American Car Center Title & Lien Problems Possible

A recent Fortune Magazine article has sent shockwaves through the automotive industry, shedding light on a subprime auto lender, American Car Center, going out of business. This raises a red flag for hundreds of car buyers who may find themselves in a perilous situation, having paid off their vehicles but left without titles. In this blog post, we dissect the magnitude of the issue, its implications for consumers, and provide guidance on navigating the aftermath.

The Subprime Auto Lender Collapse

  1. American Car Center’s Financial Fallout:
    • American Car Center, a subprime auto lender, abruptly closed its doors, leaving 288 employees without jobs and a $222 million Bond sale canceled.
    • The closure raises concerns about the fate of thousands of customers who may face title issues, given that the lender holds titles until the final payment is made.
  2. Scope of the Problem:
    • With 40 dealerships spread across 10 states, American Car Center puts thousands of vehicles on the streets each month.
    • Even a conservative estimate of 1,600 cars per month across all dealerships indicates a potential title problem for 20,000 customers annually.

Immediate Action for Consumers

  1. Risk Assessment for Buyers:
    • If you purchased a car from American Car Center or any dealer facing financial woes, assess the risk of not receiving your title, especially if the dealer has gone out of business.
    • Act promptly to safeguard your vehicle and financial investment.
  2. Legal Guidance and Licensing Board Filing:
    • Seek legal advice immediately to understand your options and protect your interests.
    • Consider filing a complaint with the licensing board to ensure your case is documented.

Filing for a Court Order Title

  1. Early Initiation of the Process:
    • To secure your title and potentially cease further payments, file for a court order title, also known as a magistrate title or civil lien title.
    • This proactive step ensures you are at the forefront of potential victim restitution funds.
  2. Navigating Title Issues:
    • Recognize the urgency of addressing title problems, as the sudden closure of the lender may leave a void in the processing of titles and lien releases.
    • Act swiftly to avoid being caught in bureaucratic complications.

Community Awareness and Support

  1. Sharing Experiences:
    • Encourage affected individuals to share their experiences in the comments section to foster a community dialogue.
    • Support and guidance from those facing similar challenges can be invaluable during such crises.

The collapse of a subprime auto lender, especially one with the scale of American Car Center, sends ripples through the automotive community. Buyers who have paid off their vehicles but face title uncertainties must act promptly to secure their assets. Filing for a court order title and seeking legal counsel are essential steps to navigate this tumultuous situation. As we await further developments, let this be a call for vigilance and community support during a time of unexpected challenges in the auto financing landscape.

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