Dealer hasn't paid off your trade-in or sent your title?

When you trade in a car you still owe money on, the dealer agrees to pay off that loan as part of your deal. But until the money reaches your old lender, the loan is still in your name.

Georgia's consumer protection office puts it plainly: if the dealer doesn't pay off your loan, you're the one responsible to the lender, even though the dealer has the car. Missed payments can hurt your credit, and the lender could repossess the car. Utah's law even makes dealers tell you in writing that you're still responsible for the old loan.

• Make each payment on time, the way you always have, and save the receipts.
• Ask your old lender how it will refund anything you pay after the dealer's payoff arrives.
• Don't cancel the old car's insurance yet. Georgia's consumer office says you're also responsible for keeping it insured while the loan is unpaid. Ask your old lender what it requires.
• Keep a list of every payment and fee. If the dealer was late, ask it in writing to pay you back. In Utah, if the payoff goes up because the dealer missed the 21-day deadline, the dealer owes the extra.

1. Find the payoff in your paperwork. Your contract or deal papers should show the trade-in and how much the dealer agreed to pay toward your old loan.
2. Call your old lender about a week after the sale. Use the number on your statement or the lender's own website. The CFPB suggests asking which department can confirm a payoff, then checking back after one week.
3. Get proof once it's paid. Ask for a letter or statement showing the loan is paid in full and the lien was released. Save it with your sale papers.
4. If it isn't paid, contact your new lender. That's the CFPB's next step. Then write to the dealer (below).
5. Check your credit reports. If a late payment on the old loan shows up, ask the old lender to work with you. If the report is wrong, dispute it with both the credit bureau and the lender that reported it, as the CFPB explains.

Some states give dealers a set number of days to pay off your trade-in. Three examples, from each state's law:

• California: 21 calendar days after the dealer takes your trade-in. The dealer can't sell or transfer your old car until it pays (Vehicle Code §11709.4).
• Utah: 21 calendar days after the sale, or 15 days after the dealer is paid in full for the car you bought, whichever comes first. If the dealer misses the deadline and you lose money because of it, you can sue for your losses, plus court costs and reasonable attorney fees (Utah Code §41-3-402).
• Florida: 10 working days after the dealer takes ownership of your trade-in (Florida Statutes §319.24).

Rules vary by state. If yours isn't listed, ask your state motor vehicle agency or attorney general's consumer office whether your state sets a deadline. Either way, hold the dealer to the payoff promise in your contract.

If the dealer is handling your title and registration, ask when it filed the paperwork and when your plates or title should arrive. Two states' deadlines, as examples:

• California: the dealer must send the DMV your registration application and fees within 30 days of the sale for a used car, or 20 days for a new one. Temporary plates are good until your plates arrive or 90 days after the sale, whichever comes first (Vehicle Code §4456).
• Florida: the dealer must apply for the title in your name within 30 days after you take the car (Florida Statutes §319.23). Florida's motor vehicle agency says to report problems getting your tag and title right away, using form HSMV 84901.

Write down the date your temporary tag expires. If you don't have plates a week or two before then, call the dealer and your state motor vehicle agency and ask what to do so you can keep driving legally. Ask the dealer in writing what's holding up the title and when it will be done.

If calls aren't working, put it in writing. A dated letter or email gives you a record to attach to complaints later. Include:

• Your name, the date of sale, and the deal or stock number from your contract.
• Your trade-in's year, make, model, and VIN, and your old lender's name.
• What the contract says the dealer would pay, and what's happened since: payments you've made, late fees, and anything still missing.
• What you want, by a specific date: pay off the loan and send you proof, pay you back for the payments and fees, or deliver your title and plates.
• That you'll file complaints with your state's dealer licensing agency and attorney general if it isn't fixed by then.

Send it by certified mail with a return receipt so you can prove it arrived. You can email a copy too. Keep a copy for yourself.

• The state agency that licenses car dealers. Utah's DMV, for example, has a dealer complaint form, and Florida takes title and tag complaints on form HSMV 84901. Find your state's motor vehicle agency and ask who licenses dealers.
• Your state attorney general or consumer protection office. The CFPB names the attorney general as a place to turn when a trade-in loan still isn't paid. Find yours on USA.gov.
• The CFPB, for lender problems. For example, your old lender reports late payments or won't work with you, or your new lender won't help. Submit a complaint and choose “Vehicle loans or leases.”
• The FTC. The CFPB also points to the FTC. Report the dealer at ReportFraud.ftc.gov.

If the dealer arranged your new loan, the FTC's Holder Rule requires your loan contract to say that whoever holds it is subject to the claims you could make against the dealer, up to what you've paid on the loan. Georgia's consumer protection office suggests sending your new lender copies of the paperwork showing the dealer promised the payoff, and talking to a lawyer about how this rule applies to you.

Keep your contract, payment records, the lender's statements, your demand, and every reply together. If you bought from a private seller who still owed money on the car, see what to do if you find a lien after you buy.