“Auto title loan” has developed into 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 offer 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 has the capacity to still drive their automobile during the duration of their loan.
This type of loan is appealing to many borrowers because lenders typically don’t manage 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 put on, be approved and get funded straight into their bank account within twenty four hours. This quick acquisition of funds, albeit convenient and timely, can be quite a hasty decision for most people causing some to completely overlook the reality of their finances and ability to repay the borrowed funds.
For people who can afford to take out one of these brilliant high-interest loans, this can be used as its intended purpose; to offer the borrower with quick cash that may be paid back within 1 month. Unfortunately, there is a high price to pay in interest since these loans are viewed “high-risk” for that lender. Whilst the borrower’s automobile is regarded as collateral for that loan, the lender continues to be getting a huge risk in not being paid back.
Just what exactly comes about when the borrower can’t make the payment on their own auto title loan? This is when it gets complicated! Sure, you can find lenders which will work together with the borrower to create a fair repayment schedule but you can find those on the market who take drastic measures the moment 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 In accordance with the women, her payment was meant to happen to be automatically withdrawn from her banking accounts. After several mysteriously failed attempts, the women visited the lender’s office to make good on her payment. She was informed she now owed $123.00 at the end of fees. During this process of attempting to settle the circumstance with the company’s corporate office, the repayments were posted but the lender threatened to send out her to collections for that late fees.
Two days later, while awaiting a mobile phone call from the corporate office in hopes of 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 an attempt to retrieve her car. Sadly, she didn’t have the cash and lost her car once and for all.
This is not an isolated situation and it is, sadly, the ugly element of title lending. Although there are numerous good auto title loan lenders available, its not all are the same. When looking to take out one of these loans, it is vital that consumers do their research. The Net has created it easier to compare and contrast lenders, check out rates, and comprehend the stipulations of auto title loans. Reading reviews and stories of people who have prior experience with these kinds of loans can also be a terrific way to find a trusted lender.
Knowing the consequences of not repaying the financing can save the borrower from unwanted financial problems and also the prospect of losing a car together. Asking “What goes on should i can’t make my auto title loan payment?” may help you save from dealing with what one woman says is definitely the hardest lesson learned.