lawyer Reason: 1. I purchase a car in Nov. of 2014 2.

Customer Question

Need a lawyer
Reason:
1. I purchase a car in Nov. of 2014
2. Made 12 payments until Nov. 2015
3. Fount out that the dealer & DFT (Lienholder) went out of business in May 2015.
Went I tried to call them to get my one year payment statement.
The car place & DFT Financial (Lienholder) where I was sending my payments.
Both addresses & phones were no longer there or working.
4. So I went to the DMV for help. They had the same address & phone as I had on
the car title. They told me to sent a certified letter to DFT. The letter came
back with no response.
5. The DMV them told me to get a bone & they would put My name on the title
for the car. That was in Dec. 2015.
6. Now in Feb. 2016 DFT Financial is saying that they didn't go out of business.
That they sent me a letter to tell me there new address. But no letter was ever
sent to me. My address has not changed in 3+ years.
7. DMV told me to stop making payments at the time I received the new title.
8. Now DFT Tinancial is coming after me. I need help.
Victor ******
Submitted: 9 months ago.
Category: Legal
Expert:  Law Educator, Esq. replied 9 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Unfortunately, legally just because you could not find their address to send payment and could not contact them for the period of time, that does not absolve you of liability for the debt, regardless of what DMV told you and regardless of them removing the lienholder from the title for you.
There is a contract between you and the lender to pay a debt and even if the last payment was in November 2015 or even May 2015, that is still well within the statute of limitations for breach of contract for them to pursue you now for continued payment on the balance of the loan. If they sue you and this were to go to court, if they can prove that you did not pay the loan off, despite your contentions above that you could not locate them or you believe they went out of business (which by the way does not extinguish the loan automatically) would not change the terms of that contract and the court would have to enforce it I am sorry to tell you.
So you need to negotiate the payments again with them. The court would hold that to not have you pay off the car you were under contract to pay and to let you keep the car would be considered unjust enrichment to you.