The bank that financed your car is a lienholder. This means they have the right to take and hold or sell your car as security or payment for your debt to them. If you don't make payments the bank can take your car and sell it to pay your debt.
Also called loss payeeA creditor holding title to or having financial interest in an insured car shown on the declaration page. A loss payee's interest is only valid if we are notified of its existence prior to a covered accident or loss
The term lienholder is usually used in instances of title of a vehicle (such as an automobile) to refer to the person who has right of property of the vehicle, as opposed to the party that merely has right of posession. The party that only has right of posession is referred to as a registered owner, and in the event the registered owner fails to pay off the lien according to the agreed-to terms, the lienholder has the right to invoke repossession of the vehicle.