5 Practical Facts About Title Loan Repossession

The whole deal with car title loans and repossessing vehicles seems quite direct and simple to us all, right? Well, the thing is that there’s more to the matter than what you know. 

Here are five practical pieces of information that can help you understand more

Repossession laws are not the same for each state

As with all state laws, repossession laws vary from a state to another. So, before you take out a loan, it is highly advisable that you carefully read your state laws, as well as, your lender’s policies. These will help protect your rights and may lead you to work out a settlement method with your lender.

It is not set in stone

Another lesser known fact is that repossession is negotiable. You can negotiate with your lender to come up with any type of payment plan. Some lenders offer the chance for their borrowers to rollover a loan; they renew said loan when borrowers fail to repay on time. Now, this is guaranteed to result in additional charges; yet, it gives borrowers a window to repay.

No one actually wants it

You might think that a title loan company is out to get you, but that’s never the case. An article published by 5 Star car title loans called title loan repossession talks all about how repossession affects all the parties involved. A lender only wants their money back, and a borrower wants their vehicle. With repossession, a lender would have to go through a long, dreary process to get their money back, and the borrower would lose their car, and in some cases, still pay up.

Repossession doesn’t mean you can walk away free

It is a common misconception that when a lender repossessed a vehicle, the debt is paid in full. What really happens is that the lender sells the repossessed vehicle at an auction. Only if the price they get pays off the accumulated debt, a borrower can walk away. In the cases where a lender fails to settle the account using money from the auction, they maintain a legal right to pursue the rest of the amount owed to the firm. In other words, repossession is only one way to pay up; it doesn’t mean the end.

Repossession only applies to the vehicle itself

This pint revolves around a legal technicality. As a person who takes out a car title loan, you have the legal right to all the items in your vehicle. A lender can only repossess and sell your vehicle, however, when it comes to the possessions inside, they’re fully yours.

When we started the article, we promised you facts that can be put to practical use, not just fun facts, or bonus information. So, how do you put these facts to use? To be concise, you should make sure you’re aware of your rights, as well as the law. In addition to that, in times of trouble with lending companies, remember that they only want you to pay off your debt; repossession isn’t their goal. So, if you think you won’t be able to pay, communicate with your lender, they’ll help you out.

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