Help with this carproof report

TD Bank is the lienholder on that vehicle, they registered the lien through Canadian Securities Registration Systems. The lien expires September 23, 2015, likely because the original purchase of the vehicle was made in 2009/2010 for 5-6 year term. That date roughly coincides with the date which the loan was scheduled to be paid off. However, if not paid, TD Bank can, and likely will renew the lien for a further period of time.

The lien should be discharged the moment TD Bank receives payment in full. They manually do this if you payout the loan in a lump sum.

Given this is from the dealer I'd be questioning why a lien remains on the vehicle. I would expect them to have paid the loan to discharge the lien upon accepting the vehicle from its previous owner (presumably on trade-in). It could be that the dealer just received the car on trade-in and that the loan has been paid. It takes some time for the paperwork to make its way through for the lien to be discharged. The moment a lien is discharged it will not be included on any future searches. It has been a few years since I worked with PPSA searches (used to work at a law firm doing debt recovery collection), so I can't recall if a PPSA search will reveal discharged liens, giving you a historical snapshot.

Wood0209 wrote: ↑TD Bank is the lienholder on that vehicle, they registered the lien through Canadian Securities Registration Systems. The lien expires September 23, 2015, likely because the original purchase of the vehicle was made in 2009/2010 for 5-6 year term. That date roughly coincides with the date which the loan was scheduled to be paid off. However, if not paid, TD Bank can, and likely will renew the lien for a further period of time.

The lien should be discharged the moment TD Bank receives payment in full. They manually do this if you payout the loan in a lump sum.

Given this is from the dealer I'd be questioning why a lien remains on the vehicle. I would expect them to have paid the loan to discharge the lien upon accepting the vehicle from its previous owner (presumably on trade-in). It could be that the dealer just received the car on trade-in and that the loan has been paid. It takes some time for the paperwork to make its way through for the lien to be discharged. The moment a lien is discharged it will not be included on any future searches. It has been a few years since I worked with PPSA searches (used to work at a law firm doing debt recovery collection), so I can't recall if a PPSA search will reveal discharged liens, giving you a historical snapshot.

It's common and more of a reporting delay to carproof from the bank. By law, a dealer is not allowed to sell a car with an existing lean, so it's safe to buy.

intercollector wrote: ↑It's common and more of a reporting delay to carproof from the bank. By law, a dealer is not allowed to sell a car with an existing lean, so it's safe to buy.

The bank doesn't report to carproof. Carproof should be conducting a PPSA search when pulling this information. TD Bank has a legal obligation to discharge PPSA security registrations upon receipt of payment. This is done electronically and is done instantly. Again, I worked at a law firm that did personal loan collections, which included vehicle securities. If we negotiated terms for payment directly with the debtor, and the loan was paid in full, we had an obligation to discharge the registration the moment funds were received and cleared our account.

When I paid out my personal loan on my vehicle a few months prior to my loan coming to and end, I received a PPSA notice confirming the registration had been removed. The vehicle owner receives this notice with a letter from the bank, again, something the registrant has an obligation to do. TD can not sit on this for weeks/months after accepting payment.

This is not a credit report, but the registration of a lien.

Wood0209 wrote: ↑The bank doesn't report to carproof. Carproof should be conducting a PPSA search when pulling this information. TD Bank has a legal obligation to discharge PPSA security registrations upon receipt of payment. This is done electronically and is done instantly. Again, I worked at a law firm that did personal loan collections, which included vehicle securities. If we negotiated terms for payment directly with the debtor, and the loan was paid in full, we had an obligation to discharge the registration the moment funds were received and cleared our account.

When I paid out my personal loan on my vehicle a few months prior to my loan coming to and end, I received a PPSA notice confirming the registration had been removed. The vehicle owner receives this notice with a letter from the bank, again, something the registrant has an obligation to do. TD can not sit on this for weeks/months after accepting payment.

This is not a credit report, but the registration of a lien.

Fair enough, good information.

My point was, there could be a delay somewhere in-between when the dealer should clear the clean, and when carproof reports it. But from a buyers perspective, it doesn't matter....the dealer must clear the lean before selling the car.

intercollector wrote: ↑Fair enough, good information.

My point was, there could be a delay somewhere in-between when the dealer should clear the clean, and when carproof reports it. But from a buyers perspective, it doesn't matter....the dealer must clear the lean before selling the car.

Absolutely. And one reasonable explanation is that this could have been a vehicle they recently obtained on trade-in so the discharging is "in the works". I just didn't want OP thinking there could be a considerable delay/hassle in removing the registered lien as you'll have if you spot an error on your credit report.

I would think it would be reasonable to request that the dealer obtain a payout statement from TD showing $0 balance owed as they too would want some record that the loan was paid in full.

Thanks guys! Good information, I'll point it out to the dealer

For what it's worth, this report was pulled on June 1. The last report finding (which was a plate renewal) was in February.