As is the case with payday loans and other types of non-traditional loans, some people are concerned that they will be ripped off with title loans. Most of us have heard the stories about predatory lending and know people who have been overwhelmed by debt. It may even cause some of us to question the validity of entire types of borrowing - such as payday loans or title loans.
How do you know you won't get ripped off? What can you do to protect yourself? Let's take a look at the answers to these questions.
How Do I Know I Won't Get Ripped Off?
When first doing business with any company in any industry, it can be difficult to trust them. You've never been there and don't know how honest the company is. They may be the nicest, most ethical people around - or con artists. How do you know what type of business you are dealing with, anyway?
There are unscrupulous businesses in every industry and the car title loan industry is no exception. The best way to know that you won't get ripped off is to prepare beforehand. Research the company, speak to their staff and make sure that you are comfortable with their service.
Next, let's go into greater detail on what you can do to protect yourself when obtaining a title loan.
What Can I Do to Protect Myself?
There are a few steps that you can take to make sure that a title loan company won't rip you off. First, take the following actions before you decide on a lender:
• See if the company is accredited by the Better Business Bureau. If so, that is a sign that it is a legitimate business. Also, view any complaints against the company. Additionally, you can see how long the company has been in business, as a company that has been around for a while probably has a record of strong service.
• Visit online forums to view other's experiences with a particular company and ask your own questions.
• Ask friends, family members and/or colleagues for recommendations. Some of them may have used title lenders before and be able to recommend a good company.
• Speak to the sales staff at any company that you consider. If they are friendly and informative, this is a good sign.
After you choose a lender, take the following actions:
• Borrow only what you need. Doing so will limit the amount of hidden fees and interest charges that a company can charge.
• Read the fine print. Ask any questions that you have and make sure that you understand what you are getting into.
• Obtain copies of anything that you sign. Doing so will allow you to reference the paperwork in case there is a dispute between you and the company. Also, it will help you if you end up in a legal dispute.
• Pay the loan back in accordance with the agreement. If the loan must be paid within 30 days, do everything that you can to get it paid off within that time. If it is for a longer period, pay it according to the agreed upon schedule. Doing so will limit the amount of interest that you end up paying and you will avoid having your vehicle repossessed.
Conclusion
By doing your homework and using some common sense, you can avoid being ripped off by a title lender. Remember, it is similar to any other industry out there, as there are honest and dishonest businesses in every field. So, make sure that you trust the company that you are working with and things should go just fine.