What is my right? The car I bought fully paid cash got repossessed

Hayden1021

Hi, I have 0 debt. I bought a car from a person last October 2019, fully paid in cash. And this morning a couple of repossession guys took the car. May I know what my right is? I did not get any notice. The seller did not mention that she has still unpaid balance to the lending company and I cant reach the number that she gave me.

Michaell

Hayden1021 said:

Hi, I have 0 debt. I bought a car from a person last October 2019, fully paid in cash. And this morning a couple of repossession guys took the car. May I know what my right is? I did not get any notice. The seller did not mention that she has still unpaid balance to the lending company and I cant reach the number that she gave me.

Did you get the title when you bought the car? Did you get it registered through your local DMV? Nothing was flagged at that time?

What state is this?

Hayden1021

Michaell said:

Hayden1021 said:

Hi, I have 0 debt. I bought a car from a person last October 2019, fully paid in cash. And this morning a couple of repossession guys took the car. May I know what my right is? I did not get any notice. The seller did not mention that she has still unpaid balance to the lending company and I cant reach the number that she gave me.

Did you get the title when you bought the car? Did you get it registered through your local DMV? Nothing was flagged at that time?

What state is this?

Yes The car was registered in Alberta. Im from PEI and later found out that the car was bought from British Columbia through financing, and that financing company was the one who issued the repossession warrant.

But they still took the car even though the warrant is intended for the person who sell the car to me. And the car was already registered to me the time they took it. I did not know they can do that.

I got it check from my local DMV same day I bought it, they save it is all good. I even get it registered to my name without any red flag.

I asked the repossession guys how did they found my car, address and my name, and the crazy thing is they said from my local DMV to financing company.

And when I visited my local DMV they said I can't refund the tax and registration I paid for that car. It did not even last for 1 month.

Michaell

Hayden1021 said:

Michaell said:

Hayden1021 said:

Hi, I have 0 debt. I bought a car from a person last October 2019, fully paid in cash. And this morning a couple of repossession guys took the car. May I know what my right is? I did not get any notice. The seller did not mention that she has still unpaid balance to the lending company and I cant reach the number that she gave me.

Did you get the title when you bought the car? Did you get it registered through your local DMV? Nothing was flagged at that time?

What state is this?

Yes The car was registered in Alberta. Im from PEI and later found out that the car was bought from British Columbia through financing, and that financing company was the one who issued the repossession warrant.

But they still took the car even though the warrant is intended for the person who sell the car to me. And the car was already registered to me the time they took it. I did not know they can do that.

I got it check from my local DMV same day I bought it, they save it is all good. I even get it registered to my name without any red flag.

I asked the repossession guys how did they found my car, address and my name, and the crazy thing is they said from my local DMV to financing company.

And when I visited my local DMV they said I can't refund the tax and registration I paid for that car. It did not even last for 1 month.

Do Canadian provinces issue vehicle titles with their cars? I assume so, which makes me question the fact that you didn't receive one when you made the purchase. Does the finance company have physical possession of the title, and clear documentation that the lien exists?

If the answers to the above questions are yes, I'm not sure what recourse you have.

Michaell

Michaell said:

Hayden1021 said:

Michaell said:

Hayden1021 said:

Hi, I have 0 debt. I bought a car from a person last October 2019, fully paid in cash. And this morning a couple of repossession guys took the car. May I know what my right is? I did not get any notice. The seller did not mention that she has still unpaid balance to the lending company and I cant reach the number that she gave me.

Did you get the title when you bought the car? Did you get it registered through your local DMV? Nothing was flagged at that time?

What state is this?

Yes The car was registered in Alberta. Im from PEI and later found out that the car was bought from British Columbia through financing, and that financing company was the one who issued the repossession warrant.

But they still took the car even though the warrant is intended for the person who sell the car to me. And the car was already registered to me the time they took it. I did not know they can do that.

I got it check from my local DMV same day I bought it, they save it is all good. I even get it registered to my name without any red flag.

I asked the repossession guys how did they found my car, address and my name, and the crazy thing is they said from my local DMV to financing company.

And when I visited my local DMV they said I can't refund the tax and registration I paid for that car. It did not even last for 1 month.

Do Canadian provinces issue vehicle titles with their cars? I assume so, which makes me question the fact that you didn't receive one when you made the purchase. Does the finance company have physical possession of the title, and clear documentation that the lien exists?

If the answers to the above questions are yes, I'm not sure what recourse you have.

We have some regular posters on these boards from Canada; I've asked them to join us and offer their opinion.

ab348

It is quite possible that the lien holder (the BC finance company) has every right to the car. A vehicle is considered personal property and as such can be used as security for a loan (such as the one used to buy the car). That encumbrance attaches to the vehicle and does not disappear when the car is sold until the loan is repaid and the lien satisfied. When titles are changed at DMV offices they do not do a personal property lien search, although there MAY be a statement printed on the title transfer form that is signed by the seller stating that the vehicle is free and clear of any encumbrance. So a title alone is no guarantee of an unencumbered asset.

Your recourse is against the individual who sold you the car if they made a false statement. Most provinces maintain a personal property lien registry which is searchable, although in practice it is not commonly done prior to purchase by private parties. You are trusting the word of the seller. Your option now is to go after them. It is possible that if they repaid the loan that the lien has not been released at their provincial registry due to oversight or other reason, although that seems unlikely unless the lender is very slow in updating things.

Hayden1021

Canada doesn't use titles. We use Bill of Sale only. I think I can't go after the financing company that repossessed the car. It is the sellers fault. Can't even contact her anymore I'm suspecting that sheknew their car will be repossessed sooner that is why she sell it. She might use an alibi that they does not know that she still owe the financing company. But is it even possible that she did not know that she still have remaining balance? I'm pretty sure that she got emails or calls of due date notice for not paying at least in 3 months. Is there any way to get my money back? Do you guys think I should talk to a lawyer? But just a public lawyer.

I already went to police HQ and filed complaint and they took my statement. They told me that they will call me when they finish classifying my case whether it is a criminal case or just a civil case.

Some says I'm a victim of fraud, some says it is my fault and I should just give up on trying to get my money back. The money I lost in buying that car is equivalent to two and a half month worth of work, 8 hours a day, 6 days a week.