Who competes with automatic title lenders?

Recently, car ownership loans have become very popular as more and more consumers turn to lenders that offer fast, convenient and simple loans. The economy requires consumers to “give a helping hand” to supplement their salary, pay overdue bills or deal with financial emergencies not covered by certain savings accounts, and car tile loans have become more common than ever.

However, if these types of loans were not recently used in the 1990s to become widely used by people who want to return to the “financial driver seat,” people have turned to narrowing the gap with finance. Freedom and budget confusion. Lenders who used to make money from borrowers are now competing for property lenders. These lenders offer consumers more choices, but there is no more room to breathe in the approval process.

Bank of America, such as Wells Fargo & Co. and US Bancorp, still offer regular loans as usual, but they also join short-term, high-risk lending games to compensate for lost revenues due to debit cards and overdrafts. cost. Banks, auto-ownership loans and payday lenders are undergoing a rigorous review of the use of these high-interest short-term loans, but may not be subject to state laws that impose interest rate caps. The Federal Deposit Insurance Corp. and the Consumer Financial Protection Bureau have taken steps to investigate these bank loans, which do not use the term “payday” but use “prepaid” Names such as "" and "direct deposit advance payment".

While car loaners are based on the value and equity of your car, short-term bank loans are based solely on the borrower's income and work experience. Car ownership lenders use the rights in the consumer's car or truck to determine the eligibility and amount of the loan, which means that when a person applies for these types of loans, no credit check is required. Most car ownership lenders will not report to credit bureaus if the consumer defaults on payment or does not repay the loan at all. On the other hand, the bank can choose to let the credit institution know that the consumer has defaulted on the loan and can choose to close the borrower's account without repaying the loan. This alone can make car ownership loans attractive to people with poor reputation or little or no credit.

On the other hand, borrowers of auto-ownership loans will not be able to obtain credit value when repaying loans, while payday loans from traditional lenders will enable consumers to “create credit records so they can graduate from more mainstream credit products, Whether working with us or working with other well-known institutions," said Jeffrey Lee, executive vice president of Regions Bank.

The biggest attraction of car ownership loans may be that borrowers can actually draw large amounts of money from the rights of their vehicles. According to the state's loan ceiling, the average loan amount on paydays is $250-$1,000, while auto-property loans can deposit $5,000 in the borrower's bank account, as this is based on the value of the consumer. Car or truck. Remember, if the lender does not repay the loan before the cash is returned, ask the owner to have the title of the vehicle or “pink note”? The lender can take back the vehicle.

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