Car Title Loans in Virginia = Disaster
Wednesday, June 3rd, 2015
The State Corporation Commission (SCC) just released the 2014 statistics on car title loans in Virginia and there is good news and bad news.
The good news is the number of loans is down 13%.
The bad news is an enormous amount of these loans end in disaster and it’s only going to get worse. The number of loans that are ending in repossession has climbed to 12.5% (19.368) and the number of loans in default at least 60 days is 25%! With 25% of the loans in default 60 days (these are only 12 month loans), you can bet the repossession rate is only going to go up. In case you are not alarmed by these numbers consider this. According to a report by Experian, loans to finance car purchase have far lower rates of repossession (0.62%) and only 0.67% of these loans are in default 60 days.
According to the SCC report , 38,286 Virginia car title loan borrowers failed to make a monthly payment for at least 60 days. Under Virginia law, the car title lender can no longer charge interest on these loans. We have seen several loans where the lenders are NOT following this section of the law.
If you have a car title loan and can’t repay it, please call us for legal advice and assistance at: 866-830-4501.
If you are thinking about getting a car title loan, DO NOT do it! They are a disaster waiting to happen.