Q: Do I have to get a new loan if the finance company mistakenly closed my original loan as satisfied ?
I financed a vehicle and then received a letter from the finance company saying the loan was satisfied. The dealer has requested that I start a new loan. I’m not sure if I can negotiate a better deal since they made the mistake.
A:
My gut is telling me that there is more to this than meets the eye. If your loan was satisfied--meaning you repaid the loan with interest according to its terms--you do not have to get a new loan unless you need to borrow additional money to finance a vehicle.
If the letter was sent by mistake saying the loan was satisfied when, in reality, you did not repay the loan with interest according to its terms, you likely still have legal obligations under that loan despite receiving the letter.
If some sort of false information was provided by you or on your behalf (maybe by the dealer), it would depend on what that information is and how it affected the prior loan.
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