Two Options When a Bank Loses a Vehicle Title

A common situation is when a debtor pays off the loan and the bank cannot find the title. What is needed is a duplicate title. In most states there are typically two options; debtor or bank.

1. The debtor option results in the bank giving the debtor the lien release and he can then apply for the duplicate title himself.

1. The Bank Option requires the bank to apply for the duplicate title. There are states that allow the lien holder to request a duplicate title without debtor’s consent. Most states require a Power of Attorney from the registered owner to acquire the duplicate title. As a collection manager, you, have to report current mileage in most states as well as lien release if applicable.

Generally only one Power of Attorney is needed regardless of how many owners appear on the title.

Be very careful when reporting mileage on a duplicate title and understand that all duplicates render previous titles null and void so that if you get a duplicate but find original then original is worthless.