Car Title Loan

Hello, my sister recently took out a car title loan in the amount of $1,900 from Cash Banc. I don't know to much about title loans, but she is having trouble paying it. She has made one payment of $513 which is the interest only. When she took the loan out she thought the payments were monthly, but they are every 2 weeks. Does anyone have any experience in dealing with these types of loans? If so, does she have any options?

How long ago was this, where did she take the title loan from, and what state does your sister live in?

She lives in IL, she found the company online. It is called Cash Banc, but she has received emails from them saying Loan XM. She took the loan out in June and she has made one payment in the amount of $513 and the next payment is due in a week.

i'm confused.i live in IL too,and i have questions.

1)she found it online,did she go to a storefront?
2)did she actually surrender the title?
3)every two weeks is not legal even for a title loan.

i know that last one is a statement,but i have my doubts about
this being a legit title loan.

From what she has said, she found the company online. They emailed her some forms to fill out, and she had to overnight them back with the title. She gave me copies of the loan agreement, and it has no reference to paying every two weeks.

The agreement looks just like a payday loan agreement. I have tried to do some research and I am not getting anywhere.

how does she know the payments will be drawn every 2 weeks? Could it be that it is one amount for a monthly amount, and another partial amount IF she choses to pay every 2 weeks instead?

i would have her send a letter to the IL AG about this.in the meantime,i would contact them and question the contract.if it doesn't say anything about paying every two weeks then it is a secured pdl as far as i'm concerned.i would alert the AG if i were her.

I guess she has received an email from them reminding her of her upcoming payment on the 8th. She has called them, and they told her she has to pay $513 as a finance fee every 2 weeks and if she wants to pay the loan down she has to pay above that amount.

wow, on a $1900 original loan?

I know, a little outrageous! I know the laws in IL for payday loans, but I am not sure if this falls under those laws because of the title. Does anyone know how the laws would effect this type of loan?

When I was working with the pdl's I was able to get control, but with this I am not sure how she can do it.

I really feel bad for her. I was a victim once and it was a very bad experience! These places take advantage of the people asking for finincial assistance. We're all not fortunate enough where we don't have to go to businessess like these. The should be a FEDERAL law that prohibits the outragous fee that are charged. I paid over $3000.000 on a $1000.00 loan. Boy.. I must've been very desperate! Thank God I paid it off.!! By the way, they actually did threaten to take my car once I fell a month behind. My only advice is to TRYto pay this off asap-even if it means borrowing from friends. You're better off!!!!!

Car Title loans are possibly the only things worse than PDLs. Just like the PDL trap, it is so difficult to pay these things off because of their outrageous interest; except with these things, they can take your car. I've read lots of articles where people have lost their cars for the price of one missed payment.

I can't believe she is paying $510 EVERY TWO WEEKS on a $1900. I really hope she gets out of this okay.

These are bad guys! I have a close friend who I just bailed out of a loan from CashBanc. My friend made the mistake of putting up the title to his car. On a $1900 dollar loan he made the first payment of $600 after only 2 weeks, missed the next payment and they took his car. He then had to pay off the loan $2150 after 6 weeks (all in $850 of interest in 6 weeks on a $1900 loan) and now he also has to pay a $400 towing fee, and $200 late fee almost $100 for title transfer plus various other fees that all in total just over $1,000. In total he will have paid Cash Banc $3750 dollars to have borrowed $1900 for 6 weeks. This is criminal or should be.

Warn everyone about this place they are just bad people!!!!!!!!!!!!

you are so right.unfortunately titke loans are not the same animal as pdl's or installment loans.different rules apply.i don't suggest them under any circumstance.

I also took out a car title loan with cash banc and I was told that my payments were to be $129 per mo. but in fact they want a pmt. every 2 weeks and it is interst only. If I want to pay anything on the principal, I would have to pay the whole loan at once. Theys said I was mis in formed and that this is a payday loan to be paid on next payday. My attorney is handling my case and yes they have my title.

K. Connolly
San Diego, Ca

I went to a cashpoint location today and they have very high interest rates. For a loan of 1350 I would have to pay 406 a month and all of that goes only to interest. Also i looked my van up on kelly blue book and it was worth 3 times the amount they were tring to give me.