Originally Posted by Micjones
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.