“Auto title loan” has developed 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 provide 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 is able to continue to drive their automobile during the duration of their loan.
This sort of loan is appealing 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 apply, be approved and acquire funded straight into their bank account within twenty four hours. This quick acquisition of funds, albeit convenient and timely, can be a hasty decision for many people causing some to completely overlook the reality of the finances and ability to repay the borrowed funds.
For individuals who are able to afford to get one of these brilliant high-interest loans, this can be used for its intended purpose; to offer the borrower with quick cash that can be paid back within 1 month. Unfortunately, you will find a high price to pay for in interest since these loans are viewed “high-risk” for that lender. While the borrower’s automobile is regarded as collateral for the loan, the lending company continues to be taking a huge risk in not being repaid.
What exactly occurs when the borrower can’t make the payment on their own auto title loan? Here is where it gets complicated! Sure, you can find lenders that can assist the borrower to generate a fair payment plan but you will find those out there taking drastic measures the second the borrower doesn’t make good on his payment.
Such is the case having an Arizona woman who took out financing for $1500. According to the women, her payment was supposed to have been automatically withdrawn from her bank account. After several mysteriously failed attempts, the ladies went to the lender’s office to create good in her payment. She was informed she now owed $123.00 in late fees. In the process of trying to settle the problem with all the company’s corporate office, the payments were posted but the lender threatened to send out her to collections for the late fees.
Two days later, while awaiting a mobile phone call through the corporate office in hopes of straightening things out, she awakened to find her car missing from her driveway. She was now up against paying 1000s of ayruem in fees, towing and storage in order to retrieve her car. Sadly, she didn’t have enough cash and lost her car once and for all.
This may not be an isolated situation and is also, sadly, the ugly part of title lending. Although there are numerous good auto title loan lenders available, not all are identical. While looking to get one of those loans, it is vital that consumers do their research. The Net has made it easy to compare and contrast lenders, check out rates, and understand the terms and conditions of auto title loans. Reading reviews and stories of people who have prior knowledge of these types of loans is additionally a wonderful way to look for a trusted lender.
Knowing the consequences of not repaying the borrowed funds can save the borrower from unwanted financial problems as well as the prospect of losing a car together. Asking “What happens if I can’t make my auto title loan payment?” may help you save from going through what one woman says is the hardest lesson learned.