by "SteveLehto" (stevelehto)
Published 06/22/2017 at 08:55
by "SteveLehto" (stevelehto)
Published 06/22/2017 at 08:55
No Tags
STARS: 9
People strapped for cash will often take desperate measures to raise money - and one of the least advisable is the Title Loan. And this is something you should never do. Ever.
A title loan is where you pledge your paid-for car’s title against a loan. Sounds innocent enough, right? They are illegal in most of the country and for good reason. Most title lenders - especially the ones operating in the places where they are outlawed - charge outrageous interest and often just steal your car anyway. Even if you pay the loan as agreed.
The weird part is that in Michigan, where they are illegal, very little is being done to stop the title lenders. So, they operate with relative impunity. A few states have cracked down on them and something like 16 states have legalized the practice, presumably so it could be regulated somewhat.
Good luck with that.
My advice is not to do it at all. Here is the audio:
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And the video:
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Follow me on Twitter: @stevelehto
Hear my podcast on iTunes: Lehto’s Law
Steve Lehto has been practicing law for 25 years, almost exclusively in consumer protection and Michigan lemon law. He wrote The Lemon Law Bible and Preston Tucker and His Battle to Build the Car of Tomorrow.
This website may supply general information about the law but it is for informational purposes only. This does not create an attorney-client relationship and is not meant to constitute legal advice, so the good news is we’re not billing you by the hour for reading this. The bad news is that you shouldn’t act upon any of the information without consulting a qualified professional attorney who will, probably, bill you by the hour.
"random001" (random001)
06/22/2017 at 08:57, STARS: 2
Why would anyone do a title load when they have two perfectly good kidneys?
"SteveLehto" (stevelehto)
06/22/2017 at 08:58, STARS: 6
You must have missed my “Don’t Do A Kidney Loan!” podcast two weeks ago.
"PatBateman" (PatBateman)
06/22/2017 at 09:01, STARS: 1
Non-purchase title loans: A “payday loan” that gives the lien holder collateral and recourse.
If I didn’t have morals or ethics, I’d start one of these businesses up. There is almost no way for the company (I refuse to call it a financial institution) to lose, but multiple ways for the consumer to get screwed.
"random001" (random001)
06/22/2017 at 09:03, STARS: 0
Well, crap, I did. My bad!
"jimz" (jimz)
06/22/2017 at 09:16, STARS: 1
cripes, after listening to that I’d much sooner borrow money from guys like these:
at least you
know
what you’re getting into.
"SteveLehto" (stevelehto)
06/22/2017 at 09:16, STARS: 1
The real ones are a Purchase Money Security Interest loan. But that doesn’t roll off the tongue easily.
"SteveLehto" (stevelehto)
06/22/2017 at 09:17, STARS: 0
How’s your liver these days? You can always sell part of that.
"SteveLehto" (stevelehto)
06/22/2017 at 09:18, STARS: 0
When people get desperate they often do desperate things . . .
"random001" (random001)
06/22/2017 at 09:19, STARS: 4
Do I get a premium if I describe it as “pickled”?
"Rust and Dust - Oppositelock Forever" (rustanddust)
06/22/2017 at 09:25, STARS: 2
“For sale. One section of liver, slow marinated in Evan Williams green label for 20 years...”
"random001" (random001)
06/22/2017 at 09:30, STARS: 0
Nice!
"EL_ULY" (uly)
06/22/2017 at 09:37, STARS: 2
my fav commercial ever.....
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“I was needed gas, I was about to run out”
joking aside, those title loan people are the biggest crooks ahead of Herbalife, random banks that provide auto loans, Boxing Promotion and Washington DC. Directly preying on the poor and the hopeless. Those times I was at my worst, I even thought of maybe going by one. The blonde lady in the ad with her English accent made it seem so easy and welcoming, but I resisted obviously. Those title loan stores are literally everywhere! The cars they acquirer and sell off at ridiculous prices are a story of their own. I knew of an ex employee there that got her 2008 Cayman, 2007 Corvette and 2007 SL500 all for a combined $15,000-ish. Not in the best of shape but they are now.
"jimz" (jimz)
06/22/2017 at 09:42, STARS: 1
as long as I get to keep my drinking liver, I’m all for it.
"jimz" (jimz)
06/22/2017 at 09:44, STARS: 3
at least the mob will tell you the total amount you owe them back (loan amount plus “points.”)
at any rate, I’m pretty sure the reason our “consumer protection” doesn’t do much about this is because these situations almost exclusively affect poor people, and I’m sure plenty of the people in charge couldn’t give a flying ( bleep ) about poor people.
"shop-teacher" (shop-teacher)
06/22/2017 at 09:50, STARS: 1
Wow, it’s worse than I thought. A friend of mine (well, a former friend, but that’s another story for another time) once managed to “get away” with a title loan. Insofar as he paid it off and didn’t lose his car. I shudder to think how much that cost him. His credit score was in the 300's last I spoke to him, so that’ll give you an idea how financially savvy he is.
"jimz" (jimz)
06/22/2017 at 12:54, STARS: 1
"EL_ULY" (uly)
06/22/2017 at 13:14, STARS: 0
Oh I know that boiiiii.
I promised my wife financial stability. We will always be broke lol :]