Cant get title/ registration to 2009 prius after payoff

Sounds like time to sue,

also should be able to sue the underwriters for banning non-running cars,
that shouldn’t even be a thing

too much overreach in this society, with laws that say if this one rule is violated they can have your car crushed.

 

You NEED a lawyer.

But the cost of doing that might be more than the car is worth.
I think a salvage yard would LOVE to have it......and might be able to help with the title problem too.

Good luck.

 

Wow! Things like this can really happen? I am so sorry, but I don't know what to say. Yeah, you need a lawyer for this, but the cost may be not worth it. Please keep us updated on whatever happens to your case.

 

The only thing I can think of is letting your local representative know about this.
Perhaps it was just an error with the vin number or perhaps it was fraud internally.
Whether with the DMV, the auction or the wholesaler

However, im sure nothing would come out of it, and to do anything with a meaning
would require a HUGE amount of money with a lawyer.

Sorry that this happened.
Maybe someone has been thru this before or can give better insight to what can be done.

 

Seems odd that a bank/finance company would loan on a vehicle/title if it was not loanable, or had 'no real value' if repossessed. Curious if there was a "title search", a CarFax, or some other type of "title insurance" that they omitted from their lending process. You might start at the bottom, as they took 60 months of payments from you.

One would assume that if you (or a business) paid for a CarFax, then CarFax should cover the errors and omissions issue. Though this randomly searched article reads otherwise.

Here is the CarFax Buy Back Guarantee (and fine print) : The CARFAX® Buyback Guarantee®

Reading the CarFax fine print reveals this small snippet, and claims CarFax has an out :

Specifically excluded from the definition of "Branded Title" for the purposes of this CARFAX Buyback Guarantee are:

• titles originally issued without a brand but later stamped with a brand without being reissued;
• salvage titles issued due to theft;
• damage disclosure documents and Branded Titles issued in error and later corrected.

Try sending CarFax support your concerns, and inquire about : "I would like to learn more information about a vehicle’s history, such as the names of the previous owners or more details about an accident or damage event".

They may not give you the prior chain of ownership details, but you might find out who reported the branded title and when. Then contact the State Attorney General (and related governing agencies to the above ownership chain that included the rental company, the wholesaler/auction house, and your finance company) and see what can be done, as this sounds like shananigans on the part of the rental company (or their insurance carrier if they knew about the accident or subsequent branded title requirement), the wholesaler or auction house (was is sold as-is or otherwise?), or the bank finance division (for lack of due diligence, etc). When all is said or done, one (or all) of these entities should at the very least have a bad mark placed in their files, or at the extreme have any appropriate licensing removed.

CarFax might also be interested (even if they have no interest in making good on the situation), as one or more of the above parties most likely had a CARFAX business subscription at each stage of sale.

In addition to heeding this excellent advice :

Also consider making contact with one of the local TV news outlets who promote consumer protection and investigation, some in the San Antonio or Houston area might be called "On your side".

Please let us know how this turns out.

 

In Wisconsin if you buy a car in good faith but someone upstream committed fraud you just
Contact the Madison DMV and open a case
Fill out the form
send proof you bought the car
And months later you get to have license plates but no title

the buyer is not held liable


Hmmm

[email protected]

TxDMV.GOV - Contact

 

I don't know how the laws work in Texas, but this is where I see the fraud against you occurring... The bank has an accomplice at the DMV that tampers with your title and gets it illicitly changed to non-repairable brand, then the car is paid off and once you give up, the bank has a scam planned to reclaim the vehicle, then they get the title restored to the original one and sells your car. With the way they give out car loans these days, this bank could make alot of money with a scam like this.

If you can hire a private investigator to research this, then if it starts to look like what happened, time to Lawyer up. For starters get as much dirt as possible on the bank. Scams like this are not easy to hide if you know how to look for them.

 

Just curious, how does this scheme work? The car is paid off. Even if the bank is in it, how can the bank "reclaim" the vehicle from the current owner?

 

Like I said, I don't know the laws and loopholes related to title fraud, but the bank doesn't make a loan on a bad title... Yet this bank not only didn't mail a red title, but it also claims that the title after the loan was paid off was lost in the mail and when the lost title claim was denied by the DMV, the bank still owns the vehicle, still holds the original title to the vehicle even though legally the bank has to release the title because the loan is paid off. But they found a way to not do this by committing title fraud with the DMV. At some point the bank is going to move on the second part of the scam and get the car that they own back from the person who paid for it and get the erroneous designation wiped from the record. Or maybe it's just a spiteful employee at the bank who hates Prius owners?

 

Lastly, the bank doesn't really need the vehicle, as long as they fail to return a valid title once the car is paid off and ensure that the title can't be changed, they can keep using the value of that title in their fraudulent bookeeping schemes...

 

@sam spade 2 makes a good suggestion to get legal advice. Whether the problem was an administrative error at the Texas DMV or fraud by the sellers of the car, there may be deadlines for filing a suit or claim.

That’s just not so, and the Texas DMV’s Salvage/Nonrepairable Motor Vehicle Manual (PDF) has an entire chapter (“Replacements, Errors, and Innocent Purchasers”) describing the various ways in which mistakes can be corrected. See especially section 8.5, starting on page 8-5 (PDF page 69). There is also a procedure for a hearing before the county assessor-collector, and a further appeal to a court, within a very short deadline; see Texas Transportation Code section 501.052, but see also sections 501.0521 and 501.110.

It would be helpful if you had a copy of the certificate of title you received from the previous owners, showing that there was no “salvage,” “non-repairable,” or similar brand on the title at the time you bought the car. If you don’t have a copy, perhaps the bank could furnish one, even if you have to pay them a fee to search their records; it’s not unusual for documents like that to be scanned or microfilmed.

This wouldn’t be an original, of course, nor conclusive proof of anything, but I imagine it could at least motivate Texas DMV to confirm their records, rather than just accepting whatever has been entered into the computer. You could write to the Texas DMV, asking them to explain their position. Can they tell you who applied to change the title to nonrepairable and when, or better yet, produce a copy of the application form (VTR-441, Application for Salvage or Nonrepairable Vehicle Title) and the supporting documentation submitted by the applicant?

 

I once went to a junkyard....

Grabbed a VIN# off an old parts car. Used that VIN for the one I needed titled. Not implying this is the right thing to do.... I was a kid then.

 

I’ve never registered a car in Texas, but in many other states a salvage title does not prevent you from registering or operating a vehicle. The branding of the title is permanent, but usually all it means is reduced resale value and higher insurance premiums for the remaining life of the vehicle.

So…

First doublecheck the ramifications of a Texas salvage title. Why else would such a title exist if the vehicle couldn’t be used as a vehicle?

Then get your local attorney general involved.

 

Before you throw in the towel, take 10 minutes to call your local representative office
to give them the story, and they could at least say they can or can't do anything for you.
Seems like it may be worth the 5 to 10 minutes.

I am leaning towards internal error somewhere.

There may or not have been fraud ....almost doesnt matter, but could help pinpoint the reason,
which may help along getting it straightened out.

*someone is in an accident, gets totaled, insurance pays out, someone collects money, someone collects car,
someone fixes car. title never updates or gets recorded, car gets sold at wholesaler, auction, whomever,

*or who knows, maybe car was never in accident, but with a few people in the line fraud may
have been collecting a "totaled" car payout and then getting rid of the evidence before the title finally updates
before being sold to final owner? seems like a stretch but never know

Title finally catches up way back when, but doesnt get found out until a transfer or duplicate request occurs.

Fraud or no Fraud?
It is your call if you want the car or not.

 

For starters call the state dmv (not your local one)

ive been through a similar situation in Wisconsin,

the local dmv lied, and didn’t understand the law.

I bypassed them and called the state dmv told them I suspected that some type of error or even fraud occurred.

it took months, 3 phone calls and 3 sets of paperwork and I got my license plates in the mail after they figured out there was fraud committed between a dealer and a auction house.

at no time did I spend money or get an attorney (besides postage)

The DMV takes fraud and notary errors seriously and will pursue it for you if you contact the correct entity.

DO NOT BEND OVER AND TAKE IT.

Fill out the forms and be a little noisy first, also don’t bother with the local DMV, past experience says they know about as much as the Walmart greeter on legal matters.

 

Don't overlook the actual Texas procedures that Elektroingenieur posted in #12. At least be sure to find out what those deadlines are.

 

Maybe there's more to the story... But Navy Federal Credit Union approved a loan for a car with a clean title. Then they failed to send the owner a red title until the loan was paid off, then they failed to send the title to the vehicle after the loan was paid off and claimed it was lost in the mail. Then when the owner tries to file for a lost title suddenly the car no longer has a clean title?

If this is what's really happened and it was my car I'd be camping out at the credit union and refusing to leave until they took responsibility for fixing this problem and if they refuse, I'd pull out state laws related to title fraud and explain that I need as much information as possible because I"d like to explain to their Board Of Directors that the person in charge of the auto loan department has in effect stolen your car at worst, or gave a loan for a car without a valid title at best. Make heads roll until they fix it! This is their fault on so many levels!