Consumers who have bad credit and own their vehicle, may often consider a title loan when in a financial crunch. However, before placing your vehicle up as collateral for a loan, it’s important to consider the consequences if you fail to repay it. By Missouri law, failure to repay the loan entitles the lender to repossess the vehicle, but there are specific policies lenders must abide by during the repossession process.
According to the Division of Finance, which regulates Missouri title loan companies, the loan must be 10 days past due before any action can be taken. So a late payment that is only 5 days past due, will not result in repossession or the threat of repossession.
Once the loan is 10 days past due, the lender is required to send out the “Notice of Default and Right to Cure.” This notice states the payment amount due and the … Read More