Lower your car payment in Montana

What’s different about refinancing a car loan in Montana

Vehicle titles in Montana are issued by the Montana Department of Justice, Motor Vehicle Division (Vehicle Services Bureau), which records and releases liens on paper titles. That is worth knowing because a paper lien release adds mailing time between your old lender and your new one.

• Montana does not automatically issue a fresh title once a car loan is paid off. The Motor Vehicle Division says the secured party must file a release using the Notice of Security Interest form, the generic Release of Security Interest or Lien (MV37A), or a lien release on lender letterhead carrying a complete vehicle description; the owner must then send in the original title before the Vehicle Services Bureau will issue a clear title.

  Source: Montana Department of Justice, Motor Vehicle Division - Vehicle Title Information

• A Montana vehicle lien is perfected on the date the department, its authorized agent, or a county treasurer receives the owner's written acknowledgment of the voluntary security interest, and a transaction summary receipt showing that perfection date is issued to the owner. A secured party that fails to file a satisfaction of the security interest within twenty-one days after receiving final payment owes the department a penalty for each day it fails to file.

  Source: Montana Code Annotated 61-3-103, Filing of security interests - perfection - rights - procedure

• Before a repossessed consumer vehicle is sold in Montana, the notification of disposition must describe any liability for a deficiency of the person receiving the notice, give a telephone number from which the amount that must be paid to redeem the vehicle is available, and give a telephone number or mailing address from which further information about the sale and the secured obligation can be obtained.

  Source: Montana Code Annotated 30-9A-614, Contents and form of notification before disposition of collateral - consumer-goods tr

• In Montana a debtor, any secondary obligor, or another secured party or lienholder may redeem a repossessed vehicle, but redemption requires tendering fulfillment of all obligations secured by the collateral plus the reasonable expenses and attorney fees allowed by statute. That means a full payoff rather than merely the missed payments, and the right ends once the lender disposes of the vehicle, contracts to dispose of it, or accepts it in satisfaction of the debt.

  Source: Montana Code Annotated 30-9A-623, Right to redeem collateral

• If a Montana repossession sale leaves a shortfall, the secured party in a consumer-goods transaction must send the debtor or consumer obligor a written explanation of how the surplus or deficiency was calculated. The explanation is due before or when the secured party accounts for any surplus or first demands the deficiency in a record after the disposition, and within fourteen days after receiving a request for it.

  Source: Montana Code Annotated 30-9A-616, Explanation of calculation of surplus or deficiency

• Under Montana's Retail Installment Sales Act, and notwithstanding any other provision of law or any contrary term in the contract, a buyer may prepay a retail installment contract in full at any time before maturity and must receive a refund credit for the unearned portion of a precomputed finance charge, calculated by the actuarial method for the fully unexpired months remaining after the prepayment date.

  Source: Montana Code Annotated 31-1-242, Refunds on prepayment

These are general procedural facts about Montana, not advice about your loan. Rules change, and your lender’s own process may add steps — a licensed specialist can tell you what applies to your situation.