Car Title Loans | Federal Trade Commission


Albert needed some extra money
to pay his bills this month. He saw an ad on TV
that said you can get a loan if you own a car. So he went to a local shop that
advertised car title loans. Albert filled out
an application. Then he showed the lender his
car and the title to his car. The lender gave Albert
one thousand dollars, but he kept the title
to Albert’s car. In 30 days, Albert had to
repay the $1,000 he borrowed, plus a fee of $250 to
get his car title back. But a month later, Albert
didn’t have the money he owed, so the
lender gave Albert more time to repay the loan. But Albert would have to
pay another fee of $250. Another month past. Albert now owed $1,500, but he
still couldn’t repay the loan. This time the lender
didn’t give Albert more time to pay back the loan. Instead, the lender
sold Albert’s car and kept the money. Albert lost his car
and his transportation. He knew it would
take a long time to save enough money
to buy another car. And he also knew he would never
get a car title loan again.

4 comments on “Car Title Loans | Federal Trade Commission”

  1. Bobbi Ysmael says:

    Nice

  2. E. Lin says:

    Those 'loans' are to set up to make you lose.

  3. Dr HM Rahman says:

    nice

  4. PRESTO MAN says:

    I'm sorry, but this isn't what happens everytime someone gets an auto title loan.

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