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Debt Consolidation Forums Payday Loan help

Title Loan



Sub: Title Loan
Wed, 03/09/2008 14:58

This site is great and very information, but I didn't seem to find that much info on Title loans, so I hope someone can help me. I have a title loan. The interest payments were supposed to be monthly (i assumed), but actually are every 2 weeks. I live in IL and have filed a complaint with the IL AG Office, and am waiting to hear back. My main concern is not losing my car as it seems these people are snakes. Heres the story I had some payday loans which I paid off. After paying them off, I closed my bank account and opened new one to avoid any unwanted deposits or debits. After I closed it, I informed this company that I had via email and voicemail (I don't have an address for them) and never heard anything back. I sent the email for 3 days (until payday). The email stated that my payment was returned. I again forwarded my original email letting them know that I had to close my account and wanted an address to send a money order while I opened a new account. I received 2 emails back, 1 saying to call to discuss (and when you call, no one picks up and you get disconnected) and the 2nd one stating that I owed $916 and a payment needed to be made Western Union. I have continued to try to contact these people with no luck. I have not sent the payment because I think they have messed up. I am nervous and I don't want to lose my car. Do title loans fall under the same laws as payday loans? Does the lender have to have a liscense in IL to loan in IL? Should I get an attorney? Any help is appreciated!



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Sub: #1 I had a title loan once, but it was nothing like the sharks thisWed, 09/03/2008 - 14:58



I had a title loan once, but it was nothing like the sharks this one is dealing with...mine was no different from a regular monthly car payment. I borrowed $2600, my payoff (principal/interest) was $4173, so my payment a month was for $347.75 for 12 months. I made each payment on time each month and the loan got paid off and I got my title back. No added interest each month, no revolving interest either. Just a flat payment each month, even got a 10 day grace period after each payment was due. Now i'm in CA, not sure if IL title loans are different, but for those who are curious I got mine from Loan Mart, they only deal with certain states and are very helpful, courteous and legitimate, they even let you defer a payment if you fall on hard times....


Lukeskywalker
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Sub: #2 Find their cooporate headquaters phone number and talk to them. Wed, 09/03/2008 - 14:22



Find their cooporate headquaters phone number and talk to them. Do not sell your car. You need to pay this loan, it just will not be forgiven becuase the store is temp closed, just hang in there.

"It only takes a second to do something that you will regret for the rest of your life."

All the Best,
Luke


Unregistered

Sub: #3 title loanWed, 09/03/2008 - 14:00



My husband got a title loan on my car the first week in June. The owner died in a car wreck and the buisness is temp. closed We have someone wanting to buy my car but don't know if it is legal. We have the title but still owe 1800.00 at the title loan place. Nobody answers the phone if you call it just goes to voicemail and says that there will not a charge for any late payments. So it has been 3mnths. What should I do?


wssu91
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Sub: #4 tell our guest to go and take a nap..... :(Tue, 08/19/2008 - 04:43



tell our guest to go and take a nap..... :(


Lukeskywalker
Lukeskywalker
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Sub: #5 Thank god they can be blockedTue, 08/19/2008 - 03:18



Thank god they can be blocked

"It only takes a second to do something that you will regret for the rest of your life."

All the Best,
Luke


ladybug
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Sub: #6 I see the guest poster has nothing better to do then make snide Mon, 08/18/2008 - 21:13



I see the guest poster has nothing better to do then make snide comments that does nothing for the op...too bad they don't have any knowledgable info to provide :cry:


DOLLARSandSINCE
DOLLARSandSINCE


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Sub: #7 You're boring me...Mon, 08/18/2008 - 21:08



You're boring me...


Unregistered

Sub: #8 Enjoy as best you can, there's much more to come. Dollars, thMon, 08/18/2008 - 19:43



Enjoy as best you can, there's much more to come.

Dollars, there is magic, though it is sometimes black: it's called the "Internet."

Good luck to you.


DebtCruncher
DebtCruncher

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Sub: #9 I'm a little late to the conversation, sorry bout that. AnyMon, 08/18/2008 - 16:50



I'm a little late to the conversation, sorry bout that.

Any loan in Illinois that is secured by a car title specifically does not meet the definition of a payday loan, and therefore does not have to follow the PDL laws.

However the lender should have a CILA license and be regulated as such. If they aren't licensed, then their lien on the car could be avoidable. I would be hard-pressed to say that any storefront is operating without a license, though. These types of installment loans generally are a simple interest method, which means that interest does accrue every day that you have a balance. For the first 1/3 of the loan, almost all payments are going to interest and very little to principal. Delinquency can also play a BIG factor -- make a payment even 10 days late and there the account has earned an extra 10 days interest that comes out of your payment ....... if you ever get to be 30 days or more delinquent, you will basically owe so much interest that your payments will never touch the principal. And in Illinois the simple interest method is completely legal.

Others have given very good advice, and I can't really say much different. Your goal will be to get it paid off, I think, rather than fight the legality of it. If they are licensed, their calculations are probably correct even though you don't like it.

If you do want to go the legal route, here may be a tip ... most title loans don't actually perfect their lien with the secretary of state. Technically they are supposed to send the title to SOS with an corrected title application, to record their lien. That costs $65. The title stores usually just hold onto the title without actually recording the lien information through SOS. Therefore, when their lien is not perfected, they really are not entitled to repossess a vehicle if they have not dotted their i's and crossed their t's.

You could check with the Secretary of State to see if they have actually recorded the lien. If not, and they repo, you may have legal recourse against them.


wssu91
wssu91
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Sub: #10 So in other words, johnson will lose her car if she does not makMon, 08/18/2008 - 16:16



So in other words, johnson will lose her car if she does not make good on the loan. Can she check to see if her loan was sold to another title company? Also, can she turn them in to the AG's office and to the BBB because if she does not have a proper address to mail a payment to the title company, how in the H_________ is she going to make a payment?


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