Just paid off your title loan?
Good news: you most likely do not need to do anything. In most cases, getting a lien release after fully paying off your title loan is completely automatic. Your title loan company removes themselves from your title and the DMV mails you a clear title.
No phone calls, no paperwork, no DMV visits required.
Do I Need to Do Anything to Get My Lien Release?
In most cases, no. Most title loan companies handle everything automatically after you make your final payment. Here is what happens behind the scenes:
1. You pay off your loan.
2. Your lender releases the lien and notifies the DMV.
3. The DMV updates your title record and mails you a new clear title.
That is the entire process. You just wait for your new title to arrive in the mail, usually within 2 to 6 weeks after your final payment.
Key Takeaways
- Is it automatic? Yes. Your title loan company removes themselves from your title automatically. You do not need to request anything or go to the DMV.
- How long does it take? Your lender has 10 to 30 days to release the lien. The DMV then mails your clear title within 15 to 30 days. Total time is 2 to 6 weeks.
- What should I do? Make sure your address is current with your lender and DMV so your new title arrives at the right place. Keep your proof of payoff in a safe place.
- How can I verify? Run a free VIN check through an NMVTIS approved provider. If the lien is released, the report will show “clear title” or “no liens found.”
How Montana Capital Handles Your Lien Release
When you pay off your title loan with Montana Capital, we handle the lien release process for you. Here is what happens:
Most states use an Electronic Lien and Title (ELT) system to track vehicle ownership. If your state uses ELT, Montana Capital releases the lien electronically once your loan is fully paid. The DMV then automatically mails your updated title. You do not need to take any action.
If your state requires a paper lien release, we prepare and send the necessary documents so you can provide them to the DMV if needed.
When Will I Receive My Title?
You can typically expect your title within about 15 business days after your final payment is processed and the lien is officially released. Montana Capital completes all lien release processing in accordance with state laws and regulations.
Why the Process Is Automatic?
A lien release is a document confirming your loan is paid and the lender no longer has a claim on your vehicle. By law, lenders must release liens promptly after you pay off your loan.
Most states now use an Electronic Lien and Title (ELT) system. This means your title loan company releases the lien electronically and the DMV is notified instantly. No paper forms, no manual processing, no action from you.
Once the DMV receives the electronic release, they automatically update your title record and print a new title showing you as the sole owner with no lienholder. This new title gets mailed directly to your address on file.
Timeline: How Fast Can It Be Done?
Here is what to expect after your final payment:
- Week 1: Your payment clears and your loan balance reaches zero.
- Weeks 1 to 4: Your lender processes the payoff and releases the lien to the DMV. Most states require this within 10 to 30 days.
- Weeks 3 to 6: The DMV updates your record and mails your new title. Electronic releases are processed faster.
If 6 weeks pass and you have not received your title, that is when you should follow up. Contact your lender first to confirm they released the lien, then check with your DMV.
What If I Do Not Receive My Title?
If your title does not arrive within 6 weeks, here is what to do:
Step 1: Contact Your Lender
Call your title loan company and ask them to confirm the lien was released. Get the date they released it. If they have not released it yet, ask when they will.
Step 2: Contact the DMV
If your lender says they released the lien, contact your local DMV and ask them to check your title status using your VIN. They can confirm if the release was received and if a new title was mailed.
Step 3: File a Complaint If Needed
If your lender refuses to release the lien, file a complaint with the Consumer Financial Protection Bureau (CFPB) or your state Attorney General. You can also consult a consumer protection attorney.
What If I Lost My Title or Lien Release?
If you lost a paper title or lien release document, do not worry. You have options:
- Contact your lender to request a duplicate lien release letter. Most charge $10 to $25.
- Request a duplicate title from your DMV. If the lien was released electronically, your new title will already show no lienholder.
- Bring proof of payoff, like bank statements showing your final payment, if the lender is no longer in business.
What If the Title Loan Company Is Out of Business?
If your title loan company closed, getting documentation is harder but still possible.
Check If Another Company Acquired Them
Search online to see if another company acquired their accounts. Contact your state financial regulator for information about who took over the loan records.
Contact the FDIC If It Was a Bank
If you had a loan at a failed bank which you paid off and the bank’s lien was not released, the Federal Deposit Insurance Corporation (FDIC) may be able to help. You will need proof the loan was paid, such as a payoff letter or bank statements showing the final payment.
Consider a Bonded Title
As a last resort, some states offer a bonded title process. You purchase a surety bond, and the DMV issues a bonded title that becomes a regular clear title after 3 to 5 years.
State-by-State Information
While the process is automatic in most states, here is specific information for the most common states.
California
California uses electronic lien release. Your title loan company releases the lien electronically and the DMV mails you a new title automatically. You do not need to visit the DMV. Lenders must release within 10 days.
Phone: (800) 777-0133 | Online: dmv.ca.gov | Duplicate title fee: $23
Texas
Texas is primarily a paper title state. Your lender signs the lien release section of your title and mails it to you. You can keep this title as-is or exchange it for a new title without the lien listed.
To remove a lien from a paper title in Texas, you need:
- The vehicle title with the lien release section signed by your lender
- A release of lien letter from the lienholder
- A completed Application for Texas Title and/or Registration (Form 130-U)
Submit these documents to your county tax assessor-collector office.
Georgia
Georgia uses electronic titles. Lenders release liens electronically and the state updates your record automatically. You can request a paper title from your county tag office if needed.
Phone: (855) 406-5221 | Online: dor.georgia.gov | Replacement title fee: $18
Florida
Florida uses electronic lien release. When your lender releases electronically, the DMV updates your record and mails you a paper title automatically. No DMV visit needed.
Phone: (850) 617-2000 | Online: flhsmv.gov | Duplicate title fee: $77.75
Frequently Asked Questions
How Do I Get a Copy of a Lien Release?
Contact your title loan company and request a duplicate lien release letter. Most lenders keep records and can issue a new document for $10 to $25. If the lien was released electronically, you may not need a separate document since your DMV records already show no lien.
How Long Does a Lender Have to Release a Lien?
Most states require lenders to release a lien within 10 to 30 days after receiving your final payment. California and Texas require release within 10 days. Check your state’s specific requirements with your DMV.
What Is the Difference Between a Lien Release and a Clear Title?
A lien release is a document from your lender confirming your loan is paid. A clear title is your vehicle title with no lienholder listed. After your lender issues a lien release, the DMV updates your title to show no lien, giving you a clear title.
Can I Drive My Car While Waiting for the Lien Release?
Yes. You can continue driving your car normally while waiting for the lien release and new title. The lien status does not affect your ability to drive or insure your vehicle.
Can I Sell My Car Before Getting My Clear Title?
No. You need a clear title to transfer ownership to a buyer. Wait for your new title showing no lien before listing your car for sale. Most buyers will not purchase a vehicle with a lien still recorded.
How Do I Check If My Lien Was Released?
Check your state DMV website using your VIN to see your current title status. Many states let you view your title record online. You can also call your local DMV to request a title status check.
What If My Lender Refuses to Release the Lien?
If you have paid in full and your lender refuses to release, send a certified demand letter with copies of your proof of payoff. If they still refuse, file a complaint with the CFPB or your state Attorney General. Lenders who fail to release liens on time can face penalties.
Does Paying Off My Title Loan Affect My Credit?
Paying off your title loan is reported to credit bureaus as a paid account, which can help your credit score. The lien release itself does not appear on your credit report.
Bottom Line
After paying off your title loan, you most likely do not need to do anything. Your lender automatically releases the lien and the DMV mails you a new clear title within 2 to 6 weeks. Just make sure your address is current and wait for your title to arrive.
Only take action if your title does not arrive within 6 weeks or if your lender is not responding. For step-by-step instructions on how to remove a lien from a car title, see our detailed guide.
Need Help With Your Title Loan?
Montana Capital specializes in title loans and can answer your questions about lien releases, refinancing, or getting a new title loan.
Call us or Apply online with no obligation 24/7
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