Consumer complaint received 2025-04-08 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Problems at the end of the loan or lease — Unable to receive car title or other problem after the loan is paid off
Company: WELLS FARGO & COMPANY
State: TX

Complaint narrative:
* * Year : * * XXXX * * * Make : * * XXXX * * * Model : * * XXXX * * * VIN : * * XXXX As you are aware, this vehicle was deemed a total loss in XXXX, resulting in the issuance of a * * salvage title * *. At that time, the insurance proceeds were processed, and to the best of my knowledge, any outstanding balance on the loan was settled. Furthermore, I understand that Wells Fargo likely wrote off any remaining debt associated with this vehicle as a tax write-off in the subsequent tax year ( XXXX ). 

It has also come to my attention that Wells Fargo Auto also * * sold any remaining alleged debt associated with this vehicle to a collection agency * *. 

* * Relevant Legal and Regulatory Information : * * * * Texas XXXX : * * While Texas XXXX XXXX principles of * * Texas Certificate of Title Act ( Texas XXXX XXXX, Chapter XXXX ) * * govern the ownership and liens on vehicles. Specifically : * * * Texas XXXX XXXX XXXX ( Release of Lien XXXX : * * This section outlines the general procedure for releasing a lien once the debt is satisfied. While our situation involves a total loss and likely a tax write-off rather than a traditional satisfaction of debt through payment, the underlying principle of clearing encumbrances on a non-existent asset should still apply. The fact that the vehicle now holds a * * salvage title * * further supports the argument that its value as collateral has been significantly diminished, if not eliminated. 
* The continued existence of a lien on a vehicle with a * * salvage title * * that no longer exists in its original form and whose financial obligations have been resolved, potentially through insurance settlement and a subsequent debt sale, creates an unnecessary encumbrance on my records and potentially impacts future transactions. * * Failure to release a lien without just cause can lead to potential legal action in Texas to compel the release and recover damages. * * * * Texas Debt Collection Act ( XXXX XXXX XXXX, Chapter XXXX ) : * * If the alleged debt was sold to a collection agency, that agency is bound by the * * Texas Debt Collection Act * *, which prohibits abusive and misleading collection practices. Maintaining a claim on a vehicle with a salvage title that was a total loss years ago, especially after a likely insurance settlement and tax write-off, raises questions about the legitimacy and fairness of any continued collection efforts. 

* * Internal Revenue Service ( XXXX  ) Considerations : * * * * * IRS Publication XXXX ( Canceled Debts, Foreclosures, Repossessions, and Abandonments ) : * * This publication discusses how canceled debts are treated for tax purposes. When a lender writes off a debt as uncollectible, it is generally considered canceled debt. While this primarily affects the lender 's taxes, it signifies that the financial obligation related to the vehicle has been resolved from Wells Fargo 's perspective. The * * salvage title * * status reinforces the fact that the vehicle 's value has been significantly reduced, justifying the write-off. 
* The fact that Wells Fargo likely claimed a tax deduction for this written-off debt further supports the argument that the financial interest in the vehicle has been extinguished. Maintaining a lien on a vehicle with a * * salvage title * * after claiming a tax loss and potentially selling the debt is inconsistent with the economic reality of the situation. 

* * Notice of Potential Consequences of Refusal to Release Lien : * * Please be advised that if Wells Fargo Auto fails to release the lien on this totaled, salvage-titled vehicle after this formal request, I will be compelled to explore all available legal and administrative remedies to ensure the lien is removed. These remedies may include, but are not limited to : * * * Filing a formal complaint with relevant consumer protection agencies, including the Texas Attorney General 's Office and the Consumer Financial Protection Bureau ( XXXX  ). * * * * * Seeking legal counsel to pursue a court order compelling the lien release and potentially recovering any damages incurred due to the continued encumbrance. * * * * * Notifying credit reporting agencies of the inaccurate lien information. * * * * * If a collection agency is involved, I will also be scrutinizing their collection practices for compliance with the Texas Debt Collection Act and the Fair Debt Collection Practices Act ( XXXX  ). * * Given the circumstances of the vehicle being a total loss in XXXX, holding a salvage title, the likely tax write-off of any remaining debt, and the potential sale of this debt to a collection agency, there appears to be no legitimate reason to continue holding this lien. 

* * Request : * * Therefore, I reiterate my request that you take the necessary steps to * * immediately release the lien * * on the aforementioned vehicle. Please send the official lien release documents to my address listed above.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation