Expert: Michael Brotherton - 7/5/2007

Question
QUESTION: My husband and I own a vehicle with both are names on the title. It says "and" not "or". I took a car title loan out on the vehicle without his permission. When I did tell him he said it was illegal of them to loan me the money with his name on it also. The car title loan has not returned his calls after he made them aware of this. The car title loan is 30 days past due and they just sent a letter to pay in full or they will repo the vehicle. Do they have the authority to do so when my husband is the owner of this vehicle also and never signed. The title does say "and".

ANSWER: They do not have the authorities at this time to repo the vehicle if they do not have a valid lien with ALL signatures required. However, they can demand payment in full of this debt. The fact is they did not do their homework when they made the loan. They basically screwed up. Their Bad!

I would write them a letter explaining the fact that although everyone's intentions were good when you took out the loan it turns out your husbands signature was required and they do not have a valid lien. Try to catch up on the loan and let them know how you can catch up. They don't have the right to repo. If they show up to repo, tell them to leave. If they do not leave call the police. Demand they show you a court order (replevin warrant). Don't worry this is a civil matter not a criminal matter. There was no intent to defraud.

Keep me posted.

---------- FOLLOW-UP ----------

QUESTION: I since spoke with one of the title loan people from the main office and she told me that I was wrong that they have a lien on the vehicle but she also indicated that she was not going to pursue repossing the vehicle and that she will garnish my wages if I do not start paying. I think she knows it was a mistake and won't admit it. Should I contact the MVD and find out if there's a lien? and if there is can the MVD re-issue a clear title knowing my husband is also owner? Also, wouldn't the MVD have caught this when the lien was made and not have put a lien on it?

Answer
I doubt the MVD would have spotted this. I do not think they could re-issue the clear title until it was established that the lender has no valid lien. This may well be a court matter. You may make this an issue if they filed suit against you. You can avoid a judgment and an expensive court case by making payment arrangements with the lender. All they want is their money.DO the best that you can but keep in mind ultimately they may proceed with legal collection if they don't like your arrangements.