Title Loan Lawyers
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What Is a Title Loan?
A title loan is a loan that is secured by title to the borrower’s property. This is usually title to the person’s car; hence, title loans are often referred to as car title loans. Other names include auto title loan or pink slip loan.
The way this works is that the lender is allowed to place a lien on the person’s car. This allows the borrower to obtain the amount of funds agreed upon through the loan agreement. The borrower exchanges or surrenders title to the car; they will receive back the title once the loan amounts are paid off.
In the event that the borrower is unable to make good on their payments, the lender may possess the person’s automobile and sell it in order to obtain payments for the debt.
What Are Some Other Characteristics of Title Loans?
Title loans are often popular because the lender usually doesn’t check up on the borrower’s credit history. Thus, many people who might have difficulty securing other types of loans may have success in obtaining a car title loan.
On the other hand, title loans are often associated with relatively high interest rates. This is true even though the loan is already backed by the borrower’s title. Many lenders claim that these interest rates are necessary to protect against default, as borrowers in a title loan are often already experiencing financial hardships.
What If I Have a Dispute over a Title Loan?
Many title loan disputes involve some sort of breach of contract or a default on the payments. In some cases, the person might be contesting the lenders rights to repossess on the car title. In certain situations, the parties might be able to renegotiate the terms (i.e. loan modification). This depends however on the individual circumstances.
Other legal disputes include more widespread problems like identity theft, loan fraud, and financial law violations. These types of cases are often more serious and may involve criminal consequences in addition to civil law issues. Some disputes may result in a class action lawsuit.
Should I Hire a Lawyer for help with Title Loan issues?
Title loans can often involve some serious legal issues and disputes. It may be in your best interests to hire a qualified lawyer if you need help with any title loan issues. Your attorney can help advise you during negotiations regarding which options are best for you. If you need to file a lawsuit or attend any type of court proceeding, your lawyer can be on hand to represent you as well in court as well.
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Last Modified: 11-14-2014 04:30 PM PST
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