Detailed Answer
As an administrator in Wisconsin, you must confirm that a vehicle’s outstanding loan is fully paid before transferring, selling, or distributing it. Follow these steps to verify full satisfaction of the debt:
1. Obtain a Final Payoff Statement
Contact the lender and request a written payoff statement. This document specifies the exact payoff amount and the date through which interest is calculated. Ensure the statement shows a zero balance after payment.
2. Secure a Lien Release from the Lender
Under Wis. Stat. §342.17, when a vehicle loan is satisfied, the secured party must release its lien on the certificate of title. Ask the lender for a signed lien release or lien satisfaction letter. Keep the original document for your records and future DMV filings.
Wis. Stat. §342.17
3. Check the Wisconsin DMV Title Record
Use the Wisconsin Department of Transportation (DOT) online services or visit a local DMV office to confirm the lien release appears on the vehicle’s title record. A clear title should show no active liens. For online title inquiries, see Wisconsin DOT Online Services.
4. Verify UCC Termination Statement
If the lender filed a UCC-1 Financing Statement with the Wisconsin Department of Financial Institutions (DFI), the lender must file a UCC-3 Termination Statement under Wis. Stat. §401.503. Search the DFI’s UCC database to confirm the termination filing. A termination statement shows the lender released its security interest in the vehicle.
Wis. Stat. §401.503 • Wis. Stat. §401.509
5. Obtain a Clear Certificate of Title
After verifying the lien release and UCC termination, apply for a new certificate of title in your name (as administrator) or in the name of the estate. Ensure the title lists no lienholders. File Form MV1 with the Wisconsin DOT and include the lien release document.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For guidance tailored to your situation, consult a licensed attorney.
Helpful Hints
- Keep all payoff statements, lien releases, and UCC filings together in a dedicated folder.
- Double-check spelling of vehicle identification number (VIN) on all documents to avoid processing delays.
- If the lender delays issuing a release, send a certified letter requesting the lien release under Wis. Stat. §342.17.
- Consider ordering a DMV “record of title” printout to see all liens historically recorded on the vehicle.
- Follow up with the DOT if your new certificate of title does not arrive within 60 days of application.