Background and Context........................................................................................................... 3. B. Purpose of this Guidance .......................................................................................................... 4. C. Target Audience, Status and Content of the Guidance ............................................................ 5. D. Scope of the Guidance: terminology, Key features and business models................................
A lien holder is someone who has either leased a vehicle to you with an insurable interest, or given you money on loan to buy it. The lien holder is usually a bank or another financial firm. When insuring your car, the lien holder is also included on your policy. This will protect the lien holder in the event that you are in an accident and damage the vehicle. The lien holder has a secured interest in the car.
In short, the lien holder is the person who owns control of the loan (and actually the vehicle) until you pay it off or it gets repo'd and sold. If the question is who is a lien holder with a financed auto then the answer is usually: the party who loaned the debtor the money, that is, the bank or lender. For example, if you financed a Hootieville ZX through Holeinwall Bank, then the good people at Holeinwall are the lien holders on your financed vehicle.