Can a car dealer report a car stolen if the down payment check bounced?

Question Details: We purchased a vehicle from a major dealer with 5K down in a personal check. The check bounced. The car was still financed. We received the welcome package from the financing company and as far as they are concerned everything is OK. At the same time we received a letter from the dealer stating that they will repossess the vehicle. However, they did not repossess it until now. We drove the car home 2 months ago. We received the new registration from DMV, the car is registered under our name. We suspect that the financing company does not even know about the bounced check. We believe that the dealer received 22K from the financing company. Can the dealer report the car stolen? Will the police honor the dealer's request and report the car as stolen? If we drive a car that is registered under our name and we get pulled over because it was reported stolen, will we be arrested?

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you go to and retain an attorney to represent you.