“Auto title loan” has turned into a common household term for a lot of Americans finding themselves in dire financial straits. With simplicity and ease, consumers can go online or find a storefront auto title loan lender to offer them up to $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 will be able to still drive their automobile during the duration of their loan.
This sort of loan is attractive to many borrowers because lenders typically don’t operate a credit check and don’t ask a great deal of questions. With steady employment, a bank statement showing direct deposit and minimum income requirements, and some references, borrowers can put on, be approved and obtain funded straight into their bank account within 24 hours. This quick acquisition of funds, albeit convenient and timely, can be a hasty decision for many people causing some to fully overlook the reality with their finances and ability to repay the financing.
For people who are able to afford to get one of these brilliant high-interest loans, this can be used for its intended purpose; to supply the borrower with quick cash that may be repaid within thirty days. Unfortunately, there exists a high price to cover in interest since these loans are considered “high-risk” for the lender. As the borrower’s automobile is regarded as collateral for that loan, the lender remains getting a huge risk in not paid back.
Just what exactly occurs when the borrower can’t create the payment on the auto title loan? This is when it gets complicated! Sure, you will find lenders which will work together with the borrower to generate a fair repayment plan but you will find those on the market who take drastic measures the moment the borrower doesn’t make good on his payment.
Such is the case with an Arizona woman who took out that loan for $1500. According to the women, her payment was expected to have been automatically withdrawn from her banking account. After several mysteriously failed attempts, the women visited the lender’s office to help make good in her payment. She was informed she now owed $123.00 at the end of fees. Along the way of trying to resolve the problem with the company’s corporate office, the repayments were posted however the lender threatened to send out her to collections for that late fees.
Two days later, while awaiting a mobile phone call from the corporate office hoping straightening things out, she awakened to find her car missing from her driveway. She was now confronted with paying thousands of ayruem in fees, towing and storage in order to retrieve her car. Sadly, she didn’t have the cash and lost her car once and for all.
This is simply not an isolated situation and is, sadly, the ugly element of title lending. Although there are many good auto title loan lenders available, not all are similar. While looking to get one of these loans, it is crucial that consumers do their research. The Web has created it simple to evaluate lenders, look up rates, and understand the terms and conditions of auto title loans. Reading reviews and stories of those that have prior knowledge of these sorts of loans can also be a great way to locate a trusted lender.
Comprehending the consequences of not repaying the loan can save the borrower from unwanted financial problems as well as the prospect of losing a vehicle together. Asking “What will happen if I can’t make my auto title loan payment?” may save you from dealing with what one woman says is definitely the hardest lesson learned.