Auto Loan Resources

A vehicle title is the legal document that shows ownership of a vehicle. If your vehicle is financed, the title may also list the lender as the lienholder until the loan is paid in full.

Title processes vary by state. In some states, the lender holds the title while the loan is active. In others, the vehicle owner may receive the title, but the lender is listed as the lienholder. Some states also use electronic titles.

For state-specific title and registration information, visit your state motor vehicle agency.

When a vehicle is financed, the lender is listed as the lienholder because the vehicle serves as collateral for the loan. Keeping lienholder information accurate can help avoid delays if you sell, refinance, register or transfer the vehicle.

f your title does not list the correct lienholder, you may need to work with your state motor vehicle agency and/or the dealer you purchased the vehicle from to update the title.

Once your auto loan is paid in full, the lien can be released. Depending on your state, you may receive a lien release, a paper title or an electronic notification that the lien has been released.

Processing times can vary based on state requirements, payoff method and mailing time. To help avoid delays, make sure your mailing address is current with the Credit Union and your state motor vehicle agency before completing your payoff.

A lien release confirms that the lender no longer has a security interest in the vehicle. You may need a lien release after paying off your loan, replacing a lost title, selling your vehicle or updating title records.

To request a lien release, you may be asked to provide information such as:

• Your name
• Loan or account information
• Vehicle year, make and model
• Vehicle Identification Number
• Current mailing address

For questions about your specific loan, please contact Educational System Federal Credit Union.

If you move to another state, you may need to update your vehicle registration and title. Each state has its own process and timeframes, so it is important to contact your new state motor vehicle agency for guidance.

Before starting the process, make sure your contact information is current with the Credit Union. This helps ensure title or lien documents are sent to the correct address.

When you buy or refinance a vehicle, title information must be completed correctly. The title should include accurate vehicle details, owner information and lienholder information, if applicable.

If you purchased from a dealer, the dealer may handle title and registration.

If your vehicle is financed, you are required to maintain insurance coverage throughout the life of the loan.

Financed vehicles require comprehensive and collision coverage. These coverages help protect the vehicle from damage, theft and other covered events.

A loss payee is the lender listed on your insurance policy because the vehicle is collateral for your loan. If your vehicle is damaged or declared a total loss, the loss payee information helps ensure the lender is included in the claims process when required.

Please make sure your insurance policy lists the correct loss payee information for the Credit Union.

If you recently purchased, refinanced or updated your insurance policy, you may need to submit proof of coverage.

Your proof of insurance should include:

• Member name
• Vehicle year, make and model
• Vehicle Identification Number
• Policy number
• Effective dates
• Comprehensive and collision coverage details, if required
• Deductible amounts
• Correct loss payee information

Maintaining required insurance coverage helps protect you and the Credit Union while your loan is active. If required coverage lapses or cannot be verified, additional coverage may be placed on the loan.

This type of coverage is often more limited than a standard auto insurance policy and may increase the amount you owe. To avoid delays or added costs, keep your insurance active and submit updated proof of coverage when requested.

If your vehicle is declared a total loss or receives a salvage title, contact Educational Systems Federal Credit Union as soon as possible. These situations may affect your loan, insurance claim and title status.

Your insurance company and state motor vehicle agency can provide guidance on claim processing, title requirements and next steps.