Title Loans Are A Scam You Need To Avoid
Need cash fast but can’t find anyone who will lend it to you? Have a car with a clear title? Maybe you’ve heard that you can borrow money against that title and get a “Title Loan.” Don’t.
The theory is simple: You borrow money and put up the title to your car as collateral. The sites often promise that you can have cash in hand “in minutes” which sounds quite fast when compared to the days it might take a bank to lend you money. But you will notice a few things missing from the websites. Like what the interest rate of the loan is. Or whether the lender is licensed to operate in your state.
These loans have been around for a while in a variety of forms, but have recently gained popularity as the operators have discovered how lucrative title lending can be. Search the phrase “Title Loans” and watch how many slick sites pop up. Most are fronted with pictures of attractive women, trying to hand you cash through your monitor.
Many of the title lenders out there charge exorbitant interest rates—yes, it turns out that interest rates are set by law and a lender cannot charge 500 percent APR on a personal loan. At least, not ones that follow the law.
But stories abound of title lenders who charge crazy rates, have little to no documentation, and simply charge whatever they want. And sometimes they “repossess” the collateral whenever they feel like it. And the type of person who has relied on a title loan is usually in no position to do much about it.
(Jalopnik.com)
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