Title Loans Are Not As Easy (Or As Good!) As They Sound

Bankruptcy Decatur Amy TannerWe’ve all seen and heard the upbeat commercials where people are smiling and happy and talk about how much a title loan helped them, but it’s like the old saying, “if it sounds too good to be true, it probably isn’t true!” When you find yourself in a financial bind, however, the bright and flashy signs advertising instant cash is very tempting.

One in Five Title Loan Borrowers Lose Their Car Anyway

The Consumer Financial Protection Bureau (CFPB) recently issued a report finding that one in five people who take out a single payment auto title loan end up losing their automobile to the title loan lender for non-payment. Title loans carry a high interest rate and a short repayment period, usually 30 days. Most borrowers cannot afford to pay the title loan back in a lump sum. If not addressed, the title loan lender will repossess the automobile. This is extremely hard for most borrowers as it limits them from getting to work. If the borrower can’t get to work, it can then lead to problems and issues with other creditors. A title loan debt can be a vicious, recurrent cycle.

Four of Five Borrowers Fail to Repay Loan in Single Payment

What generally happens to most borrowers is just that, a vicious cycle of renewing the loan every month in order to keep their automobile. The CFPB study found that four out of five borrowers fail to repay the loan in a single payment. Many of these borrowers are never able to get their title back and continue paying exorbitant interest all while the automobile continues to decline in value. These loans then become a long term financial burden.

If you are having issues with a title loan as discussed, or better yet, before you pawn your car title to help with debt, contact our office nearest you to get help from one of our experienced attorneys who can help you resolve your financial burdens.

Related Information

 

 

Share This Page

Bond & Botes Law Offices

At Bond & Botes, we now offer full service bankruptcy consultation and filing over the phone or by video from the comfort and safety of your home or office. Please call 1-877-581-3396 or click here to setup your free phone or video consultation.

The lawyers at the Bond & Botes affiliated offices serve clients at offices in Anniston, Birmingham, Mobile, Montgomery, Opelika, Decatur, Huntsville, Florence, Haleyville and Gadsden, Alabama; Vicksburg, Hattiesburg and Jackson, Mississippi. Read our disclaimer here. You can view our Privacy Policy here.

Alabama Offices

Birmingham

2107 5th Avenue North
Age-Herald Building
Birmingham, Alabama 35203
Phone: (205) 802-2200


Shelby County Location
15 Southlake Lane, Ste 140
Birmingham, AL 35244
Phone: (205) 802-2200


Florence Location
121 S. Court Street
Florence, AL 35630
Phone: (256) 760-1010


Huntsville Location
225 Pratt Avenue NE
Huntsville, AL 35801
Phone: (256) 539-9899


Montgomery Location
311 Catoma Street
Montgomery, AL 36104
Phone: (334) 264-3363


Decatur Location
605 Bank Street
Decatur, AL 35601
Phone: (256) 355-2447


Haleyville Location
914 19th St.
Haleyville, AL 35565
Phone: (205) 486-3580


Gadsden Location
430-B Chestnut Street
Gadsden, AL 35901
Phone: (256) 485-0195


Opelika Location
216 South 8th Street
Opelika 36801
Phone: (334) 887-7666


Anniston Location
1302 Noble St #2C
Anniston, AL 36201
Phone: (256) 344-3559


Cullman Location
200 Second Avenue SW
Cullman, AL 35055
Phone: (256) 739-9866


Mississippi Offices

Jackson Location
5760 I-55 North, Ste 100
Jackson, MS 39211
Phone: (601) 353-5000


Hattiesburg Location
607 Corinne St, Ste B8
Hattiesburg, MS 39401
Phone: (601) 264-7200


Vicksburg Location
1212 Farmer Street
Vicksburg, MS 39180
Phone: (601) 353-5000

© 2024 by Bond & Botes Law Offices. All rights reserved. Disclaimer | Privacy Policy