Vehicle Title Question

[Back in a Bowtie]

So in June i bought by truck off lease.  Got a loan from a local credit union.  When i got the Title from the DMV it said "No liens".  I thought it was odd but never really thought about it again.  Just got a call from the bank today and they said i need to bring the title in so that they can add themselves as the lien holder.  And if I don't my interest rate will go up.  My questions:

 

Do I HAVE to bring it in to them? 

Can they actually raise my rate? 

Do I have any negotiating power (can i get them to give me a lower rate)? 

[Tattooo]

IANAL but I am pretty sure once you signed your loan and locked it in they cannot raise your interest rate after the fact. I am pretty sure they are trying to scare you into going in.

[Back in a Bowtie]

6 minutes ago, Tattooo said:

IANAL but I am pretty sure once you signed your loan and locked it in they cannot raise your interest rate after the fact. I am pretty sure they are trying to scare you into going in.

that's the feeling i got on the phone as well.  And not that it would be good for me but i feel like without them being listed as lien holders i feel like it would be hard for them to take the truck if they wanted to / had to.  Not sure why I just really like the idea of them not being listed on it.  

[Northman]

I have to assume that the truck is the collateral for the loan. Without the title they will likely call the loan and you will have to try to find another lender to pay off the original loan. And that lender is going to need the title so no you cannot hang on to the title. You agreed to give them the truck as collateral.  

[Donstar]

I can't see any advantage to you not doing as the bank has requested.  I understand it may sound good to not have a lien but I would feel worse having a large unsecured loan.

[Back in a Bowtie]

5 minutes ago, Donstar said:

I can't see any advantage to you not doing as the bank has requested.  I understand it may sound good to not have a lien but I would feel worse having a large unsecured loan.

valid point... and i think that's what they'd try to use to raise the rate... that the loan was for a "secured" loan while without the title its "unsecure" 

[Northman]

5 minutes ago, 14tungstenLT said:

valid point... and i think that's what they'd try to use to raise the rate... that the loan was for a "secured" loan while without the title its "unsecure" 

Right. Not handing over title is a violation of the loan agreement. They will simply call the loan.

[Tattooo]

valid point... and i think that's what they'd try to use to raise the rate... that the loan was for a "secured" loan while without the title its "unsecure" 

Didn't think of that....good point

[Back in a Bowtie]

interesting screw up none the less

 

[jhbrennan]

I'm sure the loan docs describe the collateral in detail (with VIN) so the loan is secured, just missing a piece of paper.  Titles get lost all the time and they can be replaced with the lien holder listed.  Unless the docs required you to deliver a title with lien holder included, I don't see how they can raise the rate.  The loan docs have the detail.

[Northman]

2 hours ago, jhbrennan said:

I'm sure the loan docs describe the collateral in detail (with VIN) so the loan is secured, just missing a piece of paper.  Titles get lost all the time and they can be replaced with the lien holder listed.  Unless the docs required you to deliver a title with lien holder included, I don't see how they can raise the rate.  The loan docs have the detail.

Pretty important piece of paper though. Without the banks name on the title you could conceivably sell the vehicle from under them and the new owner would be able to title and license it. That's why they require that their name be on it.

[Paintor]

Had a friend buy a new Dodge Challenger and the dealership failed to provide the title to USAA...a bank. They raised the guys loan interest rate to 28% and he had to pay something silly like $2800a month....told the idiot to take it back to the dealership since they screwed up on the loan terms....he made the payments until he got it straightened out.

[Smoothbassman]

The answer is yes, they can jack your rate up since you haven't turned in the title.

I sent mine in, and they never updated my account to show that they had it and my rate got jacked up to 20%. Called and sorted it out right away.

Always mail inportant stuff with tracking numbers. Saved my butt this time.

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