Title loans in Columbia
What is a title loan?
Also known as title pawn, title pledge or pink-slip loan, a car title loan is a short-term financial solution that makes use of the clear title to your vehicle as collateral. The car title loans are often made available for an amount of up to 25% to 50% of the value of the car. These loans, on an average, start from 0 to ,500, but they could also be availed for ,000 or more from some lenders.
Though it is a quite expensive form of credit, its instant availability in exigency makes it one of the best options to go for among a lot of cash-strapped people not only in Columbia, but almost in all those American states, where the title loans are provided. However, the other side of this hassle-free and quick cash is that 1 in 6 borrowers have had to face repossession, including repossession fees averaging half of the borrower’s outstanding loan balance.
Besides, there are lenders who offer car title loans only if you are having equity in the vehicle, even with no clear title. These loans are usually offered for fifteen or thirteen days and have a triple-digit annual percentage rate (APR) — which is truly a much higher interest rate as compared to the most forms of credit.
District of Columbia does not consist of a conspicuous existence of high-cost car-title lenders, most probably because it doesn’t sanction the product or may be they don’t have sufficient legal rates to attract high-cost car-title lenders. Interestingly, the District of Columbia had to repeal or sunset their payday or title loan authorization laws.
Columbia Title Loan Laws
Most of the title loan lenders in Columbia are governed by Consumer Loan Laws, which is controlled by the State of Georgia. On their websites, you can find terms and conditions section that mentions how your transactions and principles of conflicts of laws get affected. However, it’s a fact that hardly a few of us would like to go through each and every detail of that strenuous portion.
Here is a comprised list of all the necessary details related to Columbia title loan law that you must be aware of:
- It is the State law that authorizes, whether or not a particular car – title loan provided is appropriately based for the society. This means you must make sure that you consult the lending agency that falls way within the parameters placed by the State law. Not only will this help you remain in the legal realm of things, but in case of repossession or failure in payment of the vehicle, you can avail the consumer protection rights accordingly.
- In places such as California and South Carolina, title loans are structured to be available in larger amounts as compared to others. This is done to avoid the small loan rate cap. Thus, it is necessary for you to rectify whether or not your state falls within or outside the state credit law definition.
- While there are numerous legal loopholes that exist nonetheless; the Consumer Financial Protection Bureau is considering to initialize new regulations on car title loans. This is done to help borrowers pay their debt on time.
It is true that an increasing number of people use their vehicle to obtain a car title loan only to end up being strapped in a never-ending cycle of debt. Not many are able to spot the injustice done on them with the extra fees, charges and ridiculous amount of interest rates. You should know that the 2000 law capped annual interest rates on title loans in South Carolina at thirty percent. Still, there are many lenders who violate this law and cause trouble for their borrowers.
File a complaint here if a title loan lender in Columbia has abused your rights.
Or you can also contact below:
Chief Of Police in Columbia: William “Skip” Holbrook
Phone number (s) to lodge a complaint: Telephone (Area code is 803) 545-3510
Apply online for a title loan estimate today and receive a quote in minutes!