If you live in Dayton and find yourself short of cash, you may be tempted by the advertisements you see for getting a title loan, using your vehicle as security. Beware — these loans may be easy to get, but they are fraught with extra costs and risks, including having your vehicle repossessed should you not be able to pay back the loan as expected.
The seasoned Ohio debt-relief attorneys at Fesenmyer Cousino Weinzimmer in Columbus, Dayton and Cincinnati can help you understand the benefits and risks of title loans and also the alternatives that are available. We know that even the most well-meaning and hard-working people can find themselves drowning in debt, and we will do everything possible to help you get a fresh financial start. Even if you are faced with repossession and have a lien on your vehicle, we can often find ways to allow you to keep ownership.
An auto title loan allows you to borrow money for a short term, using the title to your vehicle as security. The good news is that it is easy to get title loans. The bad news is that you can only get small amounts, usually $500-$1,000, and that you will pay a very high rate of interest– typically an annual percentage rate of a whopping 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, the vehicle is no longer yours until the loan is paid back. If you want to sell the vehicle or transfer it, you first have to get the title back by paying off the loan.
Title loan lenders are regulated by Ohio consumer laws and statutes. Chapter 537 states that you and the lender must sign a written agreement before you get your loan. The agreement you sign must state how much you are borrowing and what your interest rate will be. The agreement must also state what can happen if you do not repay the loan — the lender can seize your vehicle, sell it and keep the proceeds up to the amount you owe, along with any reasonable expenses to cover the repossession and sale.
The agreement must state what the lender must do before repossessing your vehicle. You must be notified 10 days in advance of the time and place of the sale and have the chance to arrange to hand over the vehicle instead of having it repossessed by an agent, and you must have a chance to remove any personal property from the vehicle. Also, before the car is sold, the lender has to give you an accounting of what is owed, and you must be given the chance to get the car back by paying the loan and any reasonable expenses.
There are few requirements for getting a title loan if you own your vehicle. 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 lender puts a lien on your vehicle’s title and holds the title, but does not transfer the title from your name.
The amount you can borrow depends on the assessed value of your vehicle. You usually have to repay the loan in 30 to 60 days, at which time you get your title back.
The following is a list of some of the title loan companies operating in the Dayton area:
There may be specific situations where you can benefit from a title loan, even though the interest you will be paying is probably exorbitant. An example might be when you have a temporary shortfall but know you will have the money to repay the loan with the 30-60-day period.
However, in most situations, payday loans turn out getting you even deeper in debt and risking the loss of your vehicle. Even if the lender gives you the option of refinancing the loan, 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, there may be options for you that are better than title loans. Fortunately, filing for bankruptcy provides a way to stop repossession. Even if you already have a lien on your vehicle, you may be able to resolve your back-due car loan payments through a Chapter 13 bankruptcy and wind up keeping your vehicle.
Car-title loans are included in a bankruptcy, and you probably will be able to keep the vehicle if you continue to pay the loan. 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 in Dayton and 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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