You have been struggling for months to make payments on your title loan, and now the worst has happened: repossession. This happens without a formal warning, and the title loan company lender may not even have permission from the court. Having your car towed can be stressful, but there are steps you can take to protect yourself and possibly recover your vehicle. This piece provides all the tips to recover your vehicle and limit the damage to your credit history. Our goal is to give you the best steps and outline a course of action to move forward.
My Car Has Been Impounded By A Title Loan Lender. What Can I Do Now?
If you fail to make your monthly payments or fall behind on your monthly finance payments for a purchased vehicle, 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 if a vehicle is impounded because you’re late making title loan payments.
Ask Why Your Car Was Impounded By A Title Loan Company
It is always best to call the title loan lender to find out where your vehicle is, why it was taken, and the steps for you to get it back. If you have fallen behind in your payments, you know exactly 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 count as a default, and your car may be taken by the lender. There are also other times when a car 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
Figure out 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 car 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 basic 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 that will allow you to recover the vehicle and retrieve personal items. It also provides other details such as the date of sale and the location of the car.
- If you fail to get back your vehicle and it is auctioned off, the lender must provide a second notice called a Notice of Deficiency that confirms 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 on the car title loan. Deficiency balances are typical, especially where the monthly interest payments compound with each new payment term. If you determine that the vehicle was sold for a much lower price than the fair market, you can dispute the high deficiency balance in court.
Work on Improving Your Credit If You Can’t Afford To Risk An Impound
Car repossession stays on your credit report for up to 7 years. You don’t have to just wait for that time to pass. You can be proactive in restoring your credit by working off other debts and paying your bills on time. This way, you will have a much higher credit score by the time your negative history lapses.
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 work out 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. Also, consider applying for help with financial assistance programs. These include non-profit organizations, charities, churches, and community action agencies. They can help you pay for unexpected expenses like unpaid insurance and expired registration
What Else Would Make It Difficult to Get My Car Out Of Impound?
You may have the money and are now current with your lender, but the impound lot will require current and valid vehicle insurance. You will also need to prove the car is yours and prove you are who you say you are with active and valid personal identification. Failure to provide the required paperwork, including your driver’s license, vehicle registration and or title, and proof of insurance, may make it difficult to recover your car. Similarly, a vehicle that was impounded due to criminal activity such as road rage, reckless driving, illegal parking, or driving under the influence is hard to recover.
Can I Get Car out of Impound for Free or Get A Car Impound Loan?
If your car was wrongfully towed, you can get it back for free. You can also recover damages from the repo agent for a vehicle that was wrongfully towed. The law protects consumers against the worst of illegal towing. The same is true if your vehicle was wrongly towed or impounded by the police or a registered agent at the request of a lender. As an example, consider what happens if you take out a title loan in South Carolina. There are procedures in place to protect consumers who face a situation where their vehicle was wrongly impounded and you can even collect damages! If you can prove you have been charged excessive or unlawful towing or storage fees, you can recover up to four times the amount of those fees in small claims court. One thing to remember is that most legitimate reputable title loan lenders will follow all applicable state and federal restrictions when it comes to impound and repossession laws.
Another option is a car impound loan where you take out another loan to get your car out of impound. Of course, it’s not ideal to take out a loan to pay off another and you should really try to exhaust other options first.
Get Help from Car Title Lenders USA To Avoid A Lender Impounding Your Vehicle
It is never a good experience to have your car impounded by a car title loan lender. 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 with worries and anxiety. You can avoid this from happening by being proactive.
As soon as you are convinced you might miss a car payment, contact your lender to discuss your options. If you have any questions about car title lending or pink slip loans and how they work, contact Car Title Lenders USA today. From our website, you can easily compare our regularly updated list of car title loan companies, 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.