Auto loan purchase

27 Aug
Phillip D Freeborn asked 6 months ago

Hello. I went through a bank to purchase a truck with an auto draft check. I got all the paperwork signed and receipts for proof of purchase. However the dealer I wrote the check to has lost the check and are asking for a new one. As I’ve stated I’ve got all purchase approved receipts and a free and clear title stating I own the truck. The bank the loan was originally through has more or less cancelled the original check and made it null and void. The dealer says we need to resign and get a new check wrote and overnighted to the dealer. What do I do from here? Am I free and clear and now own the truck? Or do I legally need to resign and continue on with a new loan. 

1 Answers
Dave Alden answered 6 months ago

Hi Phillip, In general, when a check is lost it is customary to have the bank cancel that check and issue a replacement one. Obviously the bank would verify the “lost” check hasn’t been presented and paid; and they’ll follow their procedure to make sure the original, lost check isn’t paid in the future if it re-surfaces. As for re-sgning everything, I’m a little skeptical as to what’s really going on and would proceed with caution. Sounds like there might be more to the story. You might consider having a lawyer take a look at the paperwork. If you know someone, great! If not, join a legal plan to get individualized advice and document review.