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Submitted by on Fri, 12/12/2008 - 08:38
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How to get out of a title loan in Illinois, Ive paid double the loan and with 300%interest I still owe the whole amount?


Unfortunately in IL, the PDL laws don't apply to title loans. So basically title lenders can charge whatever interest they want, and if you sign the contract, I'm sorry to say there's not much you can do.

These are simple interest loans, which mean they charge daily interest. Payments are applied to interest before it touches the principal; so the key to paying them off, is that you need to pay more than the interest. If all you do is pay for the interest, then the balance will never go down.


Submitted by DebtCruncher on Fri, 12/12/2008 - 17:06

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Watch out bree. As other said, you can't legally sell the car while the lender has a lien on it.

There are ways to do it, and I won't say how, but if you managed to sell that car while a lien is in place you could be charged with fraud / conversion of mortgaged property.

Not to mention the lienholder could still go repossess the vehicle from whoever you "sell" it to. Naturally they will be wanting their money back if that happens, and could sue you for it.


Submitted by DebtCruncher on Tue, 04/14/2009 - 16:24

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a long time ago i got involved in a title loan, it got to the same point where i had repayed hundreds over the amount that i borrowed and still wasnt touching the principle balance. i called the place and told them to just come and get it. told them i couldnt afford to keep paying all the intrest. the guy ended up offering me a settlement and i ended up making like 2 more payments then they gave me the title back. it might not work out the same in every case, and at that point i was serious when i told them to come and get it, i wasnt bluffing. so dont say that to them unless you really dont care if they come and get it, in case they take you up on it. but most likely if you've been paying on it forever they might have the decency to offer a settlement. its hard to say, but good luck.


Submitted by bastoops on Thu, 04/16/2009 - 09:20

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Quote:

Originally Posted by Anonymous
if someone gets a title loan and the company forgets to take the title and the owner still has the title can the title loan people put a lien on the car still ???? what can happen legally ????


If they don't have the title, then they won't be able to perfect (record) their lien with the Secretary of State (through normal process). That really just means it doesn't get entered into the state's computer; it doesn't impair their rights to the vehicle.

Yes, they made a mistake by not taking the title. However, because of the inherent transaction that the loan contemplates, it would be considered "bad faith" for you not to give them the title when they realize the mistake and ask you for it.

Because the loan paperwork lists the vehicle as collateral, and you signed a legal security agreement pledging your interest thereto, they can still repossess the vehicle. (They just can't sell it without being listed on the title ... yet). They can file a replevin suit against you for the title. When they show the loan contract and your security agreement, a judge would recognize that you agreed to give them the title in taking the loan and that you're acting in bad faith by not. He'd then either order you to give up the title, or if you don't comply, he can order the Secreatary of State to issue the title in their name.

I've had the same scenario happen before when my staff get caught up and forget to take the title from the customer. I've also had times where my staff turn their back for a second and the customer snatches their title back out of the loan folder. Most times the customer understands that mistakes happen, and they bring the title back in. If not, I usually catch it in time to stop payment on those loan checks. If I'm too late to stop-payment and the customer refuses to bring us the title, then at that point I can "deem myself insecure" (legally, an event that constitutes default), declare an immediate default, take the car, and hold the vehicle until they give me the title or return of loan proceeds.


Submitted by DebtCruncher on Fri, 05/21/2010 - 17:45

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I am in a title loan when I made my first monthly interest payment I included an additional $25.00 toward the principal. The principal went down, but my monthly payment increased. When I asked the loan company what was up, they stated that when I intially applied for the loan it was for 28 days and not a full 31 days.


Submitted by on Tue, 09/07/2010 - 11:35

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Quote:

Originally Posted by Anonymous
I have a title loan on a car and I havent completely repaid the loan. Can I just request a duplicate title and sell the car?


No, you cannot. You need to repay the title loan first. You cannot sell the vehicle unless you have a clear title, which you don't.


Submitted by OhioGal1 on Thu, 09/23/2010 - 10:09

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Is there a cheaper or less costly way out of a title loan in the state of Alabama? I received $800 cash and was tld repayment amount was $1,000 but now that I have made over $600 in payments they say I still owe $1200.00 what can I do?


Submitted by on Fri, 10/01/2010 - 07:53

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