Detailed Answer
When an administrator needs to confirm that a vehicle loan has been fully paid under Georgia law, it involves obtaining specific documents and checking official records. Below are the key steps.
1. Request a Payoff Statement from the Lender
Contact the lender or secured party and request a written payoff statement. This document will show the total amount due, the date it was issued, and confirmation that no balance remains after payment. Keep this statement for your records.
2. Obtain the Lien Release or Satisfaction of Lien
Under Georgia law, once a secured party accepts full payment, it must release its lien on the vehicle title. See O.C.G.A. § 40-2-23 (Lien becomes void upon filing a release with the department): law.justia.com/codes/georgia/2022/title-40/chapter-2/article-2/section-40-2-23/. Ask the lender for a copy of the executed lien release or satisfaction of lien document.
3. Confirm Title Status with the Georgia Department of Revenue
Once you have the lien release, verify that the Georgia Department of Revenue (DOR) has updated its records. You can:
- Use the DOR’s Motor Vehicle Online Services to check title status: dor.georgia.gov/motor-vehicles.
- Contact a DOR Title Adjudication office to request a printout showing that the lien is removed.
4. Check UCC Termination Filings
If the loan was secured under the Uniform Commercial Code (UCC), the secured party must file a termination statement after payoff. See O.C.G.A. § 11-9-513 (Termination statement by secured party): law.justia.com/codes/georgia/2022/title-11/chapter-9/article-9/section-11-9-513/. You can search the Georgia UCC Public Notice Registry to confirm the termination of the financing statement.
5. Review Payment and Bank Records
Cross-check the payoff statement against your transaction records. Ensure the amount matches your wire transfer or cashier’s check and that the lender’s bank accepted the full payment.
Disclaimer
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney to address your specific situation.
Helpful Hints
- Keep all documents in one folder: payoff statements, lien releases and bank confirmations.
- Note dates on every document to track deadlines for filing with DOR or UCC registry.
- Use certified mail or tracked delivery when sending lien releases to DOR.
- Verify DOR receipts before assuming the lien is removed.
- If the lender delays release, follow up in writing and keep copies of all correspondence.