Request Legal Help Now - Free

Advertisement
LAWSUITS NEWS & LEGAL INFORMATION

Car Title Loan


Attorneys are investigating potential car title loan lawsuits against predatory lending companies that target financially vulnerable consumers for high-interest loans and force them to use their cars as collateral for the loan. Even though in some cases the value of the title loan is only a fraction the value of the vehicle, if the borrower defaults on the loan he or she is at risk of losing the vehicle.

FREE CAR TITLE LOAN LAWSUIT EVALUATION

Send your Car Title Loan claim to a lawyer who will review your claim at NO COST or obligation.
GET LEGAL HELP NOW

Car Title Loans

Car Title Loans Car title loans refer to loans where borrowers use the title to their car as collateral on the loan. Predatory lending companies target financially vulnerable consumers, offer them short-term, high-interest loans, and then require the borrower to use the vehicle as collateral for the loan. When the borrower defaults on the loan, the predatory lender takes possession of the vehicle, even if the amount due on the loan is a fraction the value of the vehicle and even if the borrower is only a few days late on payment.

A survey from the Federal Deposit Insurance Corporation found that more than 1.1 million US households made use of auto title loans in 2013. Court documents filed in relation to one lawsuit estimated that in 2008, more than 70 percent of title loans resulted in vehicle repossession.

Losing their vehicle makes it difficult for borrowers to continue to work, drive to important appointments, or otherwise carry out day-to-day activities. Furthermore, attempts to pay back these predatory loans can push borrowers into bankruptcy.

In some cases, the interest rate is as high as 500 percent for loans that last anywhere from a month to two years. Meanwhile, not all lenders follow the rules in the states they operate in. Some lenders, for example, operate without proper licensing in the states they offer loans. Borrowers complain they are forced to sign two documents, one with a much higher interest rate than initially agreed on. Further, some plaintiffs allege when their vehicles are repossessed and sold, they are not given the full amount made on the sale over and above what was owed on the loan.

The Federal Trade Commission and various state agencies have begun looking into car title loan companies, with action taken against companies who allegedly failed to disclose terms and costs of their loans, or who aggressively market their loans and violate FTC regulations.

Car Title Loan Lawsuits

Attorneys are now investigating lawsuits against predatory lenders across the United States, but especially in Utah and New Mexico. In some states, title loans are illegal or interest rates are capped. Other states allow title loans with no limit on the interest rate. Lawsuits allege predatory lending companies target financially desperate individuals, misrepresent the likelihood of the risk of defaulting on the loan, conceal the true costs associated with paying off the loan, and purposely misrepresent details around the sale of repossessed vehicles to ensure borrower's receive very little once their car is sold.

A class action lawsuit was filed by Judith Tichenor against New Mexico Title Loans on behalf of people who took out a loan with the company and later lost their vehicles (case number 15-810). Other lawsuits have also been filed across the US.

Car Title Loan Legal Help

If you or a loved one has suffered similar damages or injuries, please click the link below and your complaint will be sent to a lawyer who may evaluate your claim at no cost or obligation.
Last updated on

CAR TITLE LOAN LEGAL ARTICLES AND INTERVIEWS

Calls for Increased Regulation of Car Title Loans Increasing
Calls for Increased Regulation of Car Title Loans Increasing
May 5, 2017
Mansfield, TX: The advertisements are everywhere: on television, and on the radio in practically every state in the nation. Easy money, provided you own your own vehicle within a certain age parameter. If you own your car, you can qualify for a car title loan on the spot. It’s quick and easy. READ MORE

Lack of State Oversight Prompting Texas City to Act
Lack of State Oversight Prompting Texas City to Act
April 24, 2017
Abilene, TX: Texas is one of two US states (the other being New Mexico) that as yet does not observe any kind of blanket arbitration protocol for the resolution of disputes involving the car title loan. The latter is a form of financing akin to a payday loan that extends quick cash to consumers, often with no questions asked and exorbitant annual rates of interest that can run into the hundreds of percent. READ MORE

The Predatory Lending Cycle of the Car Title Loan
The Predatory Lending Cycle of the Car Title Loan
March 13, 2017
Fort Worth, TX: The greed from need cycle of car title loans is far from new. In February, 2015 the Star-Telegram (02/14/15) in Fort Worth was reporting that the average resident of Texas was about $40,000 in debt. The car title loan was one quick and easy way for Texans to deal with short-term financial crises, such as a family emergency. READ MORE

READER COMMENTS

Posted by

on
I need help with getting a lien off a vehicle that I was paying a title loan off . Once it was paid off early , the company told me to go to the dmv to obtain another title which wasn’t in the agreement but when I tried to retrieve the new title they stated that the turbo title loan still had lien on vehicle so then I called them , they seemed to have been out of business so I called the number to whom I was paying every month an they were giving me the run around an this has cause me to almost loose my vehicle numourous times an I can’t even get my vehicle plates or even drive because of this .. please I need help

Posted by

on
I got a title loan from TitleMax in alabama back in April. I did not realize the interest rate was 182.38%. They have made it very hard for me to get my title back.

Posted by

on
I borrowed 300.00 and had to pay back 345.00 in fourteen days and Ii went back to borrow 1000.00 and now they say I have to pay back 2221.28 with the APR rate at 299.999.7 percent but if I pay it back in installments it will be 3221.28 wow is that even legal

Posted by

on
I need help with a car loan that is a preitory loan . I have been injured at my job and was relieved if my duties and have been out of work and struggling to payback the high interest loan . Pls help! Mr Slovak

Posted by

on
I got a car title loan 5/23/18.
The car was repossessed after a late payment. I called to get the car back and asked if I could give them $1000 and I was told no that needed to pay the entire amount of the loan to get the car back. I didn't have that so I lost the car. Now I was served today with court papers saying that I still owe $462.66 plus interest and or late fees and lawyer fees.

Posted by

on
We were fraud at a title loan and the repossessed my vehicle they pay if off my car to get it back and then less then 24 hrs they took it again

Posted by

on
I had a loan from loanmart 3k and i already paid them 9k and there interest rate is 400% so i still owe 4k how does that make sense I live in an apartment and barely getting by please help me get out of this rediculous loan please. they are all bad 1800loanmart

Posted by

on
Hi the car I buy I got loan on and miss one payment and they come got my car and I just call them to get it back they told me I half to pay 2,0000 to get it back it's going up for sale they said I had 10 days to call will I call today

Posted by

on
Loan max in clearbrook is horrible. They repoed my car after being 3 days late. And then they woukdnt let me get my stuff out of it. And sold it withing 3 days. Dont i have a time frame to get my car back. I regret doing this but i had no choice at the time.

Posted by

on
I took out a title loan on my car for $500. After making a few payments, the car was wrecked and towed to the shop. I only had liability insurance, and I am disabled and on a fixed income so I could not afford to pay the tow fee or get it fixed. I called the loan company and told them where the car was and that I was no longer able to pay on it. They have the keys, title, and the address of where it is at yet they keep calling and harassing me about making a payment. Now, I received a letter in the mail saying that they are going to take me to magistrate court and take whatever I have that is worth $500. Can they do this???

Posted by

on
Yes I had a car tittle loan and paid it off my friend was on poa I had her taken off and she went in and they have her my tittle to my car and she has the car cause I loande it to get and then she went to get the title and now I can't get my car back so can u sue them for giving my title to someone else

Posted by

on
My name is sabrina smith and husband name is Keith Washington and we are a victim of fraud from the title loan interest so can someone contact me on this case please

Posted by

on
My wife and I fell on hard times. We took a loan out with title max in la feria, tx. The terms keep changing. I would like to know our rights.

Posted by

on
Took out a title loan in Feb 2016. Made payments for a couple of months. Became unemployed. Once I was working again, I made a few payments. Actually had someone call me and threatened to have me arrested... which is illegal. They had people call posing as Police Officers to scare me into making a payment. I went four months without making a payment. I was in an accident in December - not my fault. Car is a total loss. As part of my settlement, the lien on my car was paid in full. Title Loan company signed the lien release and agreed to mail my title back to me - all this with the insurance company. Woke up this morning and the car was gone. The title loan company had forgotten to take it off the the repo list. Had the insurance company call and the title loan company admitted they made a mistake. Took four phone calls and finally a call to the local police department to report the car stolen to finally get my car back. I am not done.

Posted by

on
I was reading that there is a limit to how long A title loan can be in wisconsin and it says 6 months get my title loan company has me paying over 2 years and can even go farther then that

Posted by

on
Hello I purchased a car back in April 2014 for $15,600. I paid a total of $7,386.1 since then and my lender Santander is telling me my payoff is $14,688 as if January 2017. I was in a bind at the time of my purchase and got slapped with a high interest loan. Now I'm stuck with a vehicle that's not worth more than $4000 dollars and I'm not sure if there's anything I can do about this. I've tried to get them to send me paper work with a breakdown of everything which I never get and they keep saying there's only 24 months of payments when I have the paperwork from my bank to prove otherwise. I've tried to pay off/settle the difference or refinance for a better rate and they won't work with me.
I'm not sure if I have any rights as I'm reading more online about Santander and their practices or if this is just a life learned lesson. :-( Look forward to hearing back soon.

Posted by

on
Hi, I got my car tile loan down to 211.00 just paid 60.00 on it before Christmas. Woke up this morning and they repro my car saying I broke a verbal agreement and now I owe 511.21 to get my car back...this wouldn't be the first time I said I would come in and didn't and they would call me 10 times harrassing me but this time they called once on the 26th of Dec...please help I might loose my job!!!

Posted by

on
someone reallyneeds to look into this for state of AZ because they havecompletely outlawed paydayloans which makes title loans very predatory. Especially due to the fact that they lie to customers and tell them they are doung a non title loan. I experienced a recent situation where the loan co was trying to convince me into a contract and insure me my car title was only needed for records. When I wrote kn the application that " per verbal contract....thos is not a title loan" they refused to push the application through. After firther investigation I found out that a majority of the companies I had spoke with all lied about the conjuctions of their Registration / title loans. This state makes it impossible to obtain rental assistance in a majority of areas so to avoid eviction in the event of job loss we're forced into further debt and auffering by unfair practices by loan companies swooping into take give hardly any financial compensation forvehochles we've workd hard to own! We should also have option for hort term payday loan options instead of doing title only loans, more so under the false pretens that we won't lose our vehichle if we default.

ADD YOUR COMMENT ON THIS ISSUE

Please read our comment guidelines before posting.


Note: Your name will be published with your comment.


Your email will only be used if a response is needed.

Are you the defendant or a subject matter expert on this topic with an opposing viewpoint? We'd love to hear your comments here as well, or if you'd like to contact us for an interview please submit your details here.

Request Legal Help Now! - Free