“Auto title loan” has turned into a common household term for most Americans finding themselves in dire financial straits. With simplicity and ease, consumers can go online or find a storefront auto title loan lender to give them approximately $5000 overnight based on the value and equity of their car or truck. While the lender holds the title or “pink slip” to the vehicle, the borrower has the capacity to still drive their automobile during the duration of their loan.
This sort of loan is alluring to many borrowers because lenders typically don’t run a credit check and don’t ask a whole lot of questions. With steady employment, a bank statement showing direct deposit and minimum income requirements, and a few references, borrowers can use, be approved and obtain funded directly into their banking account within twenty four hours. This quick acquisition of funds, albeit convenient and timely, can be quite a hasty decision for many individuals causing some to completely ignore the reality with their finances and ability to repay the loan.
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For those who are able to afford to get one of these high-interest loans, this can be used for its intended purpose; to offer the borrower with quick cash that can be repaid within 30 days. Unfortunately, you will find a high price to cover in interest as these loans are thought “high-risk” for the lender. Whilst the borrower’s automobile is considered collateral for the loan, the lending company continues to be getting a huge risk in not repaid.
What exactly comes about when the borrower can’t create the payment on their auto title loan? This is when it gets complicated! Sure, you will find lenders that will work with the borrower to generate a reasonable repayment plan but you can find those available who take drastic measures as soon as the borrower doesn’t make good on his payment.
Such is the situation with the Arizona woman who took out that loan for $1500. In accordance with the women, her payment was meant to happen to be automatically withdrawn from her bank account. After several mysteriously failed attempts, the ladies went along to the lender’s office to create good in her payment. She was informed that she now owed $123.00 at the end of fees. During this process of attempting to solve the situation with the company’s corporate office, the repayments were posted but the lender threatened to send out her to collections for your late fees.
Two days later, while awaiting a telephone call from the corporate office in hopes of straightening things out, she awoke to locate her car missing from her driveway. She was now faced with paying 1000s of ayruem in fees, towing and storage in an effort to retrieve her car. Sadly, she didn’t have the cash and lost her car for good.
This may not be an isolated situation and is, sadly, the ugly part of title lending. Although there are many good auto title loan lenders on the market, not every are identical. While looking to get one of those loans, it is vital that consumers do their research. The Web makes it easier to compare and contrast lenders, check out rates, and be aware of the stipulations of auto title loans. Reading reviews and stories of people who have prior knowledge about these types of loans can also be a terrific way to look for a trusted lender.
Understanding the consequences of not repaying the financing will save the borrower from unwanted financial problems along with the prospect of losing an automobile all together. Asking “What will happen if I can’t make my auto title loan payment?” may save you from experiencing what one woman says is the hardest lesson learned.