Vehicle title loans, similar to payday loans, are ways to trap you into high interest rates and can cause you to lose your vehicle – the one thing you need (in order to get to work) to continue to pay your debts.
Title Loan Trap
The rules and regulations are set by the lenders, and they are designed to set you up for failure. These companies have strong lobbyists which allow them to practice with such deceptive and closed-door policies. The lender will provide you fast cash on a short-term basis, minimal information is required and even less is supplied that set out the terms of these loans. Typically you have 30 days to repay the loan or they can repossess your car, and there is no guarantee they will extend your repayment period.
Title Loan Interest Rates
High interest rates are the largest drawback of these loans. You can borrow up to 40-50% of the value of your vehicle, but the interest on the loan is not regulated by the Texas legislature. As a result, the rate sometimes reaches above 100% of the loan amount. How can title lenders do this? The lenders found a loophole by using non-Texas banks to lend you the money so they don’t have to follow Texas credit rules.
Fees, Fees, Fees
Also, there are service and rollover fees that will cost your family. At the end of the day, you end up spending much higher than the loan amount or, more frequently, lose your car. Even more frequent are the threats and bully-type behavior the lenders exhibit. They will constantly call you at home and work; they will threaten you with fraud or jail; they will make you feel you have no choices.
We can assist you with these loans. We help people everyday resolve these matters, and of the clients we have represented, none have gone to jail because they filed bankruptcy to take care of their title loan.
Call us today to help with your title loans at 210-209-9088. Here at Vanhemelrijck Law Offices we offer free consultations with an attorney.