I Don’t Want to Pay TitleMax Anymore On This Title Loan


Dear Steve,

TitleMax loan 10/2019 for $1100. After the full amount payments of 180.00 for 23 months. I will have paid nearly $4300.00 back.

I’ve never been late on any payments. This is the 3rd loan I have got through them also. All payments were always on time and never went into default.

My car I’ve taken a TitleMax loan out with is no longer running.

I have paid the actual amount of the loan back and then some.

I’m basically still paying because of the high-interest rate they have.

I’m willing to give them the car to be done with this. Will this affect my credit?

The lady that I talk with has told me before that they don’t report to any credit bureaus. I asked her because I have always been in good standing with them and was hoping that it would have been reported to increase my credit score.

The only thing they could do for that was print me out a document showing all on-time payments to send to credit bureaus myself



Dear Jess,

I can certainly understand the feeling that you’ve paid enough on the loan. But the math was always not great because of the terms of the loan. These are designed to be high returning loans but then again TitleMax and others like them are taking a big risk.

It is true that title lenders don’t report to credit bureaus. As Experian says, “title lenders don’t report your payments to the credit bureaus, which means a title loan won’t help your credit scores either.”

I also did a search for suits by TMX Finance, the TitleMax parent company, and TitleMax in several states and could not locate any suits filed.

You can certainly hand the car to them if they will take it. In the past, I’ve seen title lenders not agree to that, and then the vehicle remains in the name of the borrower which leaves the person on the hook for any taxes and insurance due on the vehicle.

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You could contact your Department of Motor Vehicles and see how to cancel the license plates and avoid any uninsured penalty they may try to place against the vehicle if your insurance coverage is canceled. That really depends on your state.

If you do this your vehicle could not be driven on public roads.

Since TitleMax is a lienholder on the title, you can’t get the title until the lien is satisfied or they agree to take the car. If they do agree to repossess the car, get it in writing that they are accepting the vehicle back, but keep your license plates to return to Motor Vehicles.

Then sign the title over to TitleMax. Hopefully, they will give you a written statement they are accepting the car as the satisfaction of the balance due.

They will then sell the car at auction. Technically you would owe the difference between what you owe on the vehicle and the auction price. But it appears that TitleMax is not in a rush to sue.

Let me know what TitleMax says the process is for you handing them the car.

Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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