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I Might Get My Car Repossessed By LoanMart the Title Loan People. – Cynthia

“Dear Steve,

I have a loan with loanmart, I am exactly 13 days past due, and advised I will make my payment on the 15th which is in 3 days. They said I had to have payment in today or they will repossess my vehicle because it is a new loan. Last month they said my payment had to be in on time because it was a new loan and it was a first payment, and now they are saying the same thing.

I told them I will send them payment moneygram as I always do, which I had an account with them in the past. I told them if they take my vehicle it will make the situation worse because not only do I have to make that payment, then late fees. then impound fees and possible the next months payment in advance. I told them I need my car and without it I will have to pay for a bus for me and my kids to get to school and work. What can I do?

Cynthia”

Dear Cynthia,

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

I am not certain but I suspect that you are talking about 1-800LoanMart, the title loan people. A title loan works like this.

  • You need money.
  • You own your own car outright without any money owed against it.
  • You pledge your car as collateral for money borrowed against the title.
  • If you fail to pay as agreed they can take your car and sell it.

The auto title loan is a variation of the payday loan in that these are usually loans targeted towards people with bad credit or an inability to borrow from a more Main Street lender. One variation I’ve seen is the wheel loan folks that will lend you money against your fancy rims on your ride. If you don’t pay they they take the wheels off your car.

So what happens when the title loan folks take your car? They sell it for a lesser amount than it is worth and give you back the difference between what the car sold for and the loan you took out against it.

See also  TitleMax Auto Title Lender - Slapped With Millions in Fines

As much as it pains me to say this, if you can’t find anyone to help you get the note paid to avoid losing your car you might want to try a payday loan company. At least then you could borrow the money from them and prevent your car from getting taken. That would be an imperfect solution but the lesser of two evils.

Please update me on your progress by

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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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