Overhaulin'

CAR TITLE LOAN: i got a car title loan in October 2006 but I defaulted on the loan never paid (yes i know its?

my fault) the original loan was $300 pay back was $394 today i called to see how much I owe because I was gonna pay in full they say I owe $2094. And they say its $5 for everyday I dont come in. I live in Texas. Does that sound right or are they trying to get over on me?? I dont know what the usury laws are or anything. Its way more I was expecting to pay I know that. I thought maybe $1000 but not $2000 something dollars?

Public Comments

1. My question is why have they not come after the car yet? Usual procedure is to grab it as soon as possible after default. That sounds about right ot me on the fees etc. Check with your state consumer agency on the rules regarding title loans.
2. check your contract for the default terms. The cost now probably includes title transfer, collection costs, lawyer fees, and all sorts of add ons. If you still think it is too much, contact a lawyer. He might be able to negoiate a settlement at a greatly reduced amount.
3. TX actually has strict laws on usury. You may neeed an attorney to assist, but the limit is generally 6% once you're in default in TX. They also have a lot of other restrictions on title loan companies though most consumers are not aware of them.
4. I would wander why they have not yet repo'ed the car, and what were you thinking! its time to do a Monte-hall with the company or you'll 'lawyer-up'!