Consumer complaint received 2025-02-17 00:00:00
Product: Vehicle loan or lease — Lease
Issue: Problems at the end of the loan or lease — Problem while selling or giving up the vehicle
Company: CAPITAL ONE FINANCIAL CORPORATION
State: IN

Complaint narrative:
To Whom It May Concern, I am writing to formally request the removal of the lien associated with my vehicle and the issuance of a clear title in my name. Below are the details of the vehicle in question : XXXX : XXXX Year/Make/Model : XXXX XXXX XXXX Lienholder Name XXXX XXXX XXXX  Legal Basis for My Request Under Indiana law and the Uniform Commercial Code ( UCC ) Article 9, a lienholder must satisfy specific requirements to perfect a security interest in a vehicle. Without perfection, the lienholders claim becomes invalid and unenforceable. Failure to Perfect the Security Interest According to UCC 9-203 ( b ), a security interest attaches only if the following conditions are met : 1. The secured party has given value. 2. The debtor has rights in the collateral. 3. The secured party has possession of the collateral or a valid security agreement authenticated by the debtor. Further, UCC 9-308 requires perfection for a lienholders claim to be enforceable. This is typically achieved by filing a UCC-1 Financing Statement with the Indiana Secretary of State. Upon conducting a UCC-11 search, I found no financing statement filed by XXXX XXXX  to perfect its claim. Without this critical step, the lien is invalid and unenforceable under UCC law. Impact of Securitization on the XXXX CXXXX XXXX like many lenders, routinely securitizes auto loans. This process often severs the promissory note from the lien, creating a legal bifurcation. In XXXX XXXX XXXX XXXX XXXX XXXX ( XXXX ), the U.S. Supreme Court ruled that separating the lien from the note destroys the enforceability of the lien. If XXXX XXXX securitized my auto loan, its security interest in the vehicle would have been severed, rendering the lien unenforceable under Indiana law. Certificate of Title Statutes vs. UCC Requirements While Indiana Certificate of Title statutes require liens to be recorded with the Bureau of Motor Vehicles, compliance with these statutes does not override the perfection requirements under UCC Article 9. UCC 9-311 ( a ) ( 2 ) explicitly states that recording a lien on the title without perfecting the security interest renders the lien unenforceable. Request for Action Based on XXXX XXXX failure to perfect its lien under Indiana UCC law, I respectfully request the Indiana Bureau of Motor Vehicles to : 1. Release the lien associated with my vehicle. 2. Issue a clear title in my name as the rightful and sole owner of this vehicle. Supporting Documentation To substantiate my claim, I have included the following : UCC-11 search results showing no financing statement filed by XXXX XXXX 
Response Requested I kindly request a response and the issuance of a clear title within 15 business days from the date of this letter. If additional documentation or information is required, please contact me at XXXX or XXXX. XXXX XXXX XXXX failure to perfect its security interest under Indiana UCC law, combined with its likely securitization practices, renders the lien invalid and unenforceable. 

In addition to this, XXXX was placed on my vehicle in XXXX by the Indiana Department of revenue due to old taxes. The taxes were paid via my husbands tax return and the department of revenue has since been requesting the title be sent to them in order to clear the lien on The vehicle to which XXXX XXXX has not responded. I am also requesting that XXXX XXXX be penalized for the last two years. They have failed to send the title to the Department of revenue in order for them to clear the lien on my vehicle, which would have allowed me to trade it in or resell prior to XXXX XXXX  repossession my vehicle because of my inability to pay due to them not clearing the lein which then cause other financial hardships. already put my vehicle through the repossession process and was prepared to auction it off and did not send me a 1099C to then confirm that they had discharge my loan during the repossession.

Company response to consumer: Closed with explanation