Wells Fargo dealer services wants to be lienholder?
I recently got a 2009 Infiniti fx35. The bank that gave me the loan was Wells Fargo dealer services. Now, they want to be listed as lienholder on my Progressive insurance. Is this something that is legit? Do all banks do this? I had another 2008 Acura Mdx on Chase bank. Chase never asked to be lienholder. I just don't understand how I pay the money for the insurance but the bank gets the money. I know the bank technically owns the car.
- Gatsby216Lv 76 years ago
Yep, normal. Maybe Chase did not care at that time, or just did not ever do the processing on that item, or you bought VSI (vendor security insurance), which is an insurance policy you pay for when you get the loan, but if the car is totaled and you don't have insurance then they get paid for the loan amount (not the car value).
Or in Ohio most policies state the insurer will pay off any lien holder first, so the insurance company would check with the dmv and pay off the loan anyway. I am not sure if is the law or just common practice.
- Anonymous6 years ago
Yes they have a lein over the car until you have paid off the loan. It's technically your car, but you can't sell it without paying off the loan first. They want this registered at the insurance company, so that if the vehicle is written off in an accident, they get paid first, then you get paid anything that's left.
All it really means is that you are telling the Insurance co that there is a loan on the car, and that means they will contact the bank and clear the loan for you if needed.
- Stupid FlandersLv 76 years ago
Completely legit. If you total your car, Progressive writes the check directly to Wells Fargo to cover their invested interest in the loan. Until you pay off the car, they own it. It's reasonable they want to get paid to cover the loan risk if you total it.
And if you don't agree to it, they can rescind your loan.
The bank only gets the insurance money while it's their property. Once you pay off the car, then you would get the money. Insurance is protecting you because it pays off the bank in the event of an accident. Without insurance, if you totaled a car, you would have a worthless car and would still owe your loan amount to the bank. Make sense?
- AlCaponeLv 76 years ago
Yes, it's legit and most common. If your car is totaled, the insurance pays off your loan and you get anything left over. On the other hand, if you are upside down on your loan (the insurance doesn't completely cover your loan balance), you'll have to come up with the cash difference to pay off the loan. GAP insurance protects you against this possibility.
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- 5 years ago
I paid my car off through Wells Fargo dealership, just noticed this year they are still listed as lein holders, I finally got a letter releasing lein to me, but states date paid off was 2015?shouldnt this have been sent to dmv electronically ? I've never had to pay fees to take a car after paying for it! Also I read that in ca after a car is paid in full the bank has 3 days business days now it states car was paid off in 2015 and not 2012 and I have to pay dmv! I've bought and paid off many cars and never had to do this, I also want paper to state when I paid it off it just states ns
- 4 years ago
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- maryLv 44 years ago
I'm a guy, and privately, I don't like long nails. We know a lot of like lengthy, painted nails cause they're "so pretty", but I don't like them.
- Anonymous6 years ago
Yes, they loaned you the money to buy the car, thus they have an ownership interest in your vehicle until you pay the loan off. It's standard in any auto loan.
- hotstuffktrLv 66 years ago
Yes, this is something that is legit. They should be on the back of your car's title, too - FYI.