Happy new year folks! OK, this might be a dumb question but I recently noticed on my registration card that I still had the name of the credit union under lienholder, even though the loan has been paid off for a few years now. I called the credit union, and they said they have to send me a lienholder release form and I have to take out to the DMV and pay a transfer fee. For some reason, I thought this was automatic and that the DMV would get notified once the lien has been paid off. Since the credit union already sent me the title, do I really have to do this if I don't plan on selling the car?

 

Depends upon the state. You don't mention what your title says which is all that matters. Did you ever received the title? In NC (one title state), the lien holder has possession of the title until the loan is paid, They (lien holder) then mails the vehicle owner the title with a notation saying the loan is paid. This title can then be used to transfer the vehicle to a new owner or if you prefer, a duplicate title may be requested from DMV. In NY (two title state),both the lien holder and the vehicle owner receive dirty titles. After the loan is paid off the lien holder sends you their copy with the lien released. Again, this title can be used to transfer the vehicle to the next owner.

 

I am in California. The title under "lienholder" still has the name of the credit union. Yes, they sent me the pink slip when I paid off the loan years ago.

I have a one page letter that has the original loan amount and says "paid in full". That's the lien release document?

 

This happen to me in New York I had to get a release from the bank and
Mail it to the DMV

 

I am in California as well. I just payed off my 2016 GT, The Bank sent a release to the DMV and a letter stating the loan was paid in full. The DMV then sent me a clean pink slip.
Ron

 

Regardless of "necessary" or not, just get it done. I know I wouldn't want that on my paperwork.

 

In New York you can just get a Release of Lien and give the next owner the current Title and Release when you sell the car. However, with banks and credit unions merging relatively often, the paper trail of your loan can be murky. Best to get a clean title now.