Understanding Full Satisfaction of a Vehicle Loan in Vermont

Disclaimer: This information is for educational purposes only and does not constitute legal advice. Consult a qualified attorney to address your specific circumstances.

Detailed Answer

To confirm that a vehicle loan is fully satisfied under Vermont law, an administrator should take the following steps:

1. Obtain the Lien Release from the Lender. After you make the final payment, the lienholder must issue a written release of lien. Under 9 V.S.A. § 2462, the lienholder must send a release to the Vermont Department of Motor Vehicles (DMV). 9 V.S.A. § 2462
2. Verify the Certificate of Title. Request a certified copy of the vehicle’s title from the DMV. The “Lienholder” section should be blank or indicate “None.”
3. Review the Final Payoff Statement. Ask the lender for a final loan statement showing the payoff date, amounts applied to principal, interest, and fees. Confirm the “Outstanding Balance” is $0.00.
4. Search UCC Filings. Use the Vermont Secretary of State’s UCC online search system to ensure no active financing statements (UCC-1) remain against the vehicle’s VIN.
5. Request a No-Lien Certificate. You can order a title history or no-lien certificate from the DMV to document current lien status.
6. Obtain Written Confirmation from the Lender. Contact the bank’s title or records department and request written confirmation that they have closed the loan account and released all liens.
7. Follow Up with the DMV if Needed. If DMV records still show a lien after you receive the release, submit the lien release document with a lien release application form to correct the title record.

Helpful Hints

• Keep digital and paper copies of all payment receipts, payoff statements, and correspondence.
• Send any lien release requests via certified mail and retain proof of delivery.
• Verify that names, addresses, and the VIN are accurate on every document.
• Allow 4–6 weeks for DMV processing of title updates.
• Consider hiring a title search professional to audit UCC filings and title status.