Expert: Michael Brotherton - 7/3/2007

Question
This is probably the weirdest question regarding an auto loan you've ever had, but here goes.  I'll attempt to sum it up with as much brevity as I can muster.  In 1997, I purchased a new truck.  Approx. 2 weeks afterward, I was forced off the road and the truck was totaled.  I had not yet made a payment on it.  The insurance company suggested we utilize a 'substitution of collateral' loan, in which I find another truck that is the exact value of the original one, and the bank will keep the original loan, but simply change the VIN numbers on the paperwork.  This would avoid hassles I was told.  Well, I found another truck at a different dealer whom was willing to sell it to me at the same financed amount of the original truck.  No problems so far.    
Well after paying my first payment, I was sent a refund check for the same amount.  I assumed that this was due to an oversight in paperwork, and thought nothing about it.  The next month the same thing happened, so I called the bank.  I was told that they would look into it.  Well months 3 & 4 went by and I kept getting refunded my payments.  I called to discuss the issue each time and finally spoke with a manager who wasn't very helpful and assured me he'd get to the bottom of it.  (see a pattern developing?) Month 5cam and when it happened again my dad called the bank manager(I was in college at the time) and tried to get to the bottom of things for himself.  The manager was somewhat put out(why I have no idea) and told my dad the issue was being investigated.  Can you guess what happened after I paid the payment in the sixth month?  Yep.  Another refund.  However this time when my dad called and spoke to the manager he was actually rude, and informed my dad that, "they were working on this issue, and to please not call him anymore or send anymore payments until we heard from him or the bank".  Well, that was almost 10 years ago this Sept. and I still haven't heard.  I still own the truck and have even replaced the engine.  The problem is that I don't have a title for the truck.  I wanted to sell it at one time(before the engine was replaced) so I attempted to begin investigating the issue again.  This time I was told that there was no record of me or my father even having an auto loan there.  And there are no marks/scars/negative reports on mine or his credit report regarding the truck loan.  The account is listed on my credit report and has the lien holder as this bank, but no amount is due.  So...I guess I had to say all that to find out how I can get a title for the truck, and to see if there is a statute of limitations on this type of situation.

Answer
I would need to know what state you are in . That will help with the statute of limitations. If you have a memorandums title or title with a lien recorded you can check the BMV to see if a lien is still valid. If the lien is still recorded you will need to write the company requesting the lien be released. if they cannot verify the debt they will have to release the lien. The risk is that they may find the account and try to leverage you into paying it. By law they have a right to collect their money or repo the vehicle. Send the letter by certified mail to the finance company. Advise them you will be contacting the Federal Trade Commission to file a complaint if they do not release the lien. If the debt is invalid they must release the title. This may be a tough one for you to crack but it sounds like you may stand a chance. Follow through with the  complaint if need be.

Good luck.