Debt Collection on Paid Off Vehicle

[howamidoing]

What is the name of your state? Missouri
Hello there, I dont quiet know if this is the right forum, so I am crossing my fingers. I am asking this question for my uncle, who does not have access to the internet.
Ok, roughly 7 years ago, he got a loan from Nation's Bank to buy a truck. He paid the truck off and has the title and the paper from the bank saying, Thank you for your business...yada yada yada, Well, one day the repo guy came and told him he was sent to pick up the truck. My uncle informed him that he indeed had the papers at home along with the title. They still took the truck. Well, he contacted the bank and they said that he was in default. So my uncle, being non-confrontational, and a push over, thought,"Well, there is nothing I can do." So the bank sold the truck and they are now coming after him for the remaining balance. The difference in what they said he owed, and what they sold it for. So here is my unlce, still having the papers and title and they refuse to talk with him about it. Can they do this? What can he do? I would think he would be able to sue them, but that's just my opinion. I know that he should have taken care of it a long time ago, so please dont criticize me about it. Is there a statute of limitations here? I have no idea where to begin looking up info on this kind of thing. Any comments or suggestions are welcome..Any ideas? Thanks all, Misty

 

[TigerD]

I don't buy it. The story make no sense at all.

Your uncle isn't giving you all the information.

 

[mb94]

Your story doesn't make sense. Is it possible after Uncle paid off the truck he took out some other type of loan using the truck as collateral?

 

[howamidoing]

All I Know

All I know is that I have seen the papers from Nation's Bank and the payoff letter etc. I also have seen the collection letter from the debt collection agency on behalf of Nation's bank. If he took out another loan, wouldnt that be through some other person, as the Nation's bank here is no longer. He couldnt have gotten anything from them as their location had closed prior to this. I will ask for more details. I can only go by what I know. Thank you all for your input. Misty

 

[collectone]

Stuff Happens!

It is not uncommon for finance companies or banks to mistakenly release the title of a vehicle prior to payoff. You may have a case in which both parties are correct. Your uncle may physically hold the title to the vehicle while still owing a balance on the loan. The only concern would be the repossession and sale of the vehicle. If the title was release prematurely, the bank no longer had a security interest in the vehicle. While the balance of the loan would still be outstanding, I don't believe recourse through reposssession was a legal option. You may want to discuss your situation with an attorney in your state to see if your uncle has any legal options for resolving the matter.

 

[howamidoing]

Thank You

Thank you for your kind help. I will tell my uncle he needs to consult with an attorney. Thanks all for your advice**************Misty