If you need cash quickly, you may be considering getting a title loan, using your vehicle as security. Before you take this step, you should know what is involved and what you are risking if things go bad: possible repossession of your vehicle.
The seasoned Ohio bankruptcy lawyers at Fesenmyer Cousino Weinzimmer in Columbus, Dayton and Cincinnati will make your case a priority and can help you understand the benefits and risks of title loans. Even if you are faced with repossession and even though there is a lien on your vehicle, there are steps you can take which will allow you to keep ownership.
An auto title loan lets a lender use the title to your vehicle as security for a short-term loan. These loans are easy to get, but they are usually for only a small amount ($500-$1,000). Interest rates are high – typically an annual percentage rate for of 300 to 700 percent. You will probably have to own the car outright or have only a small balance on your original vehicle loan to be able get the auto title loan.
Once you hand over your title, you no longer own the vehicle. If you want to sell the vehicle or transfer it, you first have to get the title back by paying off the loan.
If you own your vehicle, you probably qualify for a title loan, as there are very few underwriting requirements. There are even forms online you can fill out to start the process. You need to provide the lender with identification, pay stubs, verification of your street address, a clear title to your car, and your vehicle. You also need to provide an extra set of car keys in case you default on the loan so it’s easy for the lender to repossess the vehicle.
The assessed value of your vehicle will determine how much money you can borrow. In return for the check you receive, the lender puts a lien on your vehicle’s title. The lender holds the title, but does not transfer the title from your name.
Typically, you must repay the loan in a short time, often 30 to 60 days. You get your title back when you repay the loan in full.
In Ohio, there is also a way to obtain an auto title loan through a credit service organization (CSO). For this type of loan, the auto title lender is a broker licensed by the Ohio Department of Commerce, but does not provide the money. The loan is actually provided by a third-party lender, who is also licensed by the Ohio Department of Commerce under either the Small Loan Act or the Mortgage Loan Act. In this situation you have the advantage of dealing with licensed people, but in addition to interest, you pay a brokering fee and a fee to the third-party lender.
If you are behind on title loan payments, you have good reason to worry that the lender will repossess the vehicle, since the lender has a lien on your vehicle title as security. However, the lender may give you the option of refinancing or rolling over the loan. In this case, there will be additional fees, and as long as the lender has the lien, you cannot sell or transfer your vehicle.
If you are having cash-flow problems in general, there are options besides title loans than may be better for you can take. If you ask for an extension on some bills, many creditors will give you more time to pay. And, fortunately, bankruptcy provides a way to stop repossession. Even with a lien on your vehicle, you may be able to resolve your back-due car loan payments through a Chapter 13 bankruptcy and ultimately retain ownership of the vehicle.
Car-title loans are allowed to be included in a bankruptcy. If you list the title in your bankruptcy paperwork and show that the vehicle is worth less than or equal to what you owe on it, you probably will be able to keep the vehicle if you continue to pay the loan after your bankruptcy case closes.
Also, if your car or truck has already been repossessed, you may be able to get it back if you act promptly. Bankruptcy is a powerful legal tool that can protect you from the abuses of auto title loans. Learn how our Ohio bankruptcy law firm can help you recover and move forward.
The Ohio bankruptcy lawyers at Fesenmyer Cousino Weinzimmer in Columbus, Dayton and Cincinnati are ready to make your case an urgent priority. Time is of the essence. Take the first step toward debt relief and contact the experienced and compassionate debt-relief attorneys at Fesenmyer Cousino Weinzimmer today for a FREE INITIAL CONSULTATION.
We know what you are going through. We will evaluate your entire financial picture by looking at your income, your debts and your goals, and we will discuss the best fit for your individual situation. We will handle every phase of the process and find what works best for you.
We welcome inquiries from clients throughout central and southwestern Ohio. From our law offices in Columbus, Dayton and Cincinnati, we have helped countless Ohio residents find new hope and prevent repossession.
Delaying can only make your situation worse, so call the Ohio bankruptcy attorneys at Fesenmyer Cousino Weinzimmer today at one of our conveniently located office branches at 614-228-4435 (Columbus), 937-222-7472 (Dayton), or 877-654-5297 (Cincinnati), or email for your free consultation so we can determine what debt relief solutions will work best for you.
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