In need of quick cash, you may be convinced by too-good-to-be-true loan promises to use your most valuable possession—your car—as collateral if you find yourself. These loans, called automobile name loans, could be misleading and may run you far more you don’t repay on time than you bargained for—or your car—if.

What exactly is a motor car Title Loan?

Car loans that are title Virginia are governed by the automobile Title Loan Act. They are high-interest loans supported by your automobile’s name as security. In the event that you miss a payment, your car or truck may be repossessed.

A car title loan term cannot be less than 120 days or more than 12 months under Virginia law. The bucks you get for a vehicle name loan cannot exceed 50% of the automobile’s “blue guide” value. You’ve got the directly to create a payment that is partial your deadline and have the best to repay the mortgage in complete before its specified maturity date without penalty.

If you don’t repay your vehicle name loan relative to your loan contract, the vehicle name loan provider may repossess and offer your vehicle to recoup any outstanding quantity which you owe. An automobile name loan provider isn’t permitted to look for a court judgment against you for just about any balance that is unpaid a vehicle name loan. Read More