Can You Go to Jail for Not Paying Off a Title Loan?
The lender has to give you a notice that it is in the process of repossessing your car. If you receive this notice, it is important to act immediately and try out the different methods to get out of your title loan without losing your car.
With title loans, the consequence of defaulting on your payments is the repossession of your car. You cannot go to jail for missing out on your payments. Before your car gets repossessed, you should receive a notice from your lender that they are in the process of taking your car away.
However, many debt collectors use threats to force borrowers to pay up their debts. One of these threats is telling you that you could go to jail for not being able to pay the title loan. This is false. You cannot go to jail for defaulting on payments www.paydayloanstennessee.com/cities/camden/ on your title loan. The most that could happen is losing your car.
Were You Thinking of Getting a Title Loan? Here’s Why You Should Avoid It in The First Place
A title loan is a fast way to borrow money. You can usually get approval and get the money within the same day as long as you own a vehicle. The catch? You have to give the title of your car as a collateral in case you cannot pay the debt. The reason many people get a title loan is because it is very easy to get one. You don’t need to go through the hassle of getting a lot of paperwork to get approved. Even if you have bad credit, you can get approved for a loan as long as you have a car.