People strapped for cash will often take desperate measures to raise money - and one of the least advisable is the Title Loan. And this is something you should never do. Ever.
A title loan is where you pledge your paid-for car’s title against a loan. Sounds innocent enough, right? They are illegal in most of the country and for good reason. Most title lenders - especially the ones operating in the places where they are outlawed - charge outrageous interest and often just steal your car anyway. Even if you pay the loan as agreed.
The weird part is that in Michigan, where they are illegal, very little is being done to stop the title lenders. So, they operate with relative impunity. A few states have cracked down on them and something like 16 states have legalized the practice, presumably so it could be regulated somewhat.
Good luck with that.
My advice is not to do it at all. Here is the audio:
And the video:
Follow me on Twitter: @stevelehto
Hear my podcast on iTunes: Lehto’s Law
Steve Lehto has been practicing law for 25 years, almost exclusively in consumer protection and Michigan lemon law. He wrote The Lemon Law Bible and Preston Tucker and His Battle to Build the Car of Tomorrow.
This website may supply general information about the law but it is for informational purposes only. This does not create an attorney-client relationship and is not meant to constitute legal advice, so the good news is we’re not billing you by the hour for reading this. The bad news is that you shouldn’t act upon any of the information without consulting a qualified professional attorney who will, probably, bill you by the hour.