Atlanta Car Title Loans: Know What you are Getting Into

Availing yourself of an Atlanta car title loan may sound like a good option if you are in need of a quick loan. What is it anyway, you ask? Vehicle title loans is agreeing to the “auto title collateral” concept. It means that you are surrendering your car’s title in exchange for a loan. But before you hand over that precious certificate of title of your vehicle, know what you are really handing over as a consumer.

Automobile Title Loans: The Basics

In Atlanta, numerous pawnshops have sprouted in 1997 as a result of that state’s Car Title Loan Law. Under this law, pawnshops (or any other lending institution for that matter) offering vehicle title loans can charge up to 25% monthly interest for up to 90 days and 12% per month thereafter.

This translates to over 300% in annual interest! Furthermore, the pawnshop can seize and sell a vehicle based on consumer non-payment. It gets worse… the pawnshop owner where you got the loan can keep the proceeds from the sale of YOUR vehicle regardless of the amount of the loan you took. Of course, not all states are created equal so do check your state’s car title loan laws and for any and all updates or changes in legislation of the said loan law. Remember that it is your right as a consumer to know all this.

So before you go hand your vehicle’s certificate of title for a loan, check ALL your possible sources. In the end, maybe just walking to your community bank for a good ol’ fashion loan is still the best.

Written by: Katrina Marion

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