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I have a question. I purchased a vehicle 2 years ago with a loan through HSBC auto from a dealership in Ohio. The dealership not only gave me the keys to the car, but also the title which was free and clear with no liens. However, I am having problems with keeping up with the payments and HSBC are threatening to repossess the vehicle. My question is, since I already have the title with no liens on it, what legal actions would they have to take to get the TITLE back from me? Thanks.

Posted: Fri Jan 04, 2008 4:58 pm Subject:

First, what state are you in?
I believe they can file a motion to get the title back. Look up replevin laws in your state.

Posted: Fri Jan 04, 2008 5:38 pm Subject:

Well, I'm actually deployed overseas right now, but my title is from Georgia. Thanks

Posted: Fri Jan 04, 2008 5:45 pm Subject:

Being deployed oversess makes a huge difference.
Soldiers & Sailors Civil Relief Act (SSCRA) comes in to play. It was designed to protect our military personnel. Do some searches on google.

Apparently I can't post links directly.

Also, God bless you for your service and come home safely!

Posted: Fri Jan 04, 2008 5:52 pm Subject:

carreonandassociates.com/articles/soldiersact.html

Link made inactive. Links to other websites not permitted. -LCW

Guest · Posted: Fri Jan 04, 2008 6:10 pm Subject:

Thanks for your responses! I'll definitely be looking into that. But in the meanwhile, can they still legally reposses my vehicle while I am in possession of the title that's in my name?

Posted: Fri Jan 04, 2008 6:30 pm Subject:

Don't quote me on this, but I believe they first have to get the title and then get the property. I wouldn't bet my paycheck (or your vehicle) on this. Maybe someone else who knows better can take over from here... sorry.

Posted: Fri Jan 04, 2008 9:34 pm Subject:

Good luck over there! We wish for your safe and prompt return. I hate to be the bearer of bad news, but...

Your contract most likely has a security agreement that lists that car as collateral. If so, then a security interest exists with or without the title. The absence of a title doesn't avoid their security interest, and the law will still recognize that a security interest exists even if the lien was not perfected. HSBC can enforce their security interest at any time there is a default on the contract - this includes repossession. They only thing they can't do without the title is sell it; but even then, there are ways for them to get the title issued in their name.

It sounds to me like the car dealer screwed up by issuing you the title. They probably forgot to list HSBC as a lienholder when they sent in your registration, and that's why you ended up with it. As a lender, when I send a check to the dealer to pay for that car, there is a restrictive endorsement on the check guaranteeing that the dealer will send me (and not the customer) the title. I'm sure HSBC does the same, and if so they could actually sue the dealer over that mistake.

I'm not so familiar with the SSCRA. Maybe they cannot repo while you're overseas. If that is true then you have some time. But you should still try to work this out or they will start the whole process once they find out you're back.

Posted: Sat Jan 05, 2008 10:07 pm Subject:

It is also possible that you obtained a loan without specifying the car as a security interest. If you took out a personal loan, for example, or anything involving home equity, and the car is not listed in your loan paperwork as security interest for the loan, then they cannot just take it. They are only entitled to act upon the security interest, they cannot just decide to take whatever they want. So, a lot of this depends on that loan contract.

Guest · Posted: Sun Jan 06, 2008 5:55 am Subject:

Thanks for everyone responses in this matter. Very intelligent and thoughtful answers. I'll check into the loan contract more thoroughly to see why I might have received the title and registration to the vehicle. Meanwhile, I dug deep into my pockets and paid up on my car payments, so it's all good now. Thanks everyone.

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Clear and free title, but auto company wants to repo vehicle

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