My title

[AmazinglySmooth]

Here's a story for you. I originally leased my 2018 Suburban and decided to finance it while rates were low. My credit union paid off my lease buyout. Here's the interesting part. I get an email today from the credit union saying that the tax office made a mistake and sent me the title without the credit union as the lien holder. I'm supposed to receive the title in the mail soon, and they want me to send it to them.

I fully intend on honoring my contractual obligations, but if you have the title, would you send it to the credit union?

My first thought was that this is some sort of title scam, but I independently confirmed that the email is from an actual employee at the credit union.

True story.

 

[iamdub]

The fun: If you have the title, free and clear in your name, then you legally own the vehicle.

The spoiler: They can take action against you for not paying them what you are legally bound to pay them, regardless of what you own.

Adulting: Just do as you should but only after having proof that having multiple transfers of ownership on the title's history won't affect it's value.

 

[OR VietVet]

I would try to keep the title but make the payments as scheduled. They may still win the argument but make them work for it. Your membership at the credit union may be stained after that though.

 

[PG01]

Why bother, my credit union goes above and beyond for members. If they want their name on it, so be it.

 

[Rdr854]

Merely sending the title may not be sufficient. Last year, I refinanced my GM loan through my credit union and had to record the lien on the title in favor of the credit union. This required me to go to DMV and pay a lien recordation fee. The hook that the credit union had was that if not completed within X days of the loan being funded, the extremely low auto interest rate would be converted to an extremely high unsecured loan interest rate.

I would contact your credit union customer service center to get explicit instructions on how to handle this.

 

[usnret]

Get the title to them. If you don't they have the options of calling in the loan immediatly or resetting the loan to a personal with a high interest rate.

 

[Rocket Man]

They have the upper hand title or not. If you want them to place a lien on you and watch your credit take a hit as well as suffer the consequences of a credit union that will no longer help you, then by all means hold onto that title.

 

[Joseph Garcia]

To me, doing anything other than what your credit union wants, is both a waste of your time, and a potential for an unfavorable comment being added to your credit report.

Honest mistakes happen, and if the situation was reversed, how would you want the other party to treat you?

As @Galante stated, credit unions are typically very good to their members, so why would you consider making things more difficult for both you and them?

Don't get me wrong, I would most likely be having the exact same thoughts and considerations as you, if I were in your shoes. But, at the end of the day, doing the right thing is the best long term solution, IMO.

 

[Fosscore]

^^ Some good advice guys and a good question from OP worthy of a post nonetheless as we can all learn or someone having been in a similar quandary. In the end the CUs do right by their members and that ding on a credit report would haunt you forever.

 

[Tonyrodz]

I had kind of a similar situation. In the early 90's I financed a very expensive car through my bank. I was able to refinance it after maybe 1 yr. The bank messed up after the refinance and mailed me the title, stamped "PAID" and signed. They never asked me for the title back, and I continued to make my monthly payments. Sure, I thought about it, but in the end I knew I didn't own it. That's why I continued to make my monthly payments. Just do the right thing. If not, it will def come back to bite you in the ass.