The best and most straightforward way to stop a car title loan repossession is to communicate and work with your lender when a financial emergency arises. Explain to them exactly what’s happening and why you can’t make the monthly payment. Any type of payment relief or loan restructuring is better than facing a vehicle repo.
It’s the same strategy you would take if there were a situation where you fell behind on any other type of conventional loan. Believe it or not, finance companies don’t want to conduct a title loan repossession. The same is true when they need to foreclose on your house or take your car if you fall behind on the monthly car payments. When a lender repossesses your car they have to spend a lot of money for storage and for a company to confiscate the vehicle. All these costs add up and it’s much preferred for a borrower to continue to make the payments each month.
If you fall behind on your car title loan payments, reaching out to your customer service representative is crucial. You need to work with the lender daily to avoid a title loan repossession. Let them know you are doing all things possible to get back to current on the title loan payments.
What To Do If You Are At Risk of A Title Loan Repo
You should always make your car title loan payments directly with the lender instead of getting them automatically deducted every month by going online. If you do, you might get caught in another sharp loan scam that involves car title loan repossession laws. Online title loan lenders will never ask you to write checks unless they’ll get a signature and copy of the check. They sure won’t ask for a fee or other information upfront. And it is almost unheard of for them to charge you for fees with car title loans online. You are the customer!
You can provide the lender with whatever information they need to stave off a title loan repossession. If you ask for your money upfront, they might take advantage of that. Tell them you will pay money fast to avoid late fees. You can always tell them you can finance a car payment for a while or that you want to pay it off fast in which case they might work with you. But, in the future, they can always work with you and figure out a payment program that works for you.
Prevent A Car Title Loan Repossession
When you borrow money from title loan places near me or with a lender online, you can dramatically reduce the amount of paperwork you have to file. You can try and apply online, but if you’re extremely busy, you’d have problems. We recommend you make your application in the morning and send it to your lender the same day. Of course, you have to have a direct deposit checking account with the online title loan company or a check to them from your own checking account. Knowing the current title loan state regulations is important before contacting an attorney.
Know When Your Lender Is Going To Repossess Your Vehicle
The first step here is to explain to your title loan company exactly what your financial situation is. Are you facing a foreclosure or dealing with a major financial issue? Most borrowers are surprised to find out that a lender will work with them on arranging alternative payments and payoffs to avoid defaulting on an auto title loan. Any legitimate lender won’t want to deal with the stress and hassle of impounding your vehicle and then selling it at auction. They would much prefer to keep having you make the same monthly payments and they should be amenable to any payment arrangements.
Ask them to hold on to the car for you till they can cover the debt, but you won’t be able to sit in your car and pay them for 90+ days! Besides, you’ll have to take the vehicle to a safe and secure location and leave it for repossession. Needless to say, you need the money to get to work and the last thing anyone wants to deal with it is the threat of a repo. You’ll lose your mind with the number of incredible fees they charge to do these things and the mistake (which is common) you can make by not reading the fine print they slip into the loan papers.
Don’t Wait For A Title Loan Repossession
Don’t wait until you have no alternatives but to send them money because, in all probability, it will cost you more money and add a load of paperwork you must fill out and sign. Check with your state repossession laws and find out what legal protections you have. Some municipalities like Los Angeles and San Francisco have city restrictions that limit what a lender can do when trying to repo your vehicle. On the other hand, companies that offer car title loans in Irvine CA will follow the state guidelines for repossessions.
In the long run, it will cost you more money, time, and trouble. Get your money from the bank! But if you must, do it online and contact your lender to avoid a title loan repossession!