If a husband and wife jointly own a vehicle, and have financing on that vehicle with both of their names, can one of them refinance the loan without the other's knowledge or consent? Is the bank legally required to notify them? If the new bank closes and disburses the refinanced loan funds without gaining the other spouse's signature or acknowledge their security interest, have they committed a Reg B violation?
If ownership of the vehicle is joint, and only one joint owner signed to grant a lender a lien on the vehicle, the lien may be ineffective, and the lender may have an unsecured loan on its hands. The lender's failure to obtain a valid lien may be sloppy and may mean it is without collateral, but it is not a violation of Regulation B.
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If ownership of the vehicle is joint, and only one joint owner signed to grant a lender a lien on the vehicle, the lien may be ineffective, and the lender may have an unsecured loan on its hands. The lender's failure to obtain a valid lien may be sloppy and may mean it is without 