Expert: Finance Guy - 9/16/2008

Question
My question involves a loan I had taken out to buy an SUV at a local Chev. dealer.  I was the only person on the note and was financed through GMAC. The loan was for 5 years and I had one payment left prior to final payoff and the dealer made the payment and has kept the title.  I found out what happened when I received a letter from GMAC financing stating that the loan was paid in full. Its been over 2 years and I have not received anything from the dealer in regards to any amount I owe or the title.  Did the dealer have the right to do this? When I talked to the dealer prior to the payoff of the loan they told me my vehicle was junk and they have no intention of repossessing.  Can they hold my title without repossesing?  Arent they responsible as "lein holder" to ensure the vehicle is insured?  This seems all wrong. Any recourse?

Answer
This is quite unusual!

Curious if the amount of the last payment was a balloon payment or simply a regularly scheduled monthly payment.

Regardless, GMAC was the lender, not the dealer.

Therefore, prepare a lost title request, get a new title and send to GMAC to have them remove their lien, if in fact they haven't already.

Usually, people would not be too upset if someone made a payment for them on their behalf, but it IS wrong for them to "hijack" your title simply by the act of making one monthly payment.

Anyway, that should take care of it.

Awfully strange though...

Good luck.

Ron