I have a signed legal document between myself and a private party seller (a previous friend) on a car purchase. Prior to this I was in a lease
on another car that I was getting out of, and needed a new one, which was offered by lender / friend at the time.
Our signed agreement stipulates the amount of the loan
, terms and maturity date etc. Currently lender is no longer happy with that arrangement, and would like to arbitrarily change it. Which of course I do not want, since it's financially beneficial to me to keep things as agreed. Lender threatened to refund monies paid to date, and take the car against my will. Monthly payments have been on time each month as per our signed agreement, and payments have been made in full and documented. There is no stipulation in our loan agreement that allows for this act, unless borrower is in default of a payment over 30 days. Which I have never been.
Lender refuses to transfer me as registered owner, and themselves as lienholder. Lender claims this is being done to protect themselves from liability until car is paid off. Actually not the case but that's the position. My concern is since car is still showing lender as registered owner, that Lender could take the car even though we have a signed agreement on the car. And possibly sell it before I can do anything about it. What recourse do I have?
Since taking possession
of the car over 12 months ago, I have garaged car at my home, Made every payment, I've paid registration & for regularly scheduled maintainance. I followed the agreement to the letter.
The event that has stirred this whole this up recently revolves around insurance
Breifly I insured car when I took possession, until lender requested it stay on their insurance for liability reasons. Lender suggested I could pay them the monthly primium each month with car payment, and they would add me as insured driver. Which I agreed, but lender never proved to have added me as insured. Most recent insurance card expired March 5, 2016. I requested new insurance card showing me as insured driver. Lender became verbally hostile and demanded I find alternate financing or they would
do as mentioned above, refund money and take car. Lender proceeded to mail an insurance card 10 days later showing lender insured, not borrower. This is after requesting proof of insurance showing me as insured, in an email so proof of insurance existed. Lender does not feel obligated to do so. I've since obtained my own insurance to insure proper coverage for myself, family and investment in my car.
What can be done to insure loan stays as is, lender transfers me as registered owner, and harassment
messages telling me to "man up" get my own financing etc stop, or threaten me by taking the car to stop as well. This is nuts !
Thank you for you time!