TITLE LOAN
REPOSSESSIONS

The laws covering repossession in the State of Texas are very straightforward. A state-licensed lender in Texas can repossess your vehicle if you take out a title loan and fall behind on the loan payments. That means you could face repossession not long after missing your monthly payment. While Texas lending laws allow for "self-help" repossession without a court order, reputable lenders and those in cities with Unified Ordinances often offer a grace period or "Notice Of Default" as best practices. However you look at it, once you default on a title loan contract in Texas, a lender has a legal right to recover the vehicle without prior warning or notice.

Now that we've covered the heavy stuff, let's discuss what happens in most situations when you fall behind on title loan payments and what you can do to avoid this. Keep in mind that having your vehicle repossessed is scary, but it's not the end of the world. Consumer protections are in place to help you recover your vehicle, and companies offering Texas title loans must comply with the law at every step of the repossession process.

Why Would A Lender Not Want To Repossess Your Car

In nearly every situation, your lender will want to avoid repossessing your vehicle and will work with you to get back on track with the payments. Repossession costs money, and they would rather avoid the expense of hiring a tow truck driver and storing your vehicle before it's sold at auction.

Excess costs add to their losses when they start the repo process, and it's in their best interest to get you back on track with payments. Besides that, they make their money off the high interest rates you pay each month. Talk to any reputable title loan company in Texas. Most will confirm they don't want to deal with repossession and would rather have a situation where you make on-time monthly payments.

In many Texas cities, Unified Lending Ordinances require licensed lenders to only offer loans with a 25% principal reduction on each payment. These regulations can help prevent a repossession by ensuring you actually pay down your principal.

Protect Yourself From A Repossession in Texas

It is vital for anyone seeking to take out an online title loan in Texas to work with a licensed lending agency or a company regulated by the Office of Consumer Credit Commissioner. Companies like these will be closely monitored for compliance and must strictly adhere to the 2026 Texas Lending Statutes. You can find state-regulated title loan agencies using the state's lender database or searching online for local title loan companies in Texas. The best bet is to work with title loan companies that are fully licensed to operate within Texas, and ask each lender about their process if you fall behind on payments.

Most larger title loan companies in Texas have both positive and negative reviews online, which is understandable. However, title loan companies that aggressively repossess vehicles will likely have far more complaints from customers who feel they were unfairly targeted or not given due notice of a repossession.

How To Avoid A Title Loan Repossession

The first step is to familiarize yourself with the current title loan repossession laws and use that information to avoid losing your vehicle. This is easier said than done because the rules and restrictions constantly change, and each state has different statutes regulating licensed finance lenders. Most companies will offer you a title loan according to the information you provide on a credit application. Do what you can to repay the loan quickly, as a lending agency will usually not ask you to pay more each month.

If possible, pay off the loan in full and contact customer service to see if you can renegotiate the payment terms. Consider refinancing or title loan buyout of the existing loan to get a fresh start and new financing terms.

Contact your loan representative immediately if you may fall behind on payments. Most local title lenders will want to work with you to keep the payments current, and they will likely try to work out a payment plan or lower the amount owed for specific months if you're facing financial hardship.

Avoiding a title loan repossession starts with understanding your rights regarding where and how a repossession can occur in Texas. Under Texas repossession laws, your lender can recover your vehicle on public property or an accessible driveway, but they cannot breach the peace or enter a locked garage without your permission. Do not attempt to hide the vehicle or move it to another state. Instead, use the remaining time the car is in your possession to negotiate with your lender. Two options to consider in this situation are a loan deferment or a loan buyout, if possible.

Alternatives To A Repossession With Texas Title Loans

Just because your lender threatens to repossess your vehicle doesn't mean you're out of options. While the clock is certainly ticking, time is on your side, and Texas Title Loans can help you if you're in danger of losing your vehicle or if it's already been taken by your lender.

We work with multiple lenders in Texas that can refinance your existing loan. That means you may be able to secure a lower monthly payment, and you'll undoubtedly receive a lower interest rate if you qualify for a refinance. Another option is to have your original lender bought out, and you get a fresh start on a title loan with terms and payoff amounts that work for you.  We often speak with customers who are just weeks away from vehicle repossession, and we can sometimes get them pre-approved for a buyout or, at the very least, explain their consumer rights under the Texas Unified Ordinance. Keep in mind that if you're in a Texas city with Unified Lending Ordinances, a new lender can only buy out your loan if the remaining balance is below the 70% vehicle cap (often based on the car's retail value or its standard presumptive value).

Timing is everything when you're in danger of having your vehicle repossessed. A title loan buyout and some other alternatives to a repossession must be finalized before a repossession agent takes the vehicle! Once a lender has possession of your vehicle, there's not much you can do other than pay the balance owed plus repossession fees to get the car back.

Call Texas Title Loans at 844-243-3195 to learn how we can help you avoid an imminent repossession. We'll put together a new payoff estimate using just your current loan information and desired repayment terms, and there's a good chance you'll receive an estimate in under 30 minutes. There's no risk in calling us to explore new repayment terms with your current lender or to find a new loan with another lender in Texas.