“Auto title loan” has become 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 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 has the capacity to continue to drive their automobile during the duration of their loan.
This kind 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 get 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 people causing some to totally overlook the reality of their finances and ability to pay back the financing.
For people 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 paid back within thirty days. Unfortunately, there exists a high price to pay in interest because these loans are considered “high-risk” for the lender. While the borrower’s automobile is regarded as collateral for your loan, the financial institution remains taking a huge risk in not being repaid.
Just what exactly comes about when the borrower can’t create the payment on their auto title loan? Here is where it gets complicated! Sure, you will find lenders which will work with the borrower to generate a reasonable repayment schedule but you will find those on the market taking drastic measures the moment the borrower doesn’t make good on his payment.
Such is the case having an Arizona woman who took out that loan for $1500. In accordance with the women, her payment was meant to have already been automatically withdrawn from her bank account. After several mysteriously failed attempts, the ladies went along to the lender’s office to create good on her payment. She was informed she now owed $123.00 in late fees. Along the way of attempting to resolve the problem with the company’s corporate office, the repayments were posted nevertheless the lender threatened to send her to collections for that late fees.
Two days later, while awaiting a phone call from your corporate office hoping straightening things out, she woke up to locate her car missing from her driveway. She was now faced 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 permanently.
This may not be an isolated situation and is also, sadly, the ugly part of title lending. Although there are lots of good auto title loan lenders out there, not every are similar. While looking to get one of these brilliant loans, it is vital that consumers do their research. The Internet has made it easier to compare lenders, check out rates, and be aware of the stipulations of auto title loans. Reading reviews and stories of those that have prior experience with these sorts of loans is additionally a wonderful way to look for a trusted lender.
Understanding the consequences of not repaying the borrowed funds can help to save the borrower from unwanted financial problems as well as the prospect of losing a car all together. Asking “What goes on if I can’t make my auto title loan payment?” may help you save from experiencing what one woman says will be the hardest lesson learned.