Can a title loan repo your car?

I took out a title loan because I had to get an emergency root canal and didn't have dental insurance. I didn't realize I didn't have paid time off and ended up losing a few days to recover. Because my finances are kind of a house of cards, these disruptions sent the whole thing crashing down. My friend told me to be careful because title loan companies can repossess your car. Can a title loan repo your car?

Answer
I’m sorry things are rough right now, and I hope they get better. It’s true, a title loan company can repo your car. They use your car title to secure the loan, meaning that if you don’t keep up your end of the bargain, they get the car.
Know your rights and the laws in your state by checking in with your:
  • Attorney general’s office
  • State consumer protection office
Some states put restrictions on title loans that require lenders to be up front with you about repossession. This can include:
  • Telling you in advance if you’re nearing the point of repossession.
  • Giving you time to gather up personal belongings.
  • Turning over the car yourself.
  • Providing a heads up on when they’ll sell your car.
Not all states require this, though, which means you could lose your personal belongings or your car suddenly even if you’re making partial payments.
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Lauren Smith
Answered on Nov 25, 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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