You have been struggling to pay your title loan for months, and now the worst has happened: your lender repossessed your vehicle. This happens without a formal warning, and the lender may not even need permission from a court to take your car. Having your vehicle taken can be stressful, but you can take steps to protect yourself and possibly recover your vehicle. This article provides straightforward tips to recover your vehicle and limit the damage to your credit history.
A Title Loan Lender Impounded My Car. What Can I Do Now?
If you fail to make your monthly payments or fall behind on your monthly payments, your lender can take it away through legal means. A lender can either send a driver to collect the car, tow it out, or disable your vehicle by remote control so you can’t drive it until you clear things up. Here are the key steps you can take if a car is impounded because you’re late making title loan payments.
Ask Why Your Car Was Impounded
It is always best to call the title loan lender to find out where your vehicle is, why it was taken, and how to get it back. If you’ve defaulted on your loan payments, you should know why the car was impounded. However, there are several other instances when it is not that obvious. In some states, if you fail to get the insurance stipulated in a lease contract or loan, it may be a default, and the lender may take your car. Other times, a vehicle is repossessed wrongfully per individual state laws. Before jumping to conclusions, call the lender and set things straight.
Find Out If You Can Get The Vehicle Back & Out of Impound
Determine what you need to get your car out and gather all essential documents before heading to the impound lot. In most cases, a lender may let you get back the vehicle after paying the loan in full and fees. You may also work out new terms for online title loans and new payment plans with the lender. Aim at striking a favorable deal with the lender to get back your car and avoid the repossession from reflecting on your credit report.
Even if you default on your auto loan, you still have a few fundamental rights. These rights include:
- The Repo agent is barred from using force, damaging your vehicle or property, and entering a closed garage to access your car.
- You are entitled to receive a notice of intent to sell property from the lender. The notice details all terms allowing you to recover the vehicle and retrieve personal items. It also provides other details, such as the date of sale and the car’s location.
- If you fail to get back your vehicle and it is auctioned off, the lender must provide a notice confirming the sale price, storage fees, and any remaining balance you owe to the bank.
Find out if you still owe money for past due payments on a title loan.
If you can’t get back your car and it is sold off, ask if you still owe any money for back payments. Deficiency balances are typical, especially when interest payments compound with each new payment term. If you determine that the vehicle was sold much lower than the fair market, you can dispute the high deficiency balance in court.
I Can’t Afford to Get My Car out of Impound. What Are My Options?
If you cannot pay off the remaining loan balance and get your car out of impound, it is always best to contact your lender and see if you can work out a repayment plan to avoid having the car sent off for auction. See if you can refinance the online title loan or other ways to negotiate a deal. Ask for help from a friend or a family member, or sell something of value quickly to repay part of the loan and make it current with your lender. Ask for a cash advance on a credit card or an advance paycheck from your employer.
Can I Get A Car Out Of Impound For Free Or Get A Car Impound Loan?
The law protects consumers against invalid repossessions. The same is true if your car was wrongly towed or impounded by the police or a registered agent at the request of a lender. For example, consider what happens if you take out a title loan in South Carolina. There are procedures to protect consumers who face a situation where their vehicle was wrongly impounded, and you can even collect damages! If you prove you have been charged excessive or unlawful towing or storage fees, you can recover up to four times the fees in small claims court. Remember that most legitimate title loan lenders will follow all applicable state and federal restrictions regarding impound and repossession laws.
Another option is a car impound loan, where you take out another loan to get your car out of an impound lot. Of course, it’s not ideal to take out a loan to pay off another, and you should try to exhaust other options first.
Get Help from Car Title Lenders USA To Avoid A Lender Impounding Your Vehicle
Having a vehicle repossessed can have a devastating impact on your finances and professional life. It usually happens when you least expect it and can leave you worried and anxious. You can avoid this from happening by being proactive.
When convinced you might miss a car payment, contact your lender to discuss your options. If you have questions about car title lending or pink slip loans and how they work, contact Car Title Lenders USA today. You can easily compare our regularly updated list of car title loan companies from our website, saving you money and time. You can also apply for a loan directly on our site, and the application only takes a few minutes to complete