[greeneyes05]

I received a title loan in October of 2006 in the amount of 3600 to assist my father after he had a small stroke. I have made 24 payments totalling almost 9,000 and the balance of the loan is still almost 3600. I was recently injured at work, the worker's comp has not come through yet and Title Max is threatening repossession (and an arrest warrant) and am less than a month overdue on the payment. The payment also increases $11 each day so my original payment of 352 is now 680. Do I have any recourse? My car is the only asset I have and have been unable to secure another loan to cover this. In total I've paid 11,800 cash purchase plus the $9000 to title max. I really need help. Thanks

[this8384]

What type of interest rate did you agree to? I can't see how you've paid 2.5 times the amount you originally financed, only to have the balance remain the original amount.

Have you been late on payments before? I assume so, as you said you've only made 24 payments and it's been 27 months since you originated the loan. If you're short 3 payments, then you're much more than "less than a month behind" on the contract.

Have you contacted TitleMax to tell them that you're waiting for a compensation check?

[greeneyes05]

I have never been late on a payment-not even once, and as originally stated I am less than one month behind. I have made 24 payments, thus 2 years. 10 pmts at 402 and 14 at 352. This is a title loan, not a regular bank loan

[this8384]

I know you said you made 24 payments, which is where the problem is. You stated that you got the title loan in October of 2006. 24 payments would only pay up to November 2008 and we're in January 2009, which would mean you're at least 2 payments behind. So which is it? Have you made all the payments or have you not?

[greeneyes05]

Please don't think I'm an idiot but I wasn't thinking about it being January! I have made 26 pmts, and the December pmt was due on Dec 16. My bad...

[greeneyes05]

I did inform them about the worker's comp, and they gave me until this Friday to pay before repossession. This company has no regular grace period. Thank you for your help

[this8384]

What is your interest rate on the loan, if I can ask? It has to be impossibly high for you to not even have made a dent in the original amount.

[slowandeasy]

Those title loan places are nothing more than high interest rate loan sharks, Those places as well as cash advance places charge a high interest rate. That is why many states have outlawed them.
Ok Look at your paper work and see what interest rate you agreed to.

[Fr_Chuck]

This is normal of title places, they would have supplied you the cost of a loan, most likely 3600 would be somewhere around 18000 to 20,000 t pay it off ( my guess)

It is legal loan sharks.

You can not go to jail, unless you write them bad checks. They can sue and get a judgement and they can repo the car. Beyond that it is threats ( most of illegal)