In the rough economic times of today, many people are having trouble making ends meet and in most cases they need help just to pay their bills. For many people, obtaining a traditional loan through a bank is nearly impossible due to their bad credit history. The only way for people like this to get the money that they want is by using car title installment loans. This type of loan is perfect for people who have bad credit because all you need to get approved is the title to your car. Even though this is a great way to get money, there are some predatory lenders out there that can take advantage of you. The following are a few of the warning signs of a predatory title loan company.
Unfair Interest Rates
The first sign that you need to look for when trying to assess whether or not a lender is predatory is the interest rate they are trying to charge on your loan. The standard rate for a payday loan is anywhere from thirty to seventy percent, so if the cash advance lenders only are considering is over that, then you need to be careful. There are some reports of lenders charging a customer 300 percent on the loan that they are getting, which means that they have a lot of interest to pay back.
Another thing you need to look for is the repayment date on your loan because many predatory lenders use this against their customers. They will usually set unfair repayment dates in order to get the customer to default on their loan. Usually you should be given 30 to 90 days to pay back you loan, if you lender is trying to make you pay in a week or so, then you need to be weary.
Lack of Communication
Another sign that the company you are using is less than reputable is a total lack of communication on their part regarding your direct tribal lending installment loans. If you have questions or concerns about your existing loan and you cannot get anyone on the phone, then you may be the victim of a predatory lender.
By looking for these signs, you will be able to avoid being taken advantage of by a predatory lender. You need to also do a bit of research on prospective loan companies in order to assess their reputation and legitimacy. The more you can find out about what the companies are offering, the faster you will be able to make the right decision.