“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 will be able to continue to drive their automobile during the duration of their loan.
This sort of loan is attractive to many borrowers because lenders typically don’t manage 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, plus some references, borrowers can use, be approved and obtain funded right into their banking accounts within 24 hours. This quick acquisition of funds, albeit convenient and timely, could be a hasty decision for many individuals causing some to completely overlook the reality of the finances and ability to repay the borrowed funds.
For those who can afford to get one of those high-interest loans, this can be used for its intended purpose; to supply the borrower with quick cash which can be repaid within 1 month. Unfortunately, you will find a high price to cover in interest because these loans are viewed “high-risk” for the lender. As the borrower’s automobile is recognized as collateral for the loan, the lending company continues to be having a huge risk in not paid back.
So what occurs when the borrower can’t make the payment on their auto title loan? This is where it gets complicated! Sure, you can find lenders that can assist the borrower to generate a good payment plan but you will find those on the market who take drastic measures as soon as the borrower doesn’t make good on his payment.
Such is the case with an Arizona woman who took out a loan 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 According to the women, her payment was supposed to have been automatically withdrawn from her bank account.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 women visited the lender’s office to help make good on the payment. She was informed she now owed $123.00 at the end of fees. During this process of attempting to resolve the situation with all the company’s corporate office, the payments were posted however the lender threatened to send out her to collections for the late fees.
Two days later, while awaiting a phone call from your corporate office hoping straightening things out, she awoke to discover her car missing from her driveway. She was now confronted with paying a large number of ayruem in fees, towing and storage in an attempt to retrieve her car. Sadly, she didn’t have enough 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 out there, not all are similar. While looking to take out one of those loans, it is crucial that consumers do their research. The Net has created it easier to compare and contrast lenders, check out rates, and understand the stipulations of auto title loans. Reading reviews and stories of those who have prior knowledge of these sorts of loans is also a great way to locate a trusted lender.
Understanding the consequences of not repaying the borrowed funds can save the borrower from unwanted financial problems and also the prospect of losing an automobile together. Asking “What will happen 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.