“Dear Steve,
CAR TITLE LOANS – IS MONEY YOU BORROW – BUT THE 2500 I BORROW – I’M STILL PAYING ON IT ABOUT 5,000 I PAID – NOTHING GO THE PAYMENT LIKE A REGULAR CAR LOAN -THIS IS NOT A REGULAR CAR LOAN…..
I HAVE A LOAN W/ LONE STAR LOAN – CAR TITLE – I BORROW 2500 – PAID 5,000- I CAN’T PAY THIS LOAN – I’M LAID OFF – WHAT CAN I DO?
Nancy”
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The Answer
Dear Nancy,
Can you please tell me more about this loan? It sounds like you pledged your car as collateral for a short term loan. If you now owe double the amount I think you may have not paid off the loan by the first due date and instead have rolled the loan forward or extended the length of the loan. Is that correct?
If the contract is valid and the amount due is in accordance with your state law and the contract the best course of action is going to be for you to negotiate a solution with Lone Star Loans. If you have a valid contract, unless you can exercise your ability to negotiate a solution with them, continue your agreed payments or pay the loan off in full you risk the repossession of your car.
You can seek advice on the contract from a local attorney licensed in your state.
When it comes to car title loans, if you default they take your car.
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