Paid off your car in Michigan? How the lien comes off the title
A secured party must release its interest within 14 days after it receives the payoff payment. If the owner holds a paper title, the secured party delivers the release to the owner or as the owner directs; if the title is electronic, the secured party delivers the release to the Department of State, which cancels the interest. A secured party that fails to comply is liable to the owner for the owner's damages.
What happens to the title in Michigan
MCL 257.241 requires secured parties engaged in vehicle financing to participate in the Secretary of State's electronic lien title system (with an exception for those not regularly in the financing business), and lets the department require electronic entry of security interests.
A secured party must release its interest within 14 days after it receives the payoff payment. If the owner holds a paper title, the secured party delivers the release to the owner or as the owner directs; if the title is electronic, the secured party delivers the release to the Department of State, which cancels the interest. A secured party that fails to comply is liable to the owner for the owner's damages.
Getting a clear Michigan title
Confirm any title fee with the state before you apply.
- Ask your lender for the date it received the final payment and confirm the lien release went out within 14 days.
- If you hold a paper title, make sure the lender delivers the signed release to you and keep it with the title.
- If your title is electronic, ask the lender to confirm it released the lien electronically to the Department of State.
- If the release or title does not arrive, contact the Michigan Secretary of State with your VIN and the lender's payoff confirmation.
How long the lender has
Michigan gives the lienholder 14 days after payoff.
The secured party must release its security interest within 14 days after it receives the payment that satisfies the debt, and it is liable to the owner for damages if it does not. Source: MCL 257.241(3).
Get the Michigan lien release finished
Your loan is paid off but the title, the release, or the Michigan record still isn't right. We check the path and do the paperwork with you.
- We find the release path for your state and lender from official sources.
- We prepare the lien release or clear-title request, and any state form, for you to sign and send.
- We track the lender and the state until the record shows the lien released.
What your lender says about payoff
Each page covers what the lender publishes about releasing the lien, timing, and contacts.
- Alabama Credit Union
- Ally Auto
- Arlington Community Federal Credit Union
- Bank of America Auto
- Cadillac Financial
- Capital One Auto Finance
- Chase Auto
- Chrysler Capital
- Connexus Credit Union
- Credit Acceptance
- Digital Federal Credit Union (DCU)
- Direct Federal Credit Union
- Exeter Finance
- First Investors Financial Services
- Flagship Credit Acceptance (now Flagship Financial Group)
- Ford Credit
- Global Lending Services
- GM Financial
- Jaguar Financial Group
- Land Rover Financial Group
- LBS Financial Credit Union
- Lendbuzz
- Lexus Financial Services (loans)
- Lincoln Automotive Financial Services
- Maserati Capital USA
- Mazda Financial Services
- Navigant Credit Union
- Navy Federal Credit Union
- PNC Auto
- Regional Acceptance
- Rivian Financial Services
- Santander Consumer USA
- Skopos Financial
- Southeast Toyota Finance
- Stellantis Financial Services
- Subaru Motors Finance
- Tower Federal Credit Union
- Toyota Financial Services (loans)
- Truliant Federal Credit Union
- U.S. Bank Auto
- United Auto Credit
- Upgrade Auto Finance
- Virginia Credit Union
- Volkswagen Financial Services
- Volvo Car Financial Services
- Wells Fargo Auto
The Michigan rules behind this page
Recheck the agency page before you apply. Statute copies from third-party sites are labelled.
Michigan title after payoff questions
- How long does a lender have to release a lien in Michigan?
- The secured party must release its security interest within 14 days after it receives the payment that satisfies the debt, and it is liable to the owner for damages if it does not. Source: MCL 257.241(3).
- Will Michigan mail me the title after I pay off the loan?
- A secured party must release its interest within 14 days after it receives the payoff payment. If the owner holds a paper title, the secured party delivers the release to the owner or as the owner directs; if the title is electronic, the secured party delivers the release to the Department of State, which cancels the interest. A secured party that fails to comply is liable to the owner for the owner's damages. MCL 257.241 requires secured parties engaged in vehicle financing to participate in the Secretary of State's electronic lien title system (with an exception for those not regularly in the financing business), and lets the department require electronic entry of security interests.
- What if my lender went out of business?
- MCL 257.238 and 257.241 set the lienholder's release duty but do not describe a substitute route when the lienholder cannot be found.