If you’ve missed your title loan payments, it’s likely that the lender will move to repossess your vehicle. This can be stressful for borrowers and their families. However, there are ways to avoid repossession of your car. If you do not have the money to pay off your loan, it’s important to try and get a new one or find another way to meet your payment obligations. Fortunately, it’s not possible to go to jail for not paying back your title loan.
When your lender starts the process of repossession, they must notify you that they are doing so. The lender must also give you a reasonable time frame to catch up on the payments you are behind on. If you can catch up on your late payments, the lender will stop the repossession process. Debt collectors may continue to contact you and call or send letters until they can reach you and have a chance to make arrangements for you to pay your loan back.
The first thing to do when you think your vehicle will be repossessed is to park it somewhere safe and secure. Ideally, you should choose a public parking lot where they can legally access it to repossess it. This will also help to protect your belongings in case of a theft by a repo agency.
You can also take steps to prevent your vehicle from being repossessed by documenting all of your items in it. This includes the license plate number of the vehicle, a description of all items in the vehicle and its estimated value. This will be helpful if you need to file a lawsuit against a lender or a repossession company for illegally taking your property.