question regarding loan/lien

[miss puff]

here is the situation.

Loan with Citi for $8,000
Citi has lien on auto worth $2,000 (upside down)
The car was not purchased with the 8,000 they just wanted title to the car.

Well..... on my credit report it says that it is unsecured and instead of saying IIB, it says closed (paid). So... ummm... Did I just walk away with a car? While part of me thinks it might be awesome to have the car and not have to pay on it, another part of me thinks that's kind of all sorts of wrong to not have to pay on it.

Anyone go through something like this? Are they just biding their time and going to sneak it away in the middle of the night?

Thanks

[HHM]

I didn't know Citi did title loans?

[miss puff]

well they got mine. Says so right on my copy of the title *goes to check, just to make sure*

[miss puff]

Yep! Says:

First Secured Party
9/17/04
Citifinancial Services Inc.
Address
Total Liens: 1

That's what it says.

[miss puff]

So, does anyone have any idea?

[emoney]

When a security interst is given to property, the lien holder has to right to sieze the property if the loan is not paid. This is true for real estate, cars, and other items that may be pledged as security for a loan.
From what you have said City would not loan you $8,ggg without more security than your promise to pay based on your signature. So, they required and you gave them a security interest in your car.
You loan may be cross pledged to other loans with them, which means a default on one triggers defaults on the others.
Thanks,
emoney

[krobin02]

Yes, Citi does loans. They were one of the creditor that I included in my bk.