I purchased an auto back in may of 2008. I had it financed through a local credit union. I still have not received my tag and the title has not been secured by the credit union. The dealership has since gone out of business. There attorney contacted me and sent me to the dmv for a tag extension, which was difficut to obtain due to the length of time since the vehicle had been purchased. Now the attorney said i need to try to resolve this through the dealerships bonding company. I have no clue what to do. All i do know is that I continue to make my monthly payments but it looks like when the tag expires October 24th I willhave to park the car. It is very frustrating as the consumer.
Do i have any recourse? I need my car and I dont wont to let it go back because then it will effect my credit.
Construction / Development Lawyer
Most states require used car dealers to post bonds that provide coverage for a dealer’s failure to deliver title within a specified time frame. Depending upon the state, the bond may only provide $20,000 to $50,000 in policy limits (also known as “penal sum”) to pay all of the claims from everyone impacted by the dealer’s misconduct. There could be many bond conditions that could make your claim problematic. Nevertheless, you should contact your state’s regulators (the agency in charge of used car dealer licensing) file a complaint, get the contact information for your dealer’s bonding company and notify that surety of the problem in writing. Although the bond may not be sufficient to pay all of the claims against the dealership, the regulator and the surety may be able to point you in the right direction and tell you who is holding the title documents that you should have received. In a “best case” scenario, there will be lenders, fiduciaries or trustees that are holding your title documents and simply don’t know where you are. They may also be uncertain about what they should do. For that reason, communicating with the regulators and the surety will help you determine if you are dealing with a problem that can be resolved without counsel. If the problem cannot be simply resolved, you will need legal counsel versed in your state’s law and all of the your legal options