Can Seller Go to Jail for Failing to Tell New Owner that the Car Sold to Them Has a Lien on It?
Quick Summary
- It is illegal to sell a vehicle with a lien without disclosing that information to the new owner before the sale.
- This offense is a civil issue, and the consequences depend on the laws in your jurisdiction.
- This violates consumer protection laws, and the plaintiff would be entitled to compensation for the matter.
- If you’ve sold a vehicle with an undisclosed lien, seek legal advice from an auto dealer friend lawyer or a consumer protection lawyer.
• Fast Cash Today • Any Car, Any Year • High Approval Rates • Past Bankruptcies & Bad Credit OK • You Can Keep Driving Your Car •
Is it Illegal for a Seller to Sell a Car Without Informing the Buyer of the Liens on It?
The answer is yes – it is illegal to sell a vehicle without informing the buyer of its liens. The answer is clear in your local and state laws, but we’re here to help you understand it better.
In the U.S., it is illegal to sell a vehicle without informing the new owner there is a lien. This information must be disclosed prior to finalizing the sale. However, the seller will not go to jail. This is a civil matter, and the consequence is a civil lawsuit. If you are the buyer, you should seek advice from a trusted auto dealer fraud lawyer or consumer protection lawyer.
If you are sold a vehicle with a lien on it and the seller does not tell you, this is considered a fraudulent sale. Once you are informed of the lien, contact the lender holding the lien immediately. Depending on your state’s laws on the matter, you may be able to recover your money from the seller. We highly recommend seeking legal representation from a trusted attorney.
How Do I Know If a Car I’m About to Purchase Has a Lien on It?
When purchasing a used car privately, have the seller provide a letter from their lender showing the lien has been released. In addition, check with your local DMV and view the vehicle history report to confirm the absence of a lien.
Sometimes, a title may list a lien that has been paid in full but just hasn’t been released properly. This can be due to a banker error, failure, or merger. Be on the lookout for this when you’re working with a private seller.
Where Can I Go to Confirm If a Car Has a Lien on It Before Purchasing It?
You can find lien information at your local DMV and in the car’s vehicle history report.
- With the DMV, use the vehicle identification number (VIN) to check a car’s lien status. In most areas, you can do a lien search on the DMV’s website. You can also call your local DMV to get information about a vehicle’s lien.
- You can obtain a vehicle history from various online websites. Sites like Carfax and AutoCheck provide full vehicle history reports including lien information for a fee.
Please Also Ask
ALREADY HAVE A TITLE LOAN OR TITLE PAWN WITH ANOTHER COMPANY, AUTO MONEY CAN STILL HELP YOU!
If you have a title loan or title pawn with another company, Auto Money may pay it off at a lower interest rate!
Interested?
FREQUENTLY ASKED QUESTIONS
Can a car dealer lie to me?
While some dealers or sellers choose to lie to you during a purchase, it is illegal.
They can hide a lemon, pack your contract with unwanted add-ons, pull a “bait-and-switch,” or tamper with the odometer, for example. If this happens to you, you may have grounds for a lawsuit.
It’s important to pay close attention to the details of your sale and have a trusted consumer protection or auto fraud attorney on your side.
Are car dealerships legally allowed to omit information?
There are some aspects of a vehicle a dealer isn’t legally obligated to tell you.
This could include the ownership history, the vehicle’s damage history, or whether it has previously been in any accidents. Dealers will dodge these questions by giving you a vehicle history report from a company like Carfax or AutoCheck, whose reports state the information “may not be complete or reliable.”
This offloads the responsibility from the dealer to a third-party reporting system and makes it difficult to sue the dealer or the vehicle data company if you discover a problem with your recently purchased vehicle.
What are car dealerships legally required to disclose?
Dealerships are required to disclose the vehicle’s mileage – which is required to be disclosed on the Affidavit of Sale and whether the vehicle has a salvage title.
While these are what the dealer is legally required to disclose, anything else the dealer decides to tell you past that must be true. For example, if the dealer discloses the previous number of owners, that number must be true.
Basically, if the dealer states something as fact, it cannot be a lie.
What can I do if I feel the auto dealer was fraudulent?
We recommend checking your state’s Motor Vehicle Code for state laws to help you.
For instance, in the state of South Carolina, dealers are covered by the “Dealer’s Act” in Title 56 of the Motor Vehicle Code.
This gives buyers the ability to sue a dealer for any deceptive or unfair practices. This act can potentially award your attorney fees and double your damages recovered. On a federal level, the “Odometer Act” provides liability for dealers disclosing false odometer reads. Both of these acts are crucial to call on your dealer if you believe they’re being deceptive.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as governmental services advice, financial advice and/or legal advice. We are not government professionals, financial advisors nor legal professionals , and the content provided does not constitute governmental, financial or legal advice from a licensed professional. The content of this article does not replace personalized advice from a licensed professional who is aware of your individual circumstances.
Need Fast Cash for Last Minute Expenses? Get Same Day Cash at Auto Money Today!
Auto Repairs, Wedding Expenses, Healthcare Bills, Home Fixes, etc.
Auto Money Can Help with a Fast Cash Loan — Quicker Than Traditional Bank!
Auto Money is always here to help, so don’t hesitate to reach out. Whether you need guidance on budgeting or fast cash after an emergency, our team is standing by. We’re proud to serve our local communities, and to offer the money you need when you need it most – faster than traditional banks and other lenders! To get started, visit an Auto Money location near you today!
READY TO APPLY FOR A SECURED TITLE LOAN? VISIT AN AUTO MONEY STORE NEAR ME
WHAT PEOPLE SAY ABOUT AUTO MONEY
Ashley W.
Amazing customer service and very sweet employees. They helped me through the process for the first time and was able to get me as much as they could so great full to them.
Lakisha S.
I came in asking for a certain amount & they met that price. Very nice, very professional. Even gave my children a snack. Highly recommend them.
Shannon B.
Great service! Appreciate Amanda for all her help!
Zackary L.
Great crew, great people. Wish I could give 10 stars!
Donte H.
I came in when the store was about to close, but the ladies at the store stayed after their shift and assisted us with such kindness. They were very courteous. Please go see them at the north main location.
Brittney A.
Amazing customer service. Made me feel right at home. Easy to communicate with and Shaina is the BEST and QUICKEST to go to. In and out in about 45 mins.
Stanton M.
Good people to do business with.
Shatasia S.
Only place I will ever come and get a title loan. Quick, Easy and Honest.
• Fast Cash Today • Any Car, Any Year • High Approval Rates • Past Bankruptcies & Bad Credit OK • You Can Keep Driving Your Car •
MORE HELPFUL RESOURCES
Types of Services
Can I get approved for a secured title loan if I have a past bankruptcy?
How do auto title loans work exactly?
Can you refinance a car title loan?
Where can SC residents apply for a fast cash loan?
Is my salvage title eligible for an auto title loan?
Can refinancing a car title loan get me a lower interest rate?
Should I apply for a secured title loan or payday loan?
What are the advantages of using a secured title loan?
Can you get a title loan on a financed car?
How long will Auto Money hold my title and when will I get it back?
Where do I make a payment on my Auto Money title loan?
Will Auto Money buyout my current title loan for lower payment?
ALREADY HAVE A TITLE LOAN WITH ANOTHER COMPANY, AUTO MONEY CAN STILL HELP YOU!
If you have a title loan or title pawn with another company, Auto Money may pay it off at a lower interest rate!
Interested?
Title Loans in South Carolina
A title loan is a quick and easy way to get the cash you need, using your vehicle’s title for collateral instead of your credit score. The amount will be determined by our expert appraisers. Auto Money offers competitive interest rates and gives you the most money for your title with instant approval. And the best part is, you get to keep driving your vehicle!
SC Consumer Loans: Your Rights and Responsibilities
Disclaimer: This is a high interest loan. You should go to another source if you have the ability to borrow at a lower rate of interest. You are placing your vehicle at risk if you default on this loan.
Title Pawns in Georgia
A title pawn is a quick and easy way to get the cash you need, using your vehicle’s title as collateral towards borrowing money. At our Georgia Auto Money stores, you have 30 days to repay the title pawn. If you are unable to pay off the balance within 30 days, Auto Money’s professional and courteous staff is available to discuss repayment options with you.
Title Loans in North Carolina
Disclaimer: At Auto Money, we uphold all federal and state laws related to Title Loans. Title loan transactions are prohibited within the state of North Carolina.
Disclosure: This website is a solicitation for an auto title loan or pawn. This solicitation is not a unilateral contract or a guaranteed offer. All title loans and title pawns and the amount of the title loans or title pawns are subject to Auto Money’s approval that is contingent on several underwriting factors such as a completed loan or pawn application, your employment status, monthly income, and a vehicle evaluation.
* $20,000 instant approval loan or pawn amount is the maximum an applicant can receive. Actual amount of title loan or title pawn is subject to vehicle appraisal by an Auto Money employee and a complete application is required to be submitted and approved in-person by the party requesting a title loan or title pawn. Certain limitations apply. All title loans or title pawns issued by Auto Money are subject to the customer’s ability to repay the title loan or title pawn.
** www.automoneytitle.com is not an online lender. Applications are not processed or approved online. Personal information other than resumes that you submit to this website is an inquiry to receive more information regarding a title loan or title pawn from Auto Money. Any information you submit to this website will be forwarded to the Auto Money office closest to the ZIP code you have provided for the purposes of contacting you about a title loan or title pawn. Once your information is received and processed, you will be contacted by an Auto Money representative. Submitting your application is an agreement to be contacted by a member of our staff.
To see more of our Terms & Conditions, click here. For any further details, speak with us directly in-store.
