"Auto title loan" has become a frequent household term for several Americans finding themselves in dire fiscal straits. With simplicity and ease, customers can get online or find a storefront automobile title loan creditor in Tempe Arizona to give them up to $5000 instantly based on the equity and value of their car or truck. While the lender retains the name or "pink slip" to the vehicle, the borrower is able to continue to push their car during the duration of their loan.
This type of loan is appealing to many borrowers since lenders typically do not conduct a credit rating and do not ask a whole lot of questions. With continuous employment, a bank statement showing direct deposit and minimum income requirements, and a couple of references, debtors may apply, be authorized and receive funded directly into their bank accounts within one day. This quick acquisition of capital, albeit timely and convenient, can be a hasty choice for many individuals causing some to completely ignore the truth of their financing and capacity to repay the loan.
For people who can afford to take out one of those high income loans, this may be used for its intended purpose; to provide the borrower with quick money that may be repaid within 30 days. Unfortunately, there is a high cost to pay in interest since these loans are considered "high-risk" for the lender. While the borrower's car is considered security for your loan, the creditor is still taking a huge risk in not being paid back.
So what happens when the borrower can not make the payment on their auto title loan? This is where it gets complicated! Sure, there are lenders who will work with the borrower to come up with a fair payment plan but there are people out there who take drastic steps the moment the debtor does not make good on his payment.
This is true with an Arizona girl who took out a loan for $1500. According to the girls, her payment was assumed to have been removed from her bank accounts. After several mysteriously failed attempts, the girls went to the lender's office to make good on her own payment. She was advised that she now owed $123.00 in overdue fees. In the process of attempting to solve the problem with the organization's corporate office, the payments were posted but the lender threatened to send to collections to the late fees.
Two days after, while awaiting a telephone call in the corporate office in hopes of drying things out, she awakened to find her car missing from her driveway. She was confronted with paying tens of thousands of dollars in fees, towing and storage in a bid to retrieve her vehicle. Sadly, she didn't have the money and dropped her car for good.
This isn't an isolated situation and is, sadly, the ugly section of title financing. Although there are many good auto title loan lenders on the market, perhaps not all would be the same. When looking to take out one of these loans, it is very important that customers do their research. The Internet has made it easy to compare lenders, look up rates, and understand the terms and conditions of auto title loans. Reading stories and reviews of those who have previous experience with these types of loans is also a great way to discover a trusted lender.
Knowing the consequences of not repaying the loan may save the borrower from undesirable financial problems in addition to the prospect of losing a car all together. Asking "What happens if I can't make my auto title loan payment?" May help save you from going through what one woman says is the hardest lesson learned.