Can a title loan company take your car?

I got a title loan earlier this month because my finances were strained after my cat got sick suddenly. My mother just yelled at me over the phone for like an hour after I mentioned it. She said they could take my car. Can a title loan company take your vehicle?

Answer
I’m sorry your cat got sick, and I hope they’re feeling better. Unfortunately, a title loan company uses your car title as collateral.
By securing the car loan with your car title, the lender can take your car. This is called repossession.
Depending on where you live, your state may have enacted laws to ensure the lender gives you a heads up before they take your car. Still, it’s the Wild West in some states, so if you’ve missed payments or made partial payments, they can repossess your vehicle.
After repossessing your car, some states may require lenders to give you a warning before selling it, but this isn’t always the case. In some states, they can sell your car and keep all of the proceeds, even if it’s more than you owed.
Make sure you pay the loan back and check in with your state’s attorney general or financial office to learn what your rights are with title loans.
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Lauren Smith
Answered on Nov 23, 2021
Lauren has written for World Nomads, the Matador Network, Korvia Consulting, and once upon a time Three Fates Games. She graduated from Columbia College of Chicago with a BFA in Creative Writing. After graduating, she moved overseas and lived in South Korea where she spent her free time traveling and going on road trips with friends. She misses the rest stop potatoes and is trying to figure out how to recreate them at home. She's now based outside of Chicago and when she's not writing she spends her free time reading, playing video games, and exploring whenever she can.
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