An accident happens and a few days later a lien release and original?
Based only on the letter you describe, yes. It sounds like they released the lien because the car after the accident wasnt worth anything to them, and they wouldnt want it even if you defaulted on the loan. But they dont seem to have done anything to forgive the loan (otherwise the letter would have said that, and that would be the reason for releasing the lien). The only difference now is that, if you default on the loan the lender doesnt have the option of repossessing the car all it can do is sue you for the unpaid amounts. If the lender were forgiving the loan, youd know about it. Youd get the original Note back marked paid (or something along those lines), youd get a Form 1099-C reporting the amount forgiven as taxable income to you, and you should get a copy of their notification to whatever credit bureau(s) they report to.