When the Bank holds the title to a car you do not drive anymore

[longhorn]

Short story, I used my late nineties car as collateral on a personal loan. The depression hit in 09 and let the loan go into collections.  14 years have passed. The car has been parked at a friends house for six years now. My credit is excellent now, but I want to deliver the car to the bank since they hold the title. What is most likely to happen? Will the bank re report it to the credit bureaus?

[MarvBear]

That Tradeline would be obsolete at this point in time, and no longer legally eligible for reporting standards.  Do you currently have it tagged and insured to your state's required limits?

[longhorn]

31 minutes ago, MarvBear said:

That Tradeline would be obsolete at this point in time, and no longer legally eligible for reporting standards.  Do you currently have it tagged and insured to your state's required limits?

No, its sitting on a friend's property and want to get it out of their way.  I was going to walk into the bank and inform them I would be turning in the car and have it towed there the next day.

 

They could get $300-$500 out of it.

[MarvBear]

I would just have their property towed to their parking lot.  Then it becomes their problem.

[centex]

Is this a local bank or some distant entity?  

 

Does the car even still run?  

[longhorn]

Its a local bank. And the car should run though its been sitting out in a field for 6 years., Protected. 

[hdporter]

8 hours ago, longhorn said:

Its a local bank. And the car should run though its been sitting out in a field for 6 years., Protected. 

 

I wouldn't advise starting the car without flushing and replacing all fluids, as well as siphoning the gas tank and refilling.  Fuel and oils break down and can potentially cause mechanical problems if cycled through the engine.

 

With 14 years having passed, the debt is time barred against any suit.  The debt is off your credit report and may not be reinstated permissibly for any reason.  I truly don't think the bank is going to think you're doing them any favors by passing this albatross over to the bank.

 

Your best bet would be to get a salvage yard to take it away.  No title won't be a problem because they're buying it for parts.  You might possible squeeze a couple hundred out of them, but it's worth without compensation just to have it hauled free.

 

You might check the blue book value on the car (say, for fair or poor condition, if there is one).  If you can find a charity to take the car, the tax deduction might be worth more than you can salvage it, provided you itemize for taxes (I realize that fewer people benefit from itemizing given the hiked standard deduction as of a few years ago).

[longhorn]

Salvage yards will not take the car without a title and the bank has the title. I am going to go in and ask for the title, if they will not give it to me, I will have the car towed to their parking lot. The bank owns it, they can have it. Especially since the account has aged out.

 

Thank you all for your answers.

[A Credit Ed]

10 hours ago, longhorn said:

the bank has the title

But is the car titled in the bank's name?  Or is it titled in your name.  It's been many years since I had a financed vehicle, but I would guess the bank has a lien on the car that is titled in your name.  

 

Just spitballing here, but if you tow it to the bank's parking lot and you are the owner of the vehicle, then they might come after you for charges to get the vehicle towed away from their parking lot.

[centex]

As noted, the drop and run could get you a brand new credit matter vis-a-vis the bill for towing and storage.  

 

With the lender being local, I would work this out by going in and speaking with a bank exec/lending officer...

[longhorn]

Thank everyone for the their answers. Went into the bank and was given my title back, I was not even in their system anymore.

[MarvBear]

congrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrats!!!!!!!!!!!!!!!!!!!!!

 

[hdporter]

On 2/16/2023 at 2:33 PM, longhorn said:

Thank everyone for the their answers. Went into the bank and was given my title back, I was not even in their system anymore.

 

Outstanding! 

 

(While there may not be much to tell, I'm more than a little curious how that encounter went.  And was retrieval as simple as them going to the back and pulling the title out of a file drawer?  That's rather astounding on-site records retention, if so!)

[longhorn]

On 2/18/2023 at 9:50 PM, hdporter said:

 

Outstanding! 

 

(While there may not be much to tell, I'm more than a little curious how that encounter went.  And was retrieval as simple as them going to the back and pulling the title out of a file drawer?  That's rather astounding on-site records retention, if so!)

Yes, I went in and asked to talk to the loan dept, they looked in their system  and stated my account was purged four years ago. The loan lady actually  had it in her file folder in her desk and wondered why she had that file.  

 

So if anyone else is in the same situation. Go back and ask for your title back, its of no use to them since they really DO NOT want the car back to sale or transport to pick and pull.  Of course its better to just pay the loan off if able. Think long and hard about handing over that title.