Can title loans take your car?

One of my coworkers has been having a rough time. He said he lost his car last month. Eventually, he admitted he took out a title loan and was making partial payments, but they took his vehicle anyway. Can title loans take your car?

Answer
Title loan lenders can take your car. This is because the borrower’s car title is used as collateral to secure the loan.
If the borrower fails to make their loan payments in full, the lender can repossess the vehicle. The associated laws depend on the state you live in. Some states have enacted laws to protect consumers; in others, borrowers aren’t so lucky.
In states without restrictions, a lender can install a GPS on the vehicle when the loan is originated to make repossession easier if they don’t receive payment on time. Other states require lenders to give a heads up before repossession. This provides a chance for the borrower to retrieve personal items from the vehicle or find a way to make good on payments before the lender sells the car.
You should tell your coworker to check with your state’s attorney general and state consumer protection office to verify that the lender didn’t act illegally. He can also file a complaint with the Federal Trade Commission.
One reason people turn to title loans is because of financial strain. However, it can help to make sure you’re saving where you can. This includes your car insurance. You can ensure that you’re getting the best deal with the Jerry app. Jerry will help you compare 50+ top insurance companies and help you change providers if you find a better deal. On average, our users save $879 a year.
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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