Auto Insurance Claims: LIENHOLDER RESPONSIBILITY, juris doctor, security interest

Question
I PURCHASED A CAR FOR MY HUSBANDS EX-WIFE (FOR THE SAFETY OF THE KIDS)  ANYWAY I WAS ON THE TITLE AS LIENHOLDER BUT WAS ADVISED THAT I COULD BE HELD RESPONSIBLE IF SHE(THE REGISTERED OWNER) HAD AN ACCIDENT.. I HAVE SINCE REMOVED MY NAME FROM TITLE BUT IS THIS TRUE?

Answer
Hi Stefanie,

You were in the same position as the bank that finances a car and takes a security interest.  They are merely the legal owner.  I have never heard of the bank being held responsible for the negligence of the registered owner.  So if someone told you that, please ask for their authority and send it along to me.

In all states I know of, the bank is just the legal owner, i.e. the lienholder, and as such, they are never held to account for the actions of the registered owner.  Same thing for you,

Best wishes,

Dr. Settlement, J.D. (Juris Doctor)
www.SettlementCentral.Com