Car title

step by step process to get out of a car title loan

[Loophole] How to Legally Get Out of a Car Title Loan

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While an auto title loan provides quick access to the equity you have in your vehicle, the loan can prove to be very expensive. According to a March 2008 Associated Press article, the interest rate for these loans can be in the triple digits, making them difficult to repay.

For example, a borrower in Missouri borrowed $2,215 and agreed to a 300-percent interest rate, according to a March 2012 case heard by the Missouri Supreme Court. After making two payments, both for more than $1,000, she had only reduced the principal balance to $2,214.94. Short of paying the entire balance, it is difficult to eliminate title loans.

Instruction Notes and Warning

Contact an attorney to determine if your contract is void or voidable in your state. A contract is void if neither party involved can complete the agreement because it breaks a law. It is voidable if it is a legal contract, but a law gives you the right to cancel it.

The interest rate on title loans made to military service members and dependents cannot be more than 36 percent.

You might be able to keep your car after declaring bankruptcy, depending on its value.

If your contract contains a forced arbitration clause that forbids you from suing, you will have to go through arbitration with a mediator assigned by the title company instead of opting to sue.

The Loophole

Step 1

Read your loan paperwork. Pay attention to the interest rate and any additional fees charged by the lender.

Step 2

Review the laws in your state regarding title loans. Many states have laws regulating the interest rate and fees charged by title lenders. If you signed a contract with an interest rate that is higher than your state allows, the contract might be void. This means that the title lender cannot force you to repay the loan.

Step 3

Claim mental incapacity if you were intoxicated when you signed for the loan. This defense is only available if the representative for the title lender knew that you were drinking. The impairment must negate your understanding of the contract for it to render the contract voidable. If you were under the legal age of consent — 18 years old in most states — the contract is voidable.

Step 4

Tell the lender that the contract is voidable and you will not pay. According to McFarland Law Group of Denver, the lender cannot repossess your vehicle if the contract is voidable.

Step 5

Declare bankruptcy. If you have no other option, seek the advice of a bankruptcy attorney to help you decide if bankruptcy is the only way you can legally get out of the loan.

 

List of states that this process may work with

  • Alabama – AL
  • Alaska – AK
  • Arizona – AZ
  • Arkansas – AR
  • California – CA
  • Colorado – CO
  • Connecticut – CT
  • Delaware – DE
  • Florida – FL
  • Georgia – GA
  • Hawaii – HI
  • Idaho – ID
  • Illinois – IL
  • Indiana – IN
  • Iowa – IA
  • Kansas – KS
  • Kentucky – KY
  • Louisiana – LA
  • Maine – ME
  • Maryland – MD
  • Massachusetts – MA
  • Michigan – MI
  • Minnesota – MN
  • Mississippi – MS
  • Missouri – MO
  • Montana – MT
  • Nebraska – NE
  • Nevada – NV
  • New Hampshire – NH
  • New Jersey – NJ
  • New Mexico – NM
  • New York – NY
  • North Carolina – NC
  • North Dakota – ND
  • Ohio – OH
  • Oklahoma – OK
  • Oregon – OR
  • Pennsylvania – PA
  • Rhode Island – RI
  • South Carolina – SC
  • South Dakota – SD
  • Tennessee – TN
  • Texas – TX
  • Utah – UT
  • Vermont – VT
  • Virginia – VA
  • Washington – WA
  • West Virginia – WV
  • Wisconsin – WI
  • Wyoming – WY

 

 

 

 

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Lost Car Title? Here’s How To Get A Duplicate Car Title In 24hrs

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So you just noticed that you can’t find the car title for some reason. Maybe you totally lost it through theft, misplaced it or it is badly defaced.

Can you imagine you are about to show the title to someone who is interested in buying your current vehicle and realize it’s gone? This leaves you looking like some type of scam artist trying to sell a car without a title.

Don’t sweat it, though; you can actually get a duplicate car title through your local department of motor vehicles within the next 24hrs.

Alright, let’s get straight to it I want to show you how to apply for a lost car title. First things first you have to go to your state’s DMV short for the department of motor vehicle website and complete a few DMV forms.

One of the forms that I am familiar with is a lost title application. This form is a must have to successfully file for a lost car title. Not all states have the same procedures for replacing a lost car title. So you have to visit your state website for more accurate information.

Also, close to about 36 states’ DMV regulations are fully guided by information available at the NMVTIS (National Motor Vehicle Title Information System). The rest are partial participants.

This is basically a consumer protection body that provides vital information on vehicle theft and any other related fraudulent deals involving participating or partially participating states registered cars.

The NMVTIS is charged with providing a safe and fast link among all car titling state agencies for title information confirmation. NMVTIS receives most of its information from individual states and this covers salvage, insurance and junk reports on vehicles.

24-hour car title replacement

If you need a title right away, you can apply for an expedited car title.
There is an additional fee for the fast processing of the title. Usually, a Requests must be submitted at a particular time and will be either shipped via UPS or available for pick-up.
You can apply in person at a number at your local DMV locations, by mail, or by phone. Phone orders are accepted and must be paid by credit card.

How long does it take to get a car title from your state’s DMV?

Even though I said that you can get your duplicate car title within 24hrs, if you’re reading this after 5 pm on a Friday then you’ll have to wait until Monday morning. Department of motor vehicles operating hours vary from state to state, but it’s pretty standard to see DMV’S open 9-5.

On average, almost all state ran agencies have the same requirements and it typically takes about 5 business days to receive your duplicate car title.

How much for duplicate car title?

All costs to get a duplicate car title vary from state to state. Some car titles will on average cost anywhere between $70 and $85 for instant replacement depending on the state this is being carried out. Payments can be done in various ways including cash, checks, credit cards, money orders or PayPal where applicable.

The DMV websites highlighted below has a search bar at the very top of the webpage. For best results, I’ve noticed that when you type a duplicate car title, it points you to the information faster. Click on your state for more current and precise information.

What is the general procedure to acquire a car title replacement?

All states have their own regulations to follow when applying for a car title replacement but in general, the steps below will give you a guideline on what you need to do.

Go to your local DMV (full service) office or visit their website to find out their location and working hours. Obtain an application for from the office if you have no access to the internet or download it from your state’s DMV website.

Find out from your state’s DMV how much you need to pay for the entire process. Some application forms normally give you a list of the documents you will be required to submit together with the application but where this is not available please ask your DMV agency for the details.

In most cases, you will be asked to provide proof of vehicle ownership by bringing with your ID, insurance, VIN which is short for Vehicle Identification Number, registration, title number, or license plate number. Include any lien information where applicable. Fill the application form by providing specific information requested by your local DMV.

Some of the commonly required information includes; Personal information such as full names of applicant, SSN (social security number), contacts, D.O.B. (date of birth), address and information about your driver’s license.

Provide information on the odometer reading, make, and model and body color of your car. Include the reason for requesting a title replacement such as theft, damage, misplacement or any other viable reason.

Finally, you are required to sign the application form. This can either be done in front of a PN (Public Notary) or a representative from the DMV office as guided by some DMV state policies. When everything is in order and checks out with the relevant authorities then it’s time to submit your application form accompanied by the payment(s) to the DMV.

The DMV can then issue you with the replacement title or have it mailed to you. For instant replacement titling, you need to be there in person to wait and collect the complete processed title certificate.

What else do I need to know?

The missing title should be reported to the state license bureau and a form should be filled as guided by your local office appropriately. From here you will be guided on how to go forward with the rest of the process.

Some states also allow you to send someone to the DMV on your behalf provided they have their ID and a copy of your plus a signed power of attorney. It is also important to note that where a close family member or friend is not available then there are numerous reputable and trusted agencies out there to carry out the title replacement procedure for you at a fee.

All of the DMV website listed below has a search bar at the very top of the webpage. For best results I’ve noticed when you type duplicate car title, it points you to the information faster. Click on your state below.

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