Q: I put up a title for a loan, but the title was sent back to me by mistake, what could the title company do ?

A: I've had cases where such a lender goes to non-bankruptcy court with a plea of either unilateral or mutual mistake, and gets the title back by court order, but no damages award.

You don't state the value of the auto. If your fiscal problems are serious, speak to an experienced NC lawyer about a personal bankruptcy. In a bankruptcy court, without a perfected lien against the auto, it has a dischargeable (in whole or part) claim, and you enjoy the car's value.

A: As the attorney from Pennsylvania noted, there are court processes available for them to take if they want to get the lien put back on the title. They also can sue you for the balance due once you stop paying on the loan and get a money judgment without seeking possession of the vehicle. This can easily be done in small claims court or District Court. There is no jail or wage garnishment in North Carolina from a judgment for money owed, but judgments may accrue post judgment interest and can affect you for as long as 20 years (depending if the creditor takes steps to renew an unpaid judgment after 10 years). Whether or not they will sue is hard to judge. You should seek specific advice from an attorney licensed in North Carolina who has experience helping people with financial problems, such as a qualified consumer bankruptcy attorney. I'm assuming this title loan was obtained in South Carolina since you live in the Charlotte area and "title loans" are illegal in North Carolina. Go speak with a local consumer bankruptcy attorney, most experienced ones in that area are likely familiar with the title lenders across the state line.

A: If you received a title back without a lien, this could create a complex legal situation. The title company may have made a clerical error, but they still have legal rights to pursue the debt through other means, even without the lien on the vehicle.

Given your financial difficulties, the title company could potentially take several actions. They might file a lawsuit to recover the loan amount, obtain a court judgment, or seek wage garnishment. They could also report the unpaid debt to credit bureaus, which would negatively impact your credit score and make future borrowing more difficult.

Your best course of action would be to contact the title company immediately to discuss the situation. Being proactive and honest about your financial challenges might help you negotiate a manageable payment plan or work out a modified agreement. If needed, you might want to consult with a financial advisor or legal counsel to understand your rights and options fully. Remember that avoiding communication typically makes the situation worse, while staying in touch and showing good faith can often lead to more favorable outcomes.