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-   -   Title Loan Sham. (http://www.chiefsplanet.com/BB/showthread.php?t=201438)

Micjones 01-30-2009 06:49 PM

Title Loan Sham.
 
I just learned how title loans work.

A friend of mine is in deep shit now that her car's been possessed.
Where in the world is the protection for borrowers?
States are allowing these businesses to run wild.

She borrowed $800 from the company in exchange for her title.
She's been making steady monthly payments, but the interest reduces those (small) payments to next-to-nothing.

As a result... The company has repossessed her car and are threatening to auction it off 15 days from now if she can't produce $2,000.

How on earth is it legal for a creditor to keep more than the borrower owed?

I thought the payday/signature loan business was bad.
This sounds worse.

kstater 01-30-2009 06:51 PM

I'd advise anyone taking any loan to read the contract 1st. Saves a lot of trouble.

Demonpenz 01-30-2009 06:51 PM

I just a couple cars like that

Dicky McElephant 01-30-2009 06:53 PM

Sorry for your friend but she shouldn't have taken one of these retarded loans out. These and check cashing places are the worst things ever.

Fritz88 01-30-2009 06:54 PM

Quote:

Originally Posted by Micjones (Post 5441563)
I just learned how title loans work.

A friend of mine is in deep shit now that her car's been possessed.
Where in the world is the protection for borrowers?
States are allowing these businesses to run wild.

She borrowed $800 from the company in exchange for her title.
She's been making steady monthly payments, but the interest reduces those (small) payments to next-to-nothing.

As a result... The company has repossessed her car and are threatening to auction it off 15 days from now if she can't produce $2,000.

How on earth is it legal for a creditor to keep more than the borrower owed?

I thought the payday/signature loan business was bad.
This sounds worse.

interest is shit and it's one of the main reasons we are in this deep shit economic downturn.

Fritz88 01-30-2009 06:54 PM

Quote:

Originally Posted by Demonpenz (Post 5441568)
I just a couple cars like that

wha?

Micjones 01-30-2009 06:54 PM

Quote:

Originally Posted by kstater (Post 5441566)
I'd advise anyone taking any loan to read the contract 1st. Saves a lot of trouble.

Indeed.

Though she was in such a bad spot she willingly took the risk to make ends meet in another area.

I just read a story about a guy in Georgia who borrowed 2 grand on his wife's car (2004 Ford Expedition) and when he was only able to pay 40% of the (first) $507 finance charge they repo'd the car and sold it. It was worth $13,000.

I think the interest on the contract was something like 25%.
What's that work out to...? Something like 300%?

That's insane!

OnTheWarpath58 01-30-2009 06:54 PM

Quote:

Originally Posted by pestilenceaf23 (Post 5441573)
Sorry for your friend but she shouldn't have taken one of these retarded loans out. These and check cashing places are the worst things ever.

This.

Quote:

How high are the interest rates?
The loan is written with an interest rate
for a short time period. For example,
the loan will show a 25% interest rate
for one month. But this rate over a year
is actually 300%. Auto Title Lenders
will usually write a loan for 30 days or
less. At the end of the month, the
lender will accept the interest payment
and allow the debt to be “rolled over”
for another month. On a $600 loan, the
interest would be approximately $150.
This means you owe $750. If you only
pay $150 for the month, you will owe
$750 the next month.

Hoover 01-30-2009 06:54 PM

Obama will get it back for her.

The title of this thread should be READ THE FU@KING CONTRACT

Micjones 01-30-2009 06:56 PM

Quote:

Originally Posted by pestilenceaf23 (Post 5441573)
Sorry for your friend but she shouldn't have taken one of these retarded loans out. These and check cashing places are the worst things ever.

Tell me about it. I worked for a signature loan company here in Kansas City a few years ago that was as predatory as anything I'd ever heard of.

People (mostly elderly) would come in and borrow something like $400 and be into this company for $1600 when it was all said and done.

There was a big expose' on this guy's business practices in The Pitch a couple years back.

Great commission checks, but I felt bad working there.

Micjones 01-30-2009 06:58 PM

Quote:

Originally Posted by Hoover (Post 5441579)
Obama will get it back for her.

The title of this thread should be READ THE FU@KING CONTRACT

She read the contract.
She was in a bind and needed the money.

Even though such practices are legal they are hardly ethical.
The state should offer protection against businesses like these.

Mr. Plow 01-30-2009 06:59 PM

Since Obama has been President, I haven't had to make a mortgage payment, a loan payment, or pay any of my utilities.

LIFE IS GREAT!!

Micjones 01-30-2009 07:01 PM

Could we kindly avoid the Obama-bashing and stay on topic?
Damn...

We could be having a conversation on car stereos and someone would find a way to slip an Obama jab in.

"And while we're on the subject of great speakers...Did you see that oath Obama flubbed?"

Mr. Plow 01-30-2009 07:04 PM

Quote:

Originally Posted by Micjones (Post 5441602)
Could we kindly avoid the Obama-bashing and stay on topic?
Damn...

We could be having a conversation on car stereos and someone would find a way to slip an Obama jab in.

"And while we're on the subject of great speakers...Did you see that oath Obama flubbed?"

Did you see how Obama couldn't stay on topic.........


Kidding.

Donger 01-30-2009 07:07 PM

Quote:

Originally Posted by Micjones (Post 5441594)
She read the contract.
She was in a bind and needed the money.

Even though such practices are legal they are hardly ethical.
The state should offer protection against businesses like these.

She read the contract, understood it, signed it and she needs "state protection?"

How about some personal responsibility?


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