Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
When a vehicle loan shows a zero balance, an administrator should confirm the lender removed its security interest and updated public records in Ohio. Follow these steps:
1. Obtain a Payoff Statement
Request a written payoff statement or final account ledger from the lender. Verify it shows a zero balance and the date payment cleared.
2. Review the Title Certificate
Under Ohio Rev. Code § 4505.181, a lienholder must release its lien on the certificate of title once the debt is satisfied. Obtain a copy of the certificate from the lender or from the Ohio Bureau of Motor Vehicles (BMV). Confirm the “Lienholder” field is blank or marked “Released.”
Statute: Ohio Rev. Code § 4505.181.
3. Check UCC Termination Filings
The lender must file a UCC-3 termination statement with the Ohio Secretary of State within 20 days after payoff. Search the Ohio UCC Public Search for a termination entry on the vehicle’s VIN. A termination statement indicates the security interest is formally released.
Statute: Ohio Rev. Code § 1309.5101.
4. Order a Title History Report
Request a title history or vehicle status report from the BMV. Confirm no liens appear in the chain of title after the payoff date.
5. Obtain Written Confirmation
Ask the lender for a lien-release letter on its letterhead. Keep this as an administrative record.
6. Verify with Third Parties
If the vehicle was financed through an auto dealer or finance company, confirm both entities have processed the release.
Helpful Hints
- Keep copies of all payoff statements and lien-release letters in your file.
- Check public records periodically in case of delayed filings.
- Use the VIN when searching both the BMV and UCC databases.
- Confirm the lender’s contact details in case follow-up is needed.
- Consider a binder or electronic folder to track date-stamped documents.