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Posted: Thu Aug 14, 2008 1:04 pm Subject: Title Loan

This site is great and very information, but I didn't seem to find that much info on Title loans, so I hope someone can help me. I have a title loan. The interest payments were supposed to be monthly (i assumed), but actually are every 2 weeks. I live in IL and have filed a complaint with the IL AG Office, and am waiting to hear back. My main concern is not losing my car as it seems these people are snakes. Heres the story I had some payday loans which I paid off. After paying them off, I closed my bank account and opened new one to avoid any unwanted deposits or debits. After I closed it, I informed this company that I had via email and voicemail (I don't have an address for them) and never heard anything back. I sent the email for 3 days (until payday). The email stated that my payment was returned. I again forwarded my original email letting them know that I had to close my account and wanted an address to send a money order while I opened a new account. I received 2 emails back, 1 saying to call to discuss (and when you call, no one picks up and you get disconnected) and the 2nd one stating that I owed $916 and a payment needed to be made Western Union. I have continued to try to contact these people with no luck. I have not sent the payment because I think they have messed up. I am nervous and I don't want to lose my car. Do title loans fall under the same laws as payday loans? Does the lender have to have a liscense in IL to loan in IL? Should I get an attorney? Any help is appreciated!

Posted: Thu Aug 14, 2008 1:27 pm Subject:

Man I hope the Feds pass some good laws soon especially making it illegal to back a PDL with a title. Do they have your title? What company loaned you money and for how much? How much have you paid back?

Posted: Thu Aug 14, 2008 1:36 pm Subject:

The company is called Tulip Investments. The loan was for $1900. I have only paid back $459. $459 was suppossed to be my monthly payment, but apparently it is suppossed to be paid twice a month (I can't seem to find that wording anywhere). I do have the money to pay my next payment, but they won't give me an address.

That is the funny thing, I don't have the paperwork right in front of me, but the loan docs, are the exact same as a payday loan, they reference a finance fee and then 1 payment amount.

Posted: Thu Aug 14, 2008 2:02 pm Subject:

Sorry, yes they do have my title.

Posted: Thu Aug 14, 2008 11:39 pm Subject:

I don't want to be a pest, but does anyone have answers to my questions above? I know that there are a lot of knowlegeable people on this site and I am just hoping someone can anwswer. Thank you

Posted: Thu Aug 14, 2008 11:50 pm Subject:

Have you read over your loan docs yet?? That should list the terms of your loan and when it is due.

IMO, you cannot stop paying since this is a secured loan. Without making payments, they will have a legal right to repo your vehicle.

Posted: Fri Aug 15, 2008 5:35 am Subject:

Basically they have your title so you are kind of at their mercy. I suspect the outfit is shady at best and maybe even breaking some laws but it is like the old saying "possession is 9/10ths of the law" meaning they have possession so they have already won 9/10ths of the battle. What I would do is try to scrape up the money and settle this thing ASAP. They are not going to take partial settlment either. You will have to scrape up the payoff amount which you will need to contact them to find out what it is. Hopefully you can get one of these bozos on the phone. I think that is the easiest route and would cost you the least amount of money. I suspect you signed a bunch of documents and attached your title which means they pretty much got the best of you.

Posted: Fri Aug 15, 2008 7:09 am Subject:

Thank you for the responses. I did read through my loan docs, but they really I finally got a hold of someone there, who was extremely rude to me. I have the money to pay this payment, and am going to take the rest out of my 401k account. I just hope no one else gets caught in a trap like this, it is horrible.

Thank you again for your responses, it is just nice to talk to someone about this.

Posted: Fri Aug 15, 2008 7:46 am Subject:

I am just curious what the payoff amount is that they gave you. It shouldn't be over $1600 in my opinion. Basically you borrowed $1900 and two weeks later you paid $459 which would live you with a balance if $1441 plus some interest. $141 is a huge amount of interest for two weeks of time on $1900. That would be a 200% apr loan.

getaclue · Posted: Sat Aug 16, 2008 10:44 am Subject:

"'Possession is 9/10ths of the law' meaning they have possession so they have already won 9/10ths of the battle."

Unless it's already been repossessed, Johnson retains possession. You got it totally backwards dude.

Posted: Sat Aug 16, 2008 11:57 pm Subject:

They have his title clueless err. getalclue which is possession. It is only a matter of time before they have the car if he defaults....

HeresAclue · Posted: Sun Aug 17, 2008 10:19 am Subject:

Title is a legal concept: when a lender is on title it means they own a security interest in collateral for a loan.

Possession means physically keeping, using or controlling a thing. Not a piece of paper constituting an indicia of ownership, but actual physical use and control.

The saying possession is 9/10ths etc., if it means anything in this context, alludes to the latter physical sense.

Dollars, perhaps even you can see that physical possession of a piece of paper called a title is of less legal and practical use than physical possession of the car itself. For instance, the last time I checked, I wasn't able to drive my car's pink slip to and from work.

Furthermore, as long as the debtor here has physical possession of the car, he has something he can bargain with. Once he loses it he's pretty much screwed.

I'd find a local legal clinic or a lawyer who does free consultations; the debtor needs specific advice on how to retain possession. That is, possession of the car Dollars, not the paper.

Posted: Sun Aug 17, 2008 11:52 am Subject:

Possesion of the title is still possession. They have the title. I never implied they had possesion of the car. Once they have the title and he signed documents attaching his title to the loan it makes it a heck of a lot easier to get possession of the car if he defaults. Thats why I suggested he make good on the loan. You certainly don't need a lawyer to call up the company you borrowed money from and find it the payoff amount and make good on the loan.

Again your post is pointless cellular or whatever you want to call yourself. You spewed all your garbage just to get to the line suggesting he find some free help and yet you fail to accomplish anything. Cellular even you can see that physical possession of a piece of paper called a title is of more legal and practical use than nothing at all i.e. an unsecured loan. He has his car attached to that loan via the title which they have possession of and the penalties for defaulting are much greater than if it were unsecured. I guess we can argue semantics all day long but it still obvious at least to me that there is a lot more risk for him with a secured loan via the title then it woud have been as an unsecure loan.

JustSilly · Posted: Sun Aug 17, 2008 12:09 pm Subject:

No, Dollars.

Reread my last post. Read it slowly. There's only one possible conclusion: the car is of immense importance as long as the debtor possesses it. You're furnishing very poor advice.

Johnson need an IL lawyer familiar with these things, and that ain't you. Time to hang this one up.

Posted: Sun Aug 17, 2008 12:33 pm Subject: reply

not so fast silly one.i live in IL,and know a couple of people who have had title loans.most are a joke,but until there are reforms made like for pdl's in IL that's the way it is.it is a bad deal,but she should do what she can to make good.make no mistake about it,if she defaults they will take her car.since you and others want to push the get a lawyer down our throats.my
take only in this case is she should try to pay this off asap,if she can afford a lawyer why can't she pay?granted i'm only going to say that where this is concerned,but she should pay it or risk losing her car.now silly nugget,you can go about your stupid day.