Question:
Dear Steve,
In 2012 I got a title loan and I couldn’t pay the loan back within 30 days.
ACE told me I had 5 days to have their money at their office or they would pick up the car.
I told them to come and get they never did. They sold my account to a credit collection agency and the agency put the account on my credit file.
The account fell off my credit file this year 2020. The car is still sitting in my yard.
Can I call ACE and offer the 200.00 for the title to have the car towed to the junkyard? Will this reopen my case and go back on my credit file as a delinquent account?
Thank you.
Robert
Answer:
Dear Robert,
The problem people run into with title loans, from all companies, is that they hand over the title to a vehicle and put it up as collateral to borrow money. The title loan company will then place a lien on the car title and hold onto it until the loan is paid in full.
The fact they are not demanding the payment or it fell off your credit report has no impact on getting that lien removed from the car title.
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I bet it’s recorded on the title but you can confirm this by contacting the motor vehicle department in your state and check to see if there is a lien.
The car can’t be transferred to anyone else until that lien is removed. It can be removed by paying the entire balance due, negotiating a settlement for less than you owe, or filing bankruptcy to eliminate the obligation.
To make sure you don’t do or say anything that would restart the listing on your credit report you would be smart to talk to an attorney in your state that specializes in vehicle loan issues. One place to look for such an attorney is here.
Make sure they are licensed to practice law in your state.
Instead of having the car towed to the junkyard, you might want to talk to ACE Cash Express about having it towed to their parking lot and left since if there is a lien on the vehicle, you can’t do much without the lien released.
While that might make you emotionally feel good, the smarter move is to consult with an attorney first to protect your rights.
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