Location: Columbus, OH
Bought a new pick up truck back in 2017, when I was young and dumb, was making monthly payments of around $700. Few years went by, found sports betting, ran up my credit cards, had no money. Fell into a death spiral of debt and just stopped paying everything in 2023. Moved to Columbus and got a new job, started making better money, settled with all the credit cards companies and paid off all that debt in early 2024. Fast forward to current day, I got another new position this year and now make considerably more money now, I save and invest 90% of what I make. I still hadnt paid off the truck loan because I figured it’s been two plus years since it went to collections, on toyota financials website it says the account is closed, and all my other debt is gone, and I was just going to give it to my parents for a knock around vehicle and keep it in my name and the collection efforts stopped months ago. The loan address was registered to my parents house when I still lived there so it never got repossessed because they couldnt find it.
I brought it up to my dad that Ive been thinking about getting something new and he wanted me to see what the dealership would give me for a trade in. I spoke to them and explained the unpaid loan and they said that they would pay off the remaining and then put the rest towards my new vehicle if it was more then the outstanding debt.
Yesterday I called toyota financial who owns the loan and not only did they tell me that the truck was fully paid off in November of 23 but that it never went to collections. When I asked where the title was they said they sent it to the dealership which I bought the vehicle from back in 2017 which didnt make any sense to me. I mentioned that that may or may not be possible because I may or may not have paid it off and they said they would speak to other departments and get back to me. I then called that dealership and they said they did not have the title nor would they have gotten it because that made no sense because they didnt buy it back from me and there must be an error on toyota financial’s part. Anyways toyota financal called me back and confirmed that it was paid off and it never went to collections. I called the dealership where I want to buy a new vehicle and do a trade in and explained the situation and they said they would be able to get a new title for me and figure it out and that this was not a first for them.
So my questions are, how is this even possible? Am I off the hook for the loan? I believe it’s on my credit report and Id like that to fall off but i dont know how if there’s no loan. Do I have to keep the truck forever now or can the dealership really get a new title from the DMV so I can trade it in? Just not sure how this works legally.