Overhaulin'

Can a collection company take my car if a loan is paid and title is clear?

I have a collection company looking for a vehicle that the loan company cashed a check for. They even sent me a clear title. Now I'm gettin calls from a collection threatening to pick up the vehicle n take me to court. Can they do that? Or is it illegal?

Public Comments

1. You need to make a copy of the title that shows there is no lien on the vehicle, and then talk to the collection company and send or take them a copy of the clear title. There is some misinformation and you need to clear it up in a professional and polite manner (always most effective) before they tow it in your absence. Even if they are wrong that would be a hassle. Good luck!
2. Is the collection company coming after you for a car loan debt or another kind of debt? If it's for a car loan debt that you have fully paid off, no they cannot take your vehicle, especially since you have proof of it being paid off. That would be illegal.If they do take your car, you can sue them for the inconvenience. If it's another type of debt, like a credit card debt or a mortgage debt, then yes they can come after you for your car. They are considering that collateral for your other debt.
3. You may want to go down to your local tag agency and verify that the title is clear. You may have a copy that is clear but it may have a lien on it.
4. ive heard that in some states they can take your car for unpaid credit card debt etc. i believe Mass. was one such state. they can seize your car and hold it until you pay the debt. pluse you pay the fees for towing and storage until the debt is paid. if you dont owe any other collectors or ever used the car as collateral tell them to screw off.