How to Protect Yourself against Predatory Lending when Getting a Cash Title Loan
Because auto title loans are given to people with bad credit who need cash for an emergency, this market is susceptible to devious lending practices. Many lenders who operate in the subprime market practice what is known as predatory lending.
When people are desperate for cash, they are vulnerable and less likely to read the fine print, and can easily fall prey to predatory lending. You could be forced to pay exorbitant interest rates and end up agreeing to unreasonable loan terms that lead to unfair treatment.
To ensure that you do not fall prey to such lenders, before choosing a lender, it's important to know your rights, what the industry standards are, and the applicable laws. To protect yourself from predatory lenders, the first thing to do is to educate yourself about the cash title loan industry and compare different lending companies.
Because cash title loan companies cater primarily to borrowers with bad credit, they charge higher interest rates than conventional lenders. However, interest rates can fluctuate wildly between lenders within the industry. So you need to compare the interest rates offered and fully understand the annual rate of interest you will be paying.
You need to avoid predatory lenders who attempt to pressure you into signing loan agreements that feature rigid terms that are difficult to live up to. Look for a lender that offers flexible term options. This will give you more latitude for repayment, and makes it less likely that you will get into a situation where you could lose your car title.
Some states have passed laws to help protect consumers from predatory lending practices. The law in Phoenix prohibits a lender from holding the keys of a borrower's car while the loan is being repaid. This prevents the lender from repossessing a vehicle without first exhausting all other options to claim payment.
Wilshire Consumer Credit is a reputable lender that offers auto title loans in Phoenix and four other states. The advantages they offer over other lenders are flexible term options, quick approval, complete confidentiality and competitive interest rates within the industry.
Fill in the two-step form here and get approval for your auto loan within minutes!