Overhaulin'

Can you be charged with fraud for defaulting on a car title loan?

I received the loan in another state. I moved back to Tx but left the car in a relatives garage in the state where I got the loan. I have been unable to make the payments. They are threatening filing fraud chareges on me. I am willing to let them repo the car.

Public Comments

1. It depends on the circumstances, but generally they can not for just defaulting on the car title loan. But if you did other things in conjunction with that they may be able to. For example you got the loan and moved to another state without making a payment(or only 1 or 2), they might have a case for fraud if they could prove you never intended to pay for the loan. Also, if you make it impossible to find the car they may consider that it is fraud(or theft). In most states it is illegal for a Repo company to enter a locked/closed garage so in effect you are hiding it from them. This along with if the relative who has it was not listed on the loan or they would have no reason to know that the car was there. While a repo is not a good thing to do and you should try and avoid it. However, if you must you need to talk to the bank. Have your relative place the car on the public street and tell the bank where to get it. Or arrange with your relative when they can come and pick it up. Eventually if you do continue to hide it they may file fraud or worse(theft) charges since they are the legal owner of the vehicle. If that happens and they really want to push it they may also charge the relative with the same thing since they do have the car.
2. no they would just take the car away. so if that is your plan on not paying then start using your toyota two feety
3. Dear Linda, Fraud is described as intentional deception. It does not sound like you have deceived these people on purpose. The company that gave you the loan is now trying to secure the default by collecting on the collateral.."the car". scare tactics like this are very common, and you should not allow yourself to be intimidated. Your first defense to this kind of abuse is to write a letter to the company, instructing them to where they can find the collateral "the car", and the liability now falls in their lap to satisfy the debt. It is cheaper for them to collect the payment than it is to repop the vehicle. they don't loose if they get you to pay. To try and repo the vehicle is an added cost they did not expect. Sounds like a fly by night loan shark. Don't worry, they sound nasty, but the law is more on your side than theirs...That's why they get mad!..lol..Good luck. Jb A website I've recommended in the past would be... http://www.safelinked.info/go.php?link=auto Best wishes