I paid off my loan but the lien holder has not released the title, what can I do?

Contact the lender and ask that they take action to release the title because you have paid off the loan. Be ready with proof, such as the bank’s own “Paid in Full” note, or bank statements with payment history. When you pay off your car loan, your lender, or lien holder, is supposed to release the lien. At this point, you can enact a title transfer at the motor vehicle office, so that the title will be in your name only.

Now, let’s say the lender, for whatever reason, never gets around to releasing the lien, and you only find out about the oversight much later. Now you can’t contact the lender because the bank failed and there’s no proof that you own your car. What to do?

There is another option. Contact the FDIC, or Federal Deposit Insurance Corporation, and ask for a lien release in writing by email, fax, or letter. Explain the terms of your loan, when you paid it off, and proof that you paid it off. Proof can include documentation such as copies of canceled checks or a note from the lender that the lien was paid in full. This process can take up to a month.

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