Just like any type of short term finance option, the car title loan industry is riddled with controversies. There have been umpteen stories of people falling into ridiculous amounts of debt but on the other side of the coin, there have also been numerous successful cases where the title loan has rescued borrowers.
As such, you really shouldn’t believe everything you read in relation to them. Something that cannot be disputed is that the industry probably isn’t as tightly regulated as it should be, and there are countless online firms who are in the business for the wrong reasons.
To ensure that you don’t fall into any type of car title loan trap, we’re going to now detail some of the key reasons which might suggest that an online provider is not quite what they claim to be. At this point we should probably also point you in the direction of an established provider and if you happen to be looking for a car title loan around the Orange County region, click here for more information.
The “spam” trap
This is one of the most infuriating ones for a lot of consumers. If you’ve ever been in the position where you have completed a form for a car title loan, only to see a boatload of errors returned, there is a chance that the website is deploying personal data tactics. This means that they are effectively collecting all of your information, before passing it onto third parties for a profit. They’re not actually a direct car title loan provider; although we should perhaps state that this isn’t always the case and some forms will return errors for completely legitimate reasons!
A lack of contact information
One of the biggest indications that you’re set to opt for a bad title loan provider is a lack of contact information. Unfortunately, it’s become all too easy for companies to set up their “business” online and fail to provide their customers with any sort of telephone number or decent customer service. Suffice to say, with so much money at stake, you need to be avoiding these services like the plague. If possible, give your chosen loan provider up before you take up their service.
No fine print available online
This is probably the biggest suggestion the title loan provider needs to be avoided at all costs. This is an industry which bases a lot of its policies on the fine print that it tags to products and a lot of deals don’t become clear until that disguised writing has been dissected.
Unfortunately, it’s not been unheard of for these details to be completely hidden from a website. Naturally, this should set huge alarm bells ringing and it’s in these cases in which consumers could face a whole host of problems. “Rollover” loans are one of the biggest issues associated with a lack of detail, with these seeing the consumer’s loan compounded every month meaning that it spirals out of control. This is just the tip of the iceberg though, and a lack of fine print could result in a whole host of undesirable consequences.
