What Happens If My Car Is Repossessed Because Of Late Title Loan Payments

The laws covering repossession in the State of Texas are very straightforward. A registered lender can repossess your vehicle if you take out a title loan and fall behind on the loan payments. That means you could face a repossession just days after you miss your monthly payment and the lender doesn’t even need to go to court to officially take the car or give you notice. Now that we’ve covered the heavy stuff let’s get into what happens in most situations when you fall behind on title loan payments and what you can do to avoid this from happening.

 

Why Would A Lender Not Want To Repossess Your Car

The good news is that in nearly every situation, your lender will want to avoid repossessing your vehicle. Repossessing a vehicle costs money and they would prefer not to have to deal with having your car towed and sent to auction. Excess costs add to their losses when they start the repo process, and it’s in their best interest to get you back to making payments. Besides that, they make their money off the high-interest rates you pay each month. Talk to any legitimate company that offers title loans near me 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.

 

How To Protect Yourself From A Repossession in Texas

It is vital for anyone who wants to take out an online title loan in Texas to go to a licensed loan agency or a company that is regulated by the Texas banking Department. Companies like these will all be monitored for compliance and strictly follow the Texas title lending regulations for 2023. You can find state-regulated title loan agencies using the state’s lender database or by searching online. Make sure you deal with reputable agencies fully licensed to operate within Texas.

Not all companies involved in a title loan operation are equal regarding how strict they are on regulations and how unscrupulous they can be. When looking for a reputable loan agency, you will want to ensure they have a high volume of transactions under their belt and read their certified online reviews. Take note of companies that have multiple complaints involving situations where they repossessed a vehicle. You’ll want a reputable title loan agency that appears to have a positive record of customer satisfaction.

 

How To Avoid A Title Loan Repossession

The first step is knowing the current title loan repossession laws and using that information to avoid losing your vehicle. This is easier said than done of course, because the laws and restrictions are constantly changing and each state has different statutes that regulate 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 pay back the loan quickly as a lending agency will usually not ask for extra money from you. They’re getting paid monthly with high APR payments and are perfectly happy to see the loan through to the end.

Try to pay off the loan early in one lump sum if that’s at all possible and contact customer service to see if you can renegotiate the payment terms. Consider a refinance or title loan buyout of the existing loan to get a fresh start and new financing terms for your loan.

Immediately contact your loan rep if there’s a chance of falling behind on the payments. Most local title lenders will want to work with you to keep payments current and they likely try to work out a payment plan or lower the amount owed for specific months if you’re facing financial hardship.

 

Contact your title loan company if you're facing a repo

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