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?

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