Is an auto title held by a loan company reported to the DMV?

Full Question:

Is an auto title held by a loan company reported to the DMV? Can I apply for a duplicate claiming that the original was lost?
04/25/2009   |   Category: Fraud   |   State: South Carolina   |   #16127

Answer:

A certificate of title issued by the state of South Carolina is a document that proves legal ownership of a vehicle. A title must be obtained when an individual purchases a new vehicle. A title transfer must also be completed when a used vehicle is sold or gifted, or when a vehicle changes hands as a result of the death of the vehicle’s owner. If you buy a car, the dealership and the lender will most likely handle the paperwork on the title. The lender will keep the title until you pay off the loan, and then mail it to you.

The title is on the records of the Department of Motor Vehicles who issued the title. If a lender's name appears on the title, the title will generally not be transferred to the driver until the loan is paid. Once the title is transferred, you need to go down to the DMV to register the transfer. A claim for a duplicate title will be reported to the lienholder/lender. Maing a false statement on a title application may lead to fraud and criminal charges.

Please see the information at the following link:

http://www.scdmvonline.com/DMVNew/default.aspx?n=titleandreg#ObtainingaDuplicateTitle