Easy title loan companies are lenders that give money to borrowers in exchange for their car titles, explains the Federal Trade Commission. This is generally for a short period of time, and these loans are usually some of the most expensive options due to high interest rates and additional lending fees.Continue Reading
When borrowers are unable to repay the title loan, the lender can take the vehicle. A title loan typically must be paid back within 30 days, the FTC notes on its Consumer.gov website. If the borrower is unable to pay the loan in full before the due date, he may have the option of rolling over the loan for another 30 days for additional fees. When a title loan lender repossesses the vehicle, the lender can sell the vehicle for a profit.
To apply for a title loan, the borrower must submit a form of identification, complete an application and surrender the title of his vehicle to the title lender, Consumer.gov explains. The borrower also must present the vehicle to the lender, who has the right to request a copy of the car key and require the borrower to purchase a roadside service plan. The Federal Trade Commission advises consumers to borrow only as much as they can successfully repay by the due date.Learn more about Credit & Lending