Auto Title Lenders

may not make loans for more than the fair market retail value of the car. The fair market retail value is determined by common industry appraisal guides. Check in NADA to find the value. Most title loans are between $601 and $2,500.

What happens if I don’t pay off the loan?
Except when there is fraud, the only thing the Auto Title Lender can do is to take it from you and sell off the car. The lender may not sue you to repay the loan, but they will take your car. Call a lawyer if this is about to happen.

How can I know if I am getting a high interest loan?
To show the deal is a high interest loan, the lender must have the following notice on the paperwork:
“THIS IS A LOW INTEREST LOAN. YOU SHOULD GO TO ANOTHER SOURCE IF YOU HAVE THE ABILITY TO BORROW AT A LOWER RATE OF INTEREST. YOU ARE PLACING YOUR VEHICLE AT RISK IF YOU DEFAULT ON THIS LOAN.”

On signing the papers I want to get out of the deal?

You have the right to cancel the deal for one business day. You must repay the amount borrowed without interest until the close of business on the day after the date the original loan began. For example: If you get $601 on Tuesday, you must give back all the money by the end of Wednesday, but you do not have to pay any interest.

If the Auto Title Lender advertises a low interest rate at first then increases the interest rate in later renewals?
By law, the lender may not advertise or offer a lower interest rate for the original period if the interest rate increases in later renewals. For example, the lender may not advertise a 10% interest rate, if that rate increases to 25% in the renewal periods.