Title loan! help!!!

Date: Tue, 09/13/2011 - 14:36

Submitted by Austxgirl26
on Tue, 09/13/2011 - 14:36

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I got a title loan a few months ago in texas for 2150. I have been paying 300 dollars every two weeks. Went in today and tried to pay another 300 dollars and they told me I had to refinance the remainder which was almost 2800 dollars and I needed to pay 500 dollars to keep the vehicle. She gave me til Saturday to come up with the other 200 dollars but then told me that every day after today there will be 1% interest put on the 200 dollars i already owe. Is there any way to get out of this mess? I havent even touched the principle of the loan its all been the interest and now they want me to pay the 2800 dollars or refinance with another 200% interest rate. Will debt consolidation help me? I cant lose my vehicle I have paid way too much already for that to happen. I need help asap please!!

Texas is a bit of a mess on this one, I am afraid. TX has a set

Texas is a bit of a mess on this one, I am afraid. TX has a set of laws in place for payday lenders and title loan lenders, but instead of using those laws, they found a loophole--they call themselves a "credit service organization". Under TX law, CSO's have very little, if any, restrictions.

The laws set aside for title lenders allows them to charge a maximum of $4 per $100 per month, plus a $10 set fee, plus the cost of recording a lien on the title. So, for a loan of $2150, the maximum finance charge they could charge you with each month would be $86 per month. But that goes right out the window when they claim themselves to be a CSO.

But wait a minute, as I read this there may be a way out from under that mess. Please contact me through private message on this forum, because I would like to ask you some questions about the place you are dealing with. It is possible that they many have overstepped their bounds on this

lrhall41

Submitted by skydivr7673 on Tue, 09/13/2011 - 15:32

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