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.
The good news here is that in nearly every situation your lender will want to avoid having to repossess your vehicle. Repossessing a vehicle costs money and they would prefer to not have to deal with the process of having your car towed and sent to auction. There are excess costs that 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, and most will confirm they don’t want to deal with repossession and would rather have a situation where you’re making on-time monthly payments.
It is vital for anyone who wants to take out a title loan in texas to go to a licensed title loan agency or a lender who is regulated by the Texas banking Department. Companies like these are all going to be monitored for compliance and will strictly follow the Texas title lending regulations for 2022. You can find state-regulated title loan agencies by using the state’s lender database or by searching online. Make sure you deal with reputable agencies that are fully licensed to operate within Texas.
Not all companies involved in a title loan operation are equal in regards to how strict they are on regulations and how unscrupulous they can be. When you look for a reputable title loan agency, you will want to make sure they have a high volume of transactions under their belt and definitely 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.
The first step is knowing what the current title loan repossession laws are 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 are going to offer you a title loan according to the information you provide to them on a credit application. Do what you can to pay back the loan within a short time as a title loan agency will usually not ask for extra money from you. They’re getting paid each month with the 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 as a way to get a fresh start and new financing terms for your loan.
Immediately contact your loan rep if there’s even a chance of falling behind on the payments. Most local title lenders will want to work with you to keep payments current and it’s likely they try to work out a payment plan or lower the amount owed for specific months if you’re facing financial hardship.