Hello

I financed the purchase of a vehicle a couple of years ago, no issues with payment, everything is current etc.

I received a request to file a "Power of Attorney" to amend the vehicle's title. The finance company is not currently listed on the title as a lienholder.

What happens if I do not add them as a lienholder? Not trying to get out of paying them or anything just curious if they have any recourse and what that recourse might be.

Thanks

T

Not being listed as a lienholder does not imply that you do not have a debt to the finance company. It does, however, limit their ability to claim the vehicle should payments fall behind. The vehicle was, I am sure, properly listed as collateral for your loan, but without a lien being filed (similar to a standard UCC financing lien for commercial finance). The only way for them to take your vehicle now is to go to court - in which case you may end up owing them for legal costs too.

If the loan papers state you will supply them a title with a proper lien, they could force you, and/or call in the loan.

I would read the loan papers carefully

Thanks - appreciate the response.

No intent to avoid paying the loan - I was just curious about the nuances of not providing the POA.

Thanks for the feedback.

T