When you need cash fast, it can be stressful enough without wondering where you are going to get the money. That is where title loans come in. Car title loans get borrowers money when they need it most, often in under 24 hours.
These short-term loans are meant to help borrowers cope with their financial stresses by giving them a bit more time to get things together. Borrowers can use the loan money to pay pressing financial needs such as emergency medical costs, unexpected bills, or for necessary home repairs. Then, they have the life of the loan to get another paycheck in the bank or figure out how they want to repay.
Title loans aren’t long term loans. They generally last from 30 to 90 days. They aren’t meant to take on long-term financial problems. What they are really great at, though, is providing financial relief at moments when life can be at its most stressful.
All a borrower needs to get started is a clear car title with no liens against it. That serves as collateral for the loan. The lender hold onto the title as a form of security during the loan’s lifetime, and once everything is repaid the title is returned to its rightful owner.
Understanding Your Rights As A Borrower
Title loans are short-term agreement between you and your lender, and under that agreement you as a borrower have some specific rights. Understanding these rights makes the lending process a whole lot faster and easier, and helps get you the best loan possible.
An important one is that a borrower has the right to keep their vehicle throughout the life of the title loan. The lender may hold onto the title as security for the loan, but the car always stays with its owner. It’s a valuable asset, and no helpful title lender would want to take that away in a time of stress.
Borrowers also have the right to thoroughly understand their loans before they sign anything. Title loans are covered under the Alabama Pawn Shop Act, which states that all lenders must provide a loan agreement that specifies:
- The amount of the loan
- The duration of the loan
- The amount to be repaid
- And a statement affirming the borrower is the rightful owner of the vehicle
All reputable lenders work within the frame of these regulations. After all, it’s in the best interest of the lender for them to make sure borrowers are protected and informed. If, however, you believe that you have done business with a lender who has abused your rights as a borrower, contact the local police department immediately to file a report.
Chief of Police for Decatur: Nadis E. Carlisle, II
Non-Emergency Phone Number for the Decatur Police Department: (256) 341-4600
You may also want to file a complaint with the Consumer Financial Protection Bureau to help protect yourself and prevent a disingenuous lender from operating in the Decatur community.
Of course, if you ever need any help understanding how state regulation impacts your loan or your lender, we are here to help. Our team is well-versed in Hunstville title loans and we are willing to work with you to ensure that you feel empowered as a borrower when you get your title loan. We also work with the best title lenders Decatur has to offer, so we can take some of the stress away by setting you up with an amazing loan in a matter of minutes. Give our office a call to talk to a loan expert, or get started online with us today.