Last month I refinanced my 8 through a local credit union. They offered to reduce the interest by 2% so I took it. It is my understanding that when you transfer an auto loan they are supposed to transfer the title to the new bank (my credit union) and report that the registered owner is me and the legal owner is the bank.

Well....yesterday I got the title in the mail. My name under registered owner, and my name under legal owner. I have asked a few people what this means and it seems that the credit union does not have any colateral for the loan now.

Does anyone know what this means for me??
Do I now own my car and not have to pay for it :D

Thank you!

 

I'm sure you signed a "note" that pledges the car as collateral. Banks are far from dumb when they are covering their asses :D

 

Generally you sign something that says "If the other bank gives me the tital, I guarantee to sign it over to you"

 

This happened to me on my wife's car - they sent us the title instead of to the bank. Yes you do still owe the bank, but "in theory" if you wanted to sell the car or trade it in you do have the title and could do so. You would still owe the bank, but they did screw up.

Dennis

 

Someone along the line screwed up, but I'm certain there's a contract involved or something with your signature on it. I worked in a bank for a few years. You can't get away with anything, there's too many safety nets in place on their side