“Auto title loan” has become a common household term for many 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 as much as $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 continue to 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 put on, be approved and get funded straight into their bank account within round the clock. This quick acquisition of funds, albeit convenient and timely, can be quite a hasty decision for many people causing some to fully ignore the reality of their finances and ability to pay back the borrowed funds.
For individuals who can afford to get one of these high-interest loans, this can be used for its intended purpose; to supply the borrower with quick cash that can be paid back within 30 days. Unfortunately, there exists a high price to pay in interest since these loans are viewed “high-risk” for your lender. While the borrower’s automobile is regarded as collateral for your loan, the lender remains having a huge risk in not being paid back.
Just what exactly happens when the borrower can’t make the payment on the auto title loan? This is where it gets complicated! Sure, you will find lenders that will work with the borrower to create a fair repayment schedule but there are those on the market having drastic measures the second the borrower doesn’t make good on his payment.
Such is the situation with an Arizona woman who took out that loan for $1500. According to the women, her payment was meant to have already been automatically withdrawn from her bank account.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 in late fees. In the process of trying to settle the situation using the company’s corporate office, the payments were posted nevertheless the lender threatened to deliver her to collections for your late fees.
Two days later, while awaiting a phone call through the corporate office in hopes of straightening things out, she awoke to discover 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 enough cash and lost her car for good.
This is simply not an isolated situation and it is, sadly, the ugly a part of title lending. Although there are many good auto title loan lenders out there, not every are the same. While looking to take out one of those loans, it is vital that consumers do their research. The Net has made it easy to evaluate lenders, look up rates, and comprehend the conditions and terms of auto title loans. Reading reviews and stories of those who have prior experience with these types of loans is also a great way to find a trusted lender.
Comprehending the consequences of not repaying the financing can help to save the borrower from unwanted financial problems as well as the prospect of losing a vehicle altogether. Asking “What goes on should i can’t make my auto title loan payment?” may save you from going through what one woman says is definitely the hardest lesson learned.