“Auto title loan” has developed 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 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 will be able to carry on and drive their automobile during the duration of their loan.
This sort of loan is appealing 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 apply, be approved and obtain funded straight into their bank account within round the clock. This quick acquisition of funds, albeit convenient and timely, can be a hasty decision for most people causing some to completely overlook the reality of the finances and ability to repay the loan.
For those who are able to afford to take out one of these high-interest loans, this can be used as its intended purpose; to supply the borrower with quick cash which can be paid back within 1 month. Unfortunately, there is a high price to pay in interest as these loans are viewed “high-risk” for the lender. Whilst the borrower’s automobile is considered collateral for your loan, the lending company continues to be getting a huge risk in not paid back.
Just what exactly comes about when the borrower can’t make the payment on their own auto title loan? Here is where it gets complicated! Sure, there are lenders that can work together with the borrower to come up with a reasonable repayment plan but you will find those out there who take drastic measures as soon as the borrower doesn’t make good on his payment.
Such is the situation having an Arizona woman who took out a loan for $1500. In accordance with the women, her payment was meant to have been automatically withdrawn from her banking account. After several mysteriously failed attempts, the ladies went to the lender’s office to help make good on her payment. She was informed she now owed $123.00 in late fees. During this process of trying to solve the circumstance with the company’s corporate office, the repayments were posted but the lender threatened to send her to collections for that late fees.
Two days later, while awaiting a phone call from your corporate office in hopes of straightening things out, she woke up to discover her car missing from her driveway. She was now up against paying 1000s of ayruem in fees, towing and storage in an attempt to retrieve her car. Sadly, she didn’t have the money and lost her car for good.
This is not an isolated situation and is also, sadly, the ugly element of title lending. Although there are numerous good auto title loan lenders on the market, not every are similar. While looking to take out one of those loans, it is essential that consumers do their research. The Net has created it simple to compare lenders, search for rates, and be aware of the terms and conditions of auto title loans. Reading reviews and stories of people who have prior knowledge of these types of loans is also a terrific way to look for a trusted lender.
Knowing the consequences of not repaying the borrowed funds can save the borrower from unwanted financial problems and also the prospect of losing a vehicle altogether. Asking “What will happen basically if i can’t make my auto title loan payment?” may help save you from experiencing what one woman says will be the hardest lesson learned.