It’s easy to get confused when it comes to online title loans, but there are a lot of great things that title loans can do for you. When you need cash quick, a title loan can get you money in as little as 24 hours with nothing more than a clean car title.
A title loan isn’t the same as a long-term loan. Title loans are meant to get you short term cash when you need it most. The loans only last between around one and three months, and the underlying idea is that the loan gets you through to when you have the funds you need.
Instead of depending on your credit or financial record, a title loan uses your car directly as collateral. Specifically, it uses your car’s title papers. The vehicle stays with the borrower, but the lender hangs onto the title during the life of the loan. Once everything is repaid, the title comes back to the borrow right away.
Title Loan News In Alabama
New legislation in Alabama caps interest rates on short-term loans to help protect borrowers and make it easier for legal lenders to be compliant with state regulations. See what the state legislature is doing to help improve borrower’s rights and make it easier for lenders to work within state regulations.
A St. Clair County judge helps make the Alabama Pawn Shop Act clearer and more understandable for borrowers and lenders. Take a look at what parts of the Act the judge moved to reform and how it positively impacts borrowers and lenders.
Alabama has the highest number of car title loan outlets per capita. Check out different borrower’s stories and experiences from borrowers across the state and what make Alabama such a great state for title loans.
Title Loan Regulations in Alabama
The high number of title lenders in Alabama, from title loans in Birmingham to Gadsden, which means that the state has taken some pretty big steps in keeping title loans legal and beneficial to borrowers. In Alabama, title loans fall under the Alabama Pawn Shop Act, since they use a material good as collateral for a small, short-term loan.
- Under the Pawn Shop Act, a title lender is bound to regulations including:
- Monthly interest can be no more than 25 percent of the loan principal
- Lenders must be licensed with the state
- All loans must come with an agreement stating that the borrower is the original vehicle owner
- These agreements must also specify loan terms and amounts
Any lender that is not in compliance with this Act is not a true title lender. Predatory lenders exist in all types of lending, and car title loans are no exception. If you believe that you are dealing with a predatory lender, you should immediately report them to the Consumer Financial Protection Bureau. You may also want to contact local law enforcement to file a report against the company.
Chief of Police for Gadsden: John Crane
Non-Emergency Phone Number for the Gadsden Police Department: (256) 549-4500
If you are looking to better understand title loan regulations in Alabama, why title loans fall under the Alabama Pawnshop Act, or anything else regarding title lending, all you have to do is give our office a call. Our team knows Alabama title loans inside and out, and they will take the time to answer any questions you have so that you feel more comfortable with the title loan process. We can also help you find a lender in Gadsden that is state complaint and eager to help new borrowers get the cash they need when they need it.