Refinacing or theft?
I bought a truck as primary with my husband as a cosigner on the loan from Toyota Financial. We got divorced, and my EX-husband was able to refinance the auto loan through USAA without my knowledge. USAA sent a check on his behalf to Toyota Financial and Toyota financial sent him the title in his name only! Where did it become legal to steal a car out from under a buyer? USAA does not accept responsiblity, neither does Toyota. Who is at fault?
**Jess, RN**Frequent Visitor
I agree with Tom47. You should review and have your lawyer or another review the paperwork and see what was finalized in the divorce. This should be easy and tell you what you are entitled to as it was handled through legal proceedings. Since there is still doubt and problems, it would benefit you to seperate yourself from you ex husband for future problems. By that I use his example. He has done so by refinancing the auto through his name only. There may be implications for his action and you may be able to go after him for this, but you need to see what was settled in the divorce and handle it through legal action.
It really depends on your state laws. For example, my vehicles were all registered in Ohio and I'm currently stationed in California. Titling in Ohio, by law requires that the title say when putting down owner information the following:
John Doe AND Jane Doe (when there is a co-borrower)
While in california the state allows for the terms:
John Doe AND Jane Doe
John Doe AND/OR Jane Doe
John Doe OR Jane Doe
The way it is written on the title gives the financial institution different options. The "and" requires both parties permission while the "and/or - or" only needs one of the borrowers permission. Check to see what your state law requires and see how the title is written. Hope this helps.
One thing I forgot to mention. It is not your financial company that writes your title. It is the state in which you title the vehicle. while a special PoA can be signed by the borrower for the refi company to handle that paperwork; the state is inevitably the drafter of the title. Normally, if the refi is happening with a financial company that is not the same as the original lean holder the refi company will request a release of title. From there, the refi company can use a special PoA to change the title to specify what the refi borrower requests. The refi company will submit this application to the state titling agency. If the terminology on the original title allows for one of the borrowers the to make changes the state will change the title. If not, the state will deny the request until all borrowers listed on the original title have agreed to the changes.
This leads me to believe the title was written in a way that he could make changes without your permission. I'll say it again, check your state laws and verify the terminology on the original title. Sorry for the long winded responses and I hope everything works out for you.