THE BLOG

27
Jul

Title loans to Military Members-CFPB Letters Issued

Military title loan interest rates: CFPB sends warning letters to lenders regarding military allotment practices.

Military Title Loan Interest Rates Charged.

The CFPB announced that it sent warning letters this month to several companies that sell retail goods to military service members regarding their acceptance of payments made through military allotments. The military discretionary allotment system allows service members to automatically direct a portion of their paychecks to financial institutions or others of their choosing. This includes car title loan lenders. Effective January 1, 2015, Department of Defense rules were changed to prohibit active duty service members from using allotments for the following types of purchases:

  1. Vehicles, such as automobiles, motorcycles and boats
  2. Appliances or household goods, such as furniture, washers and dryers
  3. Electronics, such as laptops, tablets, cell phones and televisions
  4. Other consumer items that are tangible and moveable.
How to Start Title Loan Business

Start a Title Loan Biz

A sample CFPB warning letter advises that the Consumer Financial Protection Act “prohibits unfair, deceptive, and abusive acts and practices in connection with any transaction with a consumer for a consumer financial product or service, or the offering of a consumer financial product or service.” It also includes the following statement:

“According to your website, ————– seems to be offering
active-duty service members the option to repay loans by military allotment even after January 1, 2015, when the Department of Defense prohibited service members from allotting their pay to buy, lease, or rent personal property. We have not determined whether your conduct violates the CFPA, but we urge you to review your practices to ensure that you comply with all relevant laws.”

This notice does not waive the Bureau’s right to take action based on any violations of Federal law, including violations related to the conduct described above.

In December 2014, the CFPB announced the settlement of a lawsuit filed against a retailer selling merchandise online and in retail stores located near military bases that offered financing through retail installment contracts for alleged unlawful debt collection practices. The lawsuit included claims of alleged unfair conduct by the retailer in connection with the acceptance of payments made through allotments. In April 2015, the CFPB announced a settlement with two companies that processed military allotments and were alleged to have charged fees to service members that the companies failed to adequately disclose.

Do you want to get into the car title loan business? Tired of spending hours on Google looking for answers to your question, “How to start a title loan business.” Get our 300+ page startup Manual delivered to your inbox now! Here’s a list of all the chapters we cover: “How to Start a Title Loan Business.”


We offer 2 methods to invest in our “How to Start a Car Title Loan Business:”

  • Immediate download in Adobe Acrobat: $237.00
  • We’ll print and ship it to you: $367.00


25
Jul

How to Start a Car Title Loan Business in California

How to Start a Car Title Loan Business in California

The Title Loan Industry is Growing in California

The California Department of Business Oversight issued a Report that concluded California’s car title loan market loan transactions more than doubled between 2011 and 2014 to 106,373.

Car title loans are collateralized loans in which a borrower puts up the title to their automobile in return for a loan. In California, lenders must have a California Finance Lender’s License (CFL), a bond, and loan a minimum of $2501.

For entrepreneurs, the most appealing aspect of entering the car title loan industry in California is that the interest that can be charged by the lender is not specified by the State. In California car title loan stores we charge between 8% per month and 24% per month interest. The rate depends on a number of factors. How to start a title loan business Car title loans are offered to Californians via the Internet as well. The DBO sent out an alert last December noting that California car title loan lenders can legally charge unlimited interest rates on most loans since California state law imposes no minimum or maximum interest rate restrictions on loans of $2,500 or more. In 2014, 99 percent of all title loans made were for at least $2,500, the DBO said.

Car title loan borrowers must be made aware that the lender can repossess the automobile if a borrower fails to make payments per their loan contract.

The California Department of Business Oversight stated that the State’s No. 1 auto title lender leader in volume in 2014 was Loan Mart with 9,827 loans.

Are you an entrepreneur interested in starting a car title loan business? Are you frustrated with “Googling” all day and night to get the answers you need? Do you value your time? If you’re ready to get down to the “brass tacks” and start your own title loan business, get our “How to Start a car Title Loan Business Manual” delivered to your inbox NOW! It’s available as an immediate download in Adobe Acrobat. Want the “printed and shipped version” instead? We’ll take care of it for you. Pick your poison here! Get Our Manual

  • Immediate download in Adobe Acrobat: $237.00
  • We’ll print and ship it to you: $367.00


Title Loan Business

Title Loan Business

25
Jul

How to Start Title Loan Business in Alabama

How to start a Title Loan Business in Alabama

How to Start a Title Loan Business

How to Start a Title Loan Business in Alabama

A common question regarding how to start a car title loan business in Alabama or any other State often begins with title topics. How does a car title loan lender put the loan collateral (the car, motorcycle, RV, boat…) in the lender’s name? How to make certain a title is “clear?” How to make certain the title loan borrower applicant is really the legal owner of the collateral?

Of course, all these questions are answered in our “How to Start a Title Loan Business Manual.” Much of the work we put into our “Manual” is a result of spending many man hours on the DMV websites of all 50 States. And, we’ve learned a LOT about cat title lending as a result of operating our own stores and Internet portfolios. How to start a title loan business

Below, is a list of frequently asked questions regarding “titles” for the State of Alabama.

Alabama Vehicle Title FAQs

What year model motor vehicles does the State of Alabama title?

Where do I apply for an Alabama certificate of title?

What does it cost to make application for Alabama certificate of title?

What documents will I need to make application for Alabama certificate of title?

How long does it take to receive an Alabama title?

My lienholder is currently holding an out of state certificate of title to my vehicle. How can I apply for Alabama certificate of title when I do not have the outstanding certificate of title to surrender?

How do I apply for a replacement title?

I satisfied the lien on my vehicle and received the Alabama certificate of title with the lien released on the certificate of title. However, I subsequently lost the title. Why do I need a lien release in order to apply for a replacement Alabama certificate of title?

What year model motor vehicles does the State of Alabama title?

Every motor vehicle not more than 35 model years old which is domiciled in Alabama and is required to be registered in Alabama is required to have an Alabama certificate of title. Travel trailers and folding and collapsible camping trailers not more than 20 model years old also are required to have an Alabama certificate of title. Manufactured homes not more than 20 model years old are also required to be titled.

ALABAMA TITLE DEFINITIONS: The term motor vehicle shall include every automobile, motorcycle, mobile trailer, semitrailer, truck, truck tractor, trailer and other device that is self-propelled or drawn, in, upon, or by which any person or property is or may be transported or drawn upon a public highway except such as is moved by animal power or used exclusively upon stationary rails or tracks. Every trailer coach and travel trailer manufactured upon a chassis or undercarriage as an integral part thereof drawn by a self-propelled vehicle.

EXCLUSIONS: No Alabama certificate of title shall be obtained for:
(a) A motor vehicle more than 35 model years old or trailer more than 20 model years old.
(b) A vehicle owned by the United States or any agency thereof.
(c) A vehicle owned by a manufacturer or dealer and held for sale, even though incidentally moved on the highway or used for the purpose of testing or demonstration, or a vehicle used by a manufacturer solely for testing.
(d) A vehicle owned by a non-resident of Alabama and not required by law to be registered in Alabama.
(e) A vehicle moved solely by animal power.
(f) An implement of husbandry.
(g) Special mobile equipment.
(h) A pole trailer.
(i) ATVs.
(j) Snowmobiles.
(k) Off road vehicles.
(l) Junked vehicles.
(m) Boats.
(n)Mobile homes, travel trailers, and mobile trailers designated 1989 year models and prior year models.
(o) Utility trailers. A utility trailer is a vehicle without motive power designed to be drawn by a passenger car or pickup truck.
(p) A folding or collapsible camping trailer more than 20 model years old.
(q) A vehicle for which the Alabama license plate issuing official has verified that the current owner or operator is recorded as the owner or operator on a currently effective certificate of title issued by another state and the certificate of title is being held by the recorded lienholder.

Where do I apply for an Alabama certificate of title?

Applications for Alabama certificate of title must be made through a Designated Agent of the Alabama Department of Revenue. Designated Agents include: County License Plate Issuing Officials, all licensed Alabama motor vehicle dealers, and some financial institutions located in Alabama such as banks and credit unions. An application for replacement title can be submitted directly to the Alabama Department of Revenue by the recorded owner(s) or lienholder.

What does it cost to make application for Alabama certificate of title?
The title application fee is $15.00 for each application for Alabama certificate of title for a motor vehicle. The title application fee is $20.00 for each application for Alabama certificate of title for a manufactured home. Designated agents shall add the sum of $1.50 as the commission for each application processed. County License Plate Issuing Officials may also collect an additional $1.50 commission for each application processed to defray the cost of processing and mailing title applications. Certain counties may also have local fees which are due when an application for title is processed by that County License Plate Issuing Official. Please contact the County License Plate Issuing Official to determine if any local fees apply.

What documents will I need to make application for Alabama certificate of title?

An applicant for Alabama certificate of title must surrender the following documents to the designated agent in order to complete an application for Alabama certificate of title: (a) the outstanding manufacturer’s certificate of origin or certificate of title that is either in the applicant’s name or assigned to the applicant and any documents which support the transfer of the vehicle to the applicant; (b) if the vehicle is currently registered in a jurisdiction which does not title such vehicles, the applicant must surrender the outstanding registration documents which substantiate ownership of the vehicle. Additional documentation may be required if it cannot be determined whether the vehicle meets federal and state safety, emmissions and anti-theft standards.

How long does it take to receive an Alabama title?

Processing times may vary. If you have not received your Alabama title within a reasonable time period, please contact the Designated Agent that completed your title application for assistance. If the Designated Agent cannot provide assistance, you may contact the Title Section at titles@revenue.alabama.gov.

My lienholder is currently holding an out of state certificate of title to my vehicle. How can I apply for Alabama certificate of title when I do not have the outstanding certificate of title to surrender?

No certificate of title shall be issued for a vehicle for which the Alabama license plate issuing official has verified that the current owner or operator is listed on a currently effective certificate of title issued by another state and the certificate of title is held by a recorded lienholder.

A vehicle normally subject to the Alabama title law would be required to registered without obtaining an Alabama certificate of title first if all of the following requirements are met:
The registrant is listed as the owner or operator on the out-of-state title.
There is a lien recorded on the out-of-state certificate of title.
The title is being physically held by the lienholder and the title was not issued by one of the states listed below.
The vehicle’s owner must provide to the county licensing official a copy of the certificate of title or a print out of the title record from the state if it issues the title in electronic format.

The following is a list of states that sends the valid original title to the owner and not to the lienholder.

Applicants from these states must surrender the out-of-state title to the license plate issuing official and their vehicles will be required to be titled in the State of Alabama:
Kentucky
Maryland
Michigan (unless owner authorizes title to be mailed to lienholder)
Minnesota
Missouri
Montana (unless owner authorizes the mailing with signature)
New Jersey
New York
Oklahoma
South Dakota (unless owner indicates that title is to be mailed to lienholder)
Wisconsin
Wyoming (title may be mailed to either the owner or lienholder as requested)
If the owner has requested that a Michigan, Montana, South Dakota or Wyoming title be mailed to the lienholder, the owner must provide documentation from that state that title was mailed to the lienholder in order to be exempt from titling the vehicle in the State of Alabama.

How do I apply for a replacement title?

An application for replacement title can be submitted directly to the Alabama Department of Revenue by the recorded owner(s) or lienholder. The application fee is $15.00, non-refundable. In addition, an application for replacement title can be processed by any designated agent.
I satisfied the lien on my vehicle and received the Alabama certificate of title with the lien released on the certificate of title. However, I subsequently lost the title. Why do I need a lien release in order to apply for a replacement Alabama certificate of title?

At the time that the lien was released the Department was not notified of this fact. Therefore, when the Alabama certificate of title was lost so was the lien release.

24
Jul

11 Strategies for How to Start a Car Title Loan Business

11 Strategies for How to Start or Improve a Car Title Loan Business

Car title loans are a fact! Consumers need access to small dollar loans. Fast! Emergencies of all kinds pop up. It’s been said that 50% of U.S. residents cannot get their hands on $1000 in an emergency. Here’s a basic breakdown regarding “How to Start a Title Loan Business.”

Lacking friends and family who haven’t already been “tapped out,” a common method for solving these temporary liquidity challenges is to use the title or “pink slip” to their car to borrow some bucks.

These are high interest loans! They do not come cheap. Depending on the state, a car title loan operator will charge heavy fees for the convenience of servicing a car title loan customer in need of quick cash.

How much you ask? Let’s look at California. The rates for car title loans under the California Financial Lenders license (CFL) is not regulated for title loans above $2500.

California title lenders are currently charging 8% to 20%+ per month on the outstanding loan principal.

What’s this mean? A $3000 loan using a car title as collateral, at an 8% simple interest rate, would dictate the borrower will pay the title lender operator $240/month each and every month until the $3000 balance is paid back in full. So, if the car title lender borrower needs 10 months to payback the $3,000, that’s $2400 in fees paid to the owner of the title loan business plus the $3000 original loan principal.

How to start a car Title Loan Business

If the borrower fails to make their payments, the title loan business owner will make a call, have her repo company pickup the car, deliver it to the nearest auction and be rid of it. After paying the auction any reconditioning and auction fees, the title loan operator will deduct the amount owed by the car title loan borrower and mail any balance to the title loan borrower.

Entrepreneurs reading this typically experience delirium when contemplating the profit potential.

So, “How do you start a Car Title Loan Business?”

  1.  Look around you! Is there a car title loan business in your city? In your state? If yes, keep going. If not, there must be a problem. Perhaps car title loan businesses are illegal. Believe me! There is so much money to be made lending cash against car titles that if it isn’t already being done in your state, there must be a law against it. Find out!
  2. Walk into a competitor’s store. Look over all the walls. There is bound to be references to the legal authority granting this competitor the ability to offer car title loans. Usually, you’ll see an 800# to your State’s office of business licenses or perhaps your State Dept. for Business Oversight. Every state has a different name. Just get the number and make the call. Call and call until you get the right person. (Or refer to the Chapter in our “How to Start a Car Title Loan Business” focused on licensing in each state.)
  3. You may need a “Bond” in addition to a “License.” Use Google to find a “Bond” or pick an insurance company out of our “Manual.”
  4.  Get a car title loan from your “biggest – baddest” competitor. Use their forms and contracts to start. Have them customized by your own lawyer. (Or use the ones in our “Manual.”) GO THROUGH THE LENDING PROCESS WITH YOUR COMPETITOR! See what it feels like. Taste it. Ask questions. This is a CRITICAL moment; an opportunity to decide if you really want to proceed building a car title loan business.
  5. Learn what the minimum and maximum rates/fees are that can be charged to customers for car title loans in your state.
  6. Pick a name for your car title business. Use keywords in the title. Allow your company name to reflect what your business does. “Fast Title Loans” for example. Add the name of your city or state. Go to your county clerk and register this name. You’ll need to run this filing in your local newspaper to open a bank account. Fees are minimal.
  7. Make certain you create a business entity; an LLC, a C-Corporation, an S-Corporation, a DBA… check with your tax person and your accountant your lawyer… (If you have our “Manual,” just follow our instructions and reach out to the resources given.) You must assemble a small Team of experts in each of these fields!
  8. Get a location. You’ll need high traffic, great signage, convenient customer parking, and a good lease with an opt-out clause. (See our “Manual”. We have a lengthy Chapter devoted to this topic.) As we talk about in our “Manual,” your IDEAL location is inside a Walmart 🙂
  9. Get some great loan management software! This will cost you $100 – $200/month. It’s a MUST investment. Make certain it’s “cloud” based. Make it easy to run your business from an office, a store, or out in the field. If you offer the advantage of being able to meet your customers at a Starbucks, a parking lot, their employer’s place of business… you can beat the pants off your competitor. (See our “Manual” for loan management software providers we use and recommend.)
  10. Market the hell out of your new car title loan business! Your sign, Google PPC, Craigs list, twitter, Facebook, Pinterest, LinkedIn, direct mail, radio, TV, a mobile friendly website… Again, all this is thoroughly covered in our “How to Start a Car Title Loan Business.”
  11. Your next job? Collections! This is where it gets tricky. It’s easy to give away your money to anyone who can fog a mirror. But how do you handle the late-payers and those customers who had no plan to pay you back in the first place? Avoiding this “collection” problem begins the very first time you lay eyes on this borrower. We call this “underwriting.” This is a huge subject. Over the past 20 years, we’ve developed strategies, tactics, tools, data bases and resources to deal with this reality. BIG TOPIC! See our “Manual.”

Sorry! This is a HUGE topic. We’ll continue  “How to Start or Improve a Car Title Loan Business” in our next installment. Or, you may invest in our Manual by clicking here: “Trihouse Car Title Loan Manual.”

How to start a car Title Loan Business

22
Jul

FTC Has Lead Generators in Crosshairs Again

FTC Announces Workshop to Examine Online Lead Generation

Title Loan Marketing -Lead Generators

The Federal Trade Commission will hold a workshop on October 30, 2015, to explore the growing use of online lead generation AND TITLE LOAN MARKETING in various industries, including consumer lending and education.

How to Start Title Loan Biz

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Lead generators identify or cultivate consumer interest in a product or service, and sell the consumer “lead” information to third parties. For example, as consumers search the Internet for goods and services, they may express interest in specific topics, such as educational programs, mortgages, or small-dollar loans, and submit their personal information to the lead generator. The consumer leads sometimes contain sensitive personal and financial information that may travel through multiple online marketing entities before reaching the desired business.

The workshop, “Follow the Lead: An FTC Workshop About Online Lead Generation,” will gather a variety of stakeholders, including industry representatives, consumer advocates, and government regulators, to discuss consumer protection issues raised by the practices of the lead generation industry, such as:

How online lead generation works and its variations, depending on the industry, What types of lead generation conduct may be unlawful under the FTC Act’s prohibition against unfair or deceptive practices, Best practices for entities that generate and sell consumer leads, and How consumers can avoid unlawful conduct in the online marketplace.

The FTC is seeking research, recommendations for discussion topics, and requests for panelists in advance of the workshop. Please email any relevant information to leadgen@ftc.gov by August 25, 2015. The deadline to submit public comments about the workshop is December 20, 2015. Comments can be submitted electronically.

The workshop, which is free and open to the public, will be at the Constitution Center, 400 7th St., SW. The FTC will publish a detailed agenda at a later date. Reasonable accommodations for people with disabilities are available upon request. Requests should be submitted to Fawn Bouchard at Fbouchard@ftc.gov or 202-326-2743. Requests should be made in advance and include a detailed description of the accommodations needed and contact information.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

Are you in the title loan business? Want more leads? Need how to learn all about buying and selling title loan and payday loan leads? Get our newly updated book immediately delivered into your email inbox: How to Start a Car Title Loan Business

Title Loan Business

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21
Jul

Title Loan Profits

Car Title Loan Profits

How profitable is a title loan business? What can a car title loan business owner expect to make by lending borrowers money in return for the title to their car?

Triple digit annual percentage rates (APR) are typical for our industry. A recent Missouri State Auditor’s Report revealed the average to be 200% to nearly 400%. Illinois approached 300%. Wisconsin averages 300%.

Here’s a link to The California Department of Business Oversight Report. It reveals 53% of title loans earned 70% – 99% APR’s and business increased 17% year over year!

How to Start Title Loan Biz

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So… how profitable is a title loan business?

What’s this mean to a car title loan company? You loan $1000 and earn $99/month in interest. Your borrower pays you nearly $600 in interest over 6 months. At the end of 6 months, your borrower still owes you the $1000 principal. Not bad!

In many states, Texas for example, typical fees on a $500 loan are 25% per month; $125 month interest only. Note that these are typical rates for auto title loan companies – sometimes referred to as “pink slip loans” having stores in states/provinces with fee caps. When operating in locales not having prescribed statutes you will experience even higher APR’s.

Additionally, it’s not uncommon for auto title loan companies to minimize their APR calculations by failing to compute them properly. This is not necessarily intentional. Many operators simply do not know how to calculate an APR correctly. This is not recommended. It can lead to serious problems, particularly after you become extremely successful. You will become a target  (More on this in our How to Start a Car Title Loan Manual).

How to start a car title loan business

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17
Jul

What is a Title Loan?

California Title Loan Business Startup

Start a Title Loan Biz

A title loan is a short-term loan on your car or truck. Some lenders will make a loan on a motorcycle, boat or RV as well. To qualify for a loan, you must have the title to the vehicle in your name. If title is held in both you and your spouse’s name, both of you must apply for the car title loan.

Generally, the title to your vehicle must be “clear.” That is, you cannot owe another lien holder money against the title. Some lenders will make a car title loan if the amount owed a previous lien holder is less than 25% of the “low book” value of the vehicle. You can estimate the low book value of your vehicle here: NADA.

A “free and clear car title” means that you and/or a co-owner (spouse) own your vehicle, with no unsettled loans or judgments against it. This is a requirement to be eligible for a title loan by the majority of title loan lenders; often called “pink slip loans.”

If you do own your car, a title loan is a fast and easy way to get the money you need. All you need to bring into the title loan store is a “clear title,” valid government issued ID, and proof of income. Bring payroll stub, bank account statements, utility bill…

We offer 2 methods to invest in our “How to Start a Car Title Loan Business:”

  • Immediate download in Adobe Acrobat: $277.95
  • We’ll print and ship it to you: $397.95


You get cash and your car serves as collateral for the loan.

Car title loan lenders rarely use your credit ratings when determining your qualification for a title loan or the loan amount.

The following items are required to start the title loan approval process:

  • Clear Car Title to Your Vehicle
  • Your Vehicle (for inspection only) A few lenders still require a set of keys.
  • A Government-Issued ID
  • Proof of Income
  • Proof of Residence

The title loan process typically takes about 30 minutes. Many title lenders provide the loan proceeds in cash. Others will give the borrower a check or a debit card. Some title lenders ACH the loan proceeds into the borrower’s checking account. A lot of this depends on whether you’re an Internet car title loan lender or a “brick-n-mortar” store front lender.

The lender’s ability to refinance a title loan is subject to state laws, but it is available where applicable. Refer to our “How to Start a Title Loan Business Manual” for your state’s laws. Certain restrictions may apply. If applicable, you may refinance a loan by paying the interest and fees. Your new loan will then pay off the previous loan, which will then be due on your next pay date.
We offer 2 methods to invest in our “How to Start a Car Title Loan Business:”

  • Immediate download in Adobe Acrobat: $277.95
  • We’ll print and ship it to you: $397.95


16
Jul

Start Title Loan Business-California

Start Title Loan Business in California

You’re considering a title loan business startup? Get our “bible” and you can stop with the “Googling” and finally launch your new title loan business. Start a Title Loan Business

California Title Loan Business Startup“Title loan lenders are utilizing a section of the California Finance Lenders Law that permits virtually unlimited interest rates for certain secured loans higher than $2,500. In this case, car title lenders focused on sections 22303 and 22304 of the California Finance Lenders Law, the state’s grab bag for regulating small-scale lenders.”

NOTE: Broken links occur! Government web sites often move links!! Work your way around this from the home page.

California Title Loan Business Startup & Laws

California Department of Business Oversight

California Financial Lenders License

California Department Financial Institutions

California Department Motor Vehicles

California Industry Publications

CALIFORNIA FINANCIAL CODE

Car title loans – often called “pink slip loans” – made in California in which the consumer is allowed to drive their automobile should be made in amounts of $2501 and above. If you plan to loan 70% or less of the WHOLESALE Kelly Bluebook value, then the minimum wholesale value would be $3573.00.

Q: What licenses are available in California?

There are two state lending licenses for offering title loans. Loans made under the Autopawn Loan program are made pursuant to a California Pawnbrokers License and loans made under the Consumer Loan Program are made pursuant to a California Finance Lenders License.

Q: How much can a consumer borrow?

A: Generally you loan a percentage of the wholesale value of the vehicle, and take various factors into consideration such as the year, make, model, mileage, and condition of the vehicle. If the consumer would like to keep the car and drive it, you will also consider their debt to income ratio as well as their ability to repay the loan and make the monthly payments.

Q: What if the car is not paid off?

A: To make a title loan, the car must be paid off – or almost paid off. For example, if the consumer owes less than 25% of the wholesale value of the vehicle, the consumer may still qualify for a loan.

Q: What if the consumer has lost their title?

A: That’s OK, you can still approve the consumer for a title loan even if they do not have the Title. However, it must be a California registered vehicle, it must be paid off, and they must be the registered owner of the vehicle.

Q: What if the vehicle is not registered in the title loan applicant’s name?

A: If the consumer has the title to the vehicle and it was signed off properly by the previous owner, the consumer is still eligible for a title loan.

Q: What if it is an out of state title?

A: Generally the consumer is still eligible for a car title loan with an out of state title as long as the vehicle is paid off and the name of the consumer appears on the title as the registered owner of the vehicle.

Regarding car title loans, the loans are governed by the California Finance Lenders Law.

The law, part of the state Financial Code, applies to secured loans of relatively small amounts that are not regulated by other statutes.

The loans do not fall under California’s loose definition of predatory lending, which applies primarily to loans that are false or misleading.

Usury laws are not a factor. According to the state attorney general’s office, these laws aren’t applicable to lending institutions such as banks, pawnbrokers and other finance companies.

The lenders are utilizing a section of the California Finance Lenders Law that permits virtually unlimited interest rates for certain secured loans higher than $2,500. In this case, car title lenders focused on sections 22303 and 22304 of the California Finance Lenders Law, the state’s grab bag for regulating small-scale lenders.

The first section lays out rules for interest rates charged by licensed lenders. The second stipulates that these rules don’t apply to any loan worth more than $2,500.

“We spoke to lawyers about this,” said Gladstone at Growth Resource Group, based in San Juan Capistrano. “They determined that this allows us to charge any interest rate the market will bear for loans over $2,500.”

He says his firm was the first to offer car-title loans in California in 1995. Competitors soon showed up, Gladstone says, creating a robust market in which interest rates can vary from 60 percent to 120 percent.

He estimates the size of the California car title loan market at about $20 million. It’s limited, Gladstone says, because lenders in this state must offer larger loans than elsewhere to be profitable, which requires customers in turn to own vehicles of commensurate value.

In other states, where car title loans are typically for under $1,000, it’s common for junkers to be used as collateral.

Gladstone acknowledges that he operates in a gray area of the law. But he believes he’s done nothing wrong. “The proper interpretation of the Financial Code,” he said, “is that if they don’t prohibit it, it must be legal.”

Dimitry Pertsovsky and Michael Sklyar ran a string of Bay Area pawn shops before deciding to get into the lucrative field of high-interest car- title loans. They said their firm, BSL Financial Services in Redwood City, now has about $2 million in active loans. Typically, the car title loans are made without credit checks.

In California, lenders say, the average car-title loan is for $4,000.

13
Jul

Car Title Loan Collections

Car Title Loan Collections

A new trend in car title loan and payday loan collections to track down debtors? Using social media such as FaceBook, Pinterest, Twitter, Instagram, etc. Payday loan and car title loan lenders are monitoring borrower’s social media accounts for clues as to a borrower’s ability to pay and where borrower’s are employed.

California Title Loan Business Startup

Start a Title Loan Biz

Text messaging, email, “friending” are all becoming popular with car title loan and payday loan collectors today.

Consumers just don’t have a clue! They’re revealing all kinds of private information enabling car title loan and payday loan collectors to get their money. Even the IRS is at it according to media reports.

Whether laws are being broken to collect on these outstanding debts is open to debate. Federal Trade Commission regulations don’t explicitly refer to social media. The FTC did address how text messaging can and can’t be used to lawfully collect debts. Regardless, it’s unlawful for a bad debt collector to harass a debtor or violate a debtor’s privacy. This often happens when debt collectors reach out to the relatives and friends of a debtor.

Horror stories abound of car title loan lenders sending text messages and making phone calls during which the debt collectors failed to disclose that they were car title loan debt collectors, threatening to sue and garnish wages from the debtors they were contacting, and revealing individuals’ debts to friends, families, and coworkers.

If you’re a payday loan or car title loan lender in need of new ideas for collecting bad debt owed to you and you’re tried all the typical skip tracing methods, read our Title Loan Collections Chapter in our “How to Start a Car Title Loan Business Bible.”

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Car Title Loan Software

Car Title Loan Software for Your Business

Are you in the car title loan business? Or, do you want to start a title loan business but have no clue what loan management software is available? Do you know there are “off-the-shelf” software solutions for running a car title loan business?

We opened our first car title and payday loan store in California in 1997. We’ve “played” with all the loan management software solutions in the industry. We even screwed up and built our own; long since scrapped.

To start a car title loan business you need some straight talk about car title loan management software from a resource not having an agenda. Consider investing in our “Car Title Loan Training Manual” (300+ pages).

Our 300+ page title loan industry manual includes a lengthy chapter devoted to auto pawn and car title loan software. Not only do we thoroughly discuss the features to look for, but additionally, we include a complete list of the top title loan software solutions available in the marketplace today. This software chapter includes a list of the major players with phone numbers, web site addresses, and investmant requirements. We also include links to each auto title loan software company allowing you access to their free software demos.

Our team has more than 20 years experience with car title loans, payday loans and check cashing. Order our Auto Title Loan Training Manual today, read it, then pickup the phone and call us for free counsel.

We offer 2 methods to invest in our “How to Start a Car Title Loan Business:”

  • Immediate download in Adobe Acrobat: $277.95
  • We’ll print and ship it to you: $397.95


Available immediately in Adobe Acrobat or invest in the printed and shipped version. Need more info? Have a question?

Help@AutomobilePawn.com

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