What happens if I default?
A big question on a consumers mind when considering a car title loan is, “what happens if I default?”.
Well, it is not as colorful as the news articles and T.V. shows would like their audiences to believe. It is always in the best interest of the Lender and the Borrower to get the account back on track. However, it is the responsibility of the Borrower to communicate with the Lender about the circumstances of the past due amount. The Lender will, of course, make several attempts to contact the Borrower in hopes of resolution.
In a worst case scenario, the Lender may consider repossession as a way to recover monies when payment arrangements or communication cannot be made. Should a vehicle ever be repossessed, there is still hope for resolution! The borrower will always have the option to bring the account current or payoff the loan (depending on state regulations). And lastly, if there is no resolution, the car may be sold.
There are not many car title loan companies that want to be in the used car business; so continuing a relationship with the Borrower and leaving the Borrowers in their vehicles will always be the number one priority.