I have been paying for my car since 2005 and still owe $3,800 on an unsecured loan. However, the DMV sent me the title in the mail about 2 weeks ago. Do I need to continue making payments or am I considered the legal owner? I know I owe the bank, but can they repo my car if I have the title? I believe I don't have to pay if I don't want to and all the bank can do is take me to court! I live in Kansas but bought my car in Colorado!
Debt Collection Attorney
Kansas recognizes equitable liens under this fact pattern. The Department of Revenue has simply made a mistake. This does not mean that a creditor loving judge will not take the car away if the bank wants it. There is some risk in not making the payments. However, repossession in the middle of the night is not very likely.