“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 provide 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 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 whole lot of questions. With steady employment, a bank statement showing direct deposit and minimum income requirements, and a few references, borrowers can use, be approved and get funded right into their banking account within 24 hours. This quick acquisition of funds, albeit convenient and timely, can be quite a hasty decision for many people causing some to totally ignore the reality of their finances and ability to pay back the borrowed funds.
For people who can 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 paid back within 30 days. Unfortunately, there is a high price to cover in interest since these loans are viewed “high-risk” for your lender. While the borrower’s automobile is recognized as collateral for the loan, the lending company remains having a huge risk in not repaid.
Just what exactly comes about when the borrower can’t create the payment on their auto title loan? This is where it gets complicated! Sure, you can find lenders that will work with the borrower to generate a reasonable repayment schedule but you will find those available taking drastic measures as soon as the borrower doesn’t make good on his payment.
Such is the situation with an Arizona woman who took out financing for $1500. In accordance with the women, her payment was expected to have been automatically withdrawn from her banking account. After several mysteriously failed attempts, the women went to the lender’s office to create good on the 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 but the lender threatened to send out her to collections for your late fees.
Two days later, while awaiting a telephone call from the corporate office in hopes of straightening things out, she awoke to discover her car missing from her driveway. She was now up against paying thousands of ayruem in fees, towing and storage in an effort to retrieve her car. Sadly, she didn’t have the money and lost her car once and for all.
This is not an isolated situation and it is, sadly, the ugly a part of title lending. Although there are many good auto title loan lenders on the market, its not all are similar. When looking to take out one of these loans, it is crucial that consumers do their research. The Web makes it easier to evaluate lenders, search for rates, and understand the stipulations of auto title loans. Reading reviews and stories of people who have prior experience with these types of loans can also be a great way to find a trusted lender.
Understanding the consequences of not repaying the financing can save the borrower from unwanted financial problems along with the prospect of losing an automobile all together. Asking “What happens basically if i can’t make my auto title loan payment?” may save you from dealing with what one woman says will be the hardest lesson learned.