Taking out a car title loan involves the process of borrowing funds and using your car title as collateral. In order for you to avoid having your car repossessed by the lender, you need to ensure that you make your payments in accordance with the agreed terms of the loan.
Provisions of the Law
The law provides protection for consumers whose challenging financial circumstances make it necessary for them to take out this type of title loan. It aims to restrict the interest rates charged by lenders who issue title loans.
There is also a legal requirement pertaining to binding contracts written along with other provision to ensure that the borrower has adequate protection. Car title loans continue to be a popular option because they do not credit checks and people do not have to prove that they earn a steady income.
Car Titles as Security
Car title loans serve as cash loans given to owners of titled vehicles. The title of the vehicle serves for security purposes in regards to paying back the loan. The law that is relevant to you will be dependent on the type of transaction you undertake and the legal provisions that are applicable to your lender.
The purpose of the law is to regulate the lending process and give the consumer protection in terms of aspects such as charges, repossession and sales. When agreeing on the terms of a car title loan it is important for you to have a written agreement. Sunnyvale car title loans are available for quick access to cash when you need it.
The contract between you and lender should ideally contain information such as the specific details of the vehicle that you will be providing as security. Ensure that you have your own copy of a signed agreement given to you during the carrying out of the transaction.
The law determines interest rate limits and the amount of time given to extend the term of the loan. As a borrower, you need to be aware of your rights and what is expected from the lender. You can legally redeem your vehicle if you have the required amount before its sale or make a bid for it during the sale process.
Quick Access to Cash
If you have debts that you need to clear or need to borrow money on a short term basis you can consider taking out a car title loan. If you need to get funding fast but your credit score is prohibitive, a car title loan is a worthwhile solution. This is the ideal way to borrow money without being subject to a credit check or verification of your level of income.
With car title loans, the lender assesses the value of your car and provides you a loan based on what it deems your car to be worth. The lender will possess the title of your car until you are able to repay your loan fully. In order for you to qualify for the loan, the car must be yours.