Not all companies are the same.
Some view their customers as an asset…others as commodity. Most follow strict ethical practices…the rest are more flexible in how they pursue their profits. Car title loan lenders are no different. In this post I will explain in some detail the title loan program while also provide some guidance on how to select a credible title loan lender and help you feel comfortable in your loan transaction.
What is a Car Title Loan?
A car title loan program is very similar in structure to a loan a car dealer or bank may offer to purchase a vehicle. The main difference between a new or used car loan and a title loan is that the former is designed to help finance the purchase, while the title loan program is designed to allow the owner of the car or light truck to draw the available equity. It also offers quick financing that is available for consumers with any credit history. In order to qualify for a car title loan, consumers are usually required to submit an application and some accompanying documentation to verify the address listed on the application, as well as a stream of income available to apply to monthly loan payments. In 45 minutes or less, we at Royal Loan Co., can offer financing up to $50,000. The vehicle remains with you to use and enjoy and early pre-payment without penalty is available should you decide to payoff your loan. Loan terms are offered on 2, 3, or 4 year fully amortized notes. This means that as a consumer you are free to choose from three different length of contract with each one structured to help pay down the principal balance (amount you borrow) as you make regular scheduled payments. An interest only loan, for example, will include a balloon payment at the end of the term.
As with any loan application, sensitive personal and financial information is detailed. This is why we at Royal Loan co. feel that you should not only feel absolutely comfortable as a consumer when applying, but also confident that you are secure in your transaction. Our loan officers encourage and recommend to consumers the following checklist of questions when selecting a title loan lender:
1. Ask the lender or their representative and/or loan office the company’s license information. For example: “Are you licensed in California?” or “What is your license number?”
If the lender refuses to give you license information, they are in violation of some state statutes. Anytime a lender is asked about their license information, they must disclose it. Furthermore, when reviewing the website, a respectable and reputable lender will always post their license number and the type of license they hold. Our website discloses the business license information at the bottom. You can see it HERE. Most California title loan lenders are licensed through the Department of Corporation. More information is available by visiting their website.
2. Ask the representative and/or loan officer the address of the main office and any local branches.
If this information is not provided, it should raise some red flags. If you are given an address, make sure that address is valid by going to a service such as Google Maps and verifying the listing. For example, our company is registered with Google Maps Places service and our address as well as additional information can be reviewed HERE.
3. Ask questions.
The more questions you ask the better you will understand the loan process and terms. Ask questions about the loan application, the requirements, and the terms. At Royal Loan Co., we make it a priority to train our staff to assist consumers in understanding our loan programs and to have all their questions addressed. If you are calling one of our competitors and they are not giving you straight answers, it may also be a red flag. Any loan transaction is an important financial decision; therefore, we highly recommend that you have a good understanding of all of the requirements and conditions.
4. Is the company you are working with rated with the Better Business Bureau?
The Better Business Bureau (BBB) offers grades for companies based on the quality of their service and number of complaints issued against them. For example, you are welcome to review our BBB page HERE - we are an accredited member with an A+ rating. Is the lender you are considering registered with BBB? Are they accredited? What is their rating and complaint history?
5. Social Media
A reputable lender will also set a goal of reaching out to as many consumers as possible with helpful information in addition to advertising their services. This blog is one example of social media outreach. We strive to help you understand our programs, keep you up to date with important news, and also offer helpful hints. We also post regularly to our Facebook Page and our Twitter page. Click on the links and follow us…we are always welcoming your comments and questions.
In conclusion, when searching for a car title loan lender you should look to engage the loan companies and make sure they are working with you in a honest and direct manner. Have all your questions addressed, and don’t hesitate to do some background research on the lender and the services they offer. Take note on some of the red flags discussed above, use them to create a checklist before you start making phone calls, and also keep it as a guide when on the phone interviewing the lender. Take some time to review additional examples below.
This is a screen shot of a car title loan lender that was using our blog and Twitter posts to re-direct consumers to their website.
I personally visited the website and could not locate an address or license information anywhere. Hoping that this was overlooked, I clicked on the LiveChat available on the website. Here is the transcript:
Kelly Says: Just type ‘HI’ or ‘Hello’ in the space below to let me know you are there.
You: what is the name of your company?
Kelly Says: Hi, thanks for chatting with me… to get started on finding the perfect loan for you CLICK HERE
Kelly Says: Don’t worry if your credit is less than perfect. Our intent is to put aside past problems and credit scores and focus on current circumstances in order to get the applicant qualified.
Kelly Says: Just fill out our simple online auto application and a representative will contact you fast!
Kelly Says: Would you like to take advantage of this amazing offer?
You: what is the name of your company?
Kelly Says: This amazing offer is only available through this chat and for a limited time. CLICK HERE to take advantage of this deal.
You: i would like to know the name of your company please
Kelly Says: Our program is specifically designed to meet the needs of those individuals who have experienced past credit problems that cause low credit scores.
You: what is the name of your company kelly?
You: where are you licensed?
You: and what is the license number?
Kelly Says: Keep in mind that this is a risk free Auto Loan application! You have nothing to lose!
You: please answer the questions above. thank you.
Kelly Says: I’m sorry I have only limited information. Please Click Here for customer service.
You: you dont know the name of your company?
Kelly Says: What are you waiting for?? Take of advantage of this amazing deal now, before it’s too late!
As you can see, no attempts are being made by Kelly (if that is even her real name) to disclose the company name or license information. Instead, Kelly is trying her hardest to distract you from what you want to know by pushing her “amazing deal” repeatedly. We don’t like to see this kind of practices because they may put a consumer’s privacy and sensitive financial information in jeopardy. When you submit an inquiry or application to Royal Loan Co., you will have a dedicated loan officer in contact with you throughout the loan process. It will be the same individual who took you call, and we will serve you at our location – not a location rented out with a customer service rep who has no connection to the lender.
We may not be the lender you select to obtain a title loan for your car or light truck, but we are committed to customer service and our goal is to provide personal attention to each consumer. Without you, our business would not have the opportunity to grow. If you do feel like one of our competitors offers you a better loan package, please don’t hesitate to choose their services. However, we hope that this guide can help you make an informed decision and make you feel secure in your transaction. Should you have any additional questions, please feel free to submit them via email to firstname.lastname@example.org. Please put “How to Select the Best Car Title Loan Companies” in the subject line and the message will be directed to me. Thank you for taking the time to read this blog. I look forward to working with you!
Royal Loan Co.