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Posted in Auto Loans
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dramanator

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high intrest auto title loan. 2,000 24mo. 141.23apr =7,500 wtf
141% apr

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I agree with mindjazz, these loans are not in favor of the consumer's interests. Title Loans are often financed to keep someone in a cycle of debt with high interest rates and other fees. They start out at lower interest rate such as 15% and then are continually "rolled over" on a monthly or even weekly basis. This can result in interest rates being compounded to over 300%. Overall, Title Loans are predatory in nature and you should try to consdier all other other options before taking out a Title Loan. Here is more information from a nonprofit organization about the traps of title loans: http://blog.morethanwheels.info/2015/02/14/the-truth-behind-title-loans-video/

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Yes, they can charge 300%. Title loans are sub prime loans. People go to these loans when they've exhausted other avenues usually. There is lots of fine print on these documents. The lender can attach,  find and repossess your vehicle using a GPS device, they can legally disable your vehicle if you miss your payment, some insist you provide a car key to them. They can charge  repossession fees and  they can attach insurance fees.  They can do almost anything they want.  

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