How to Get a Title Back From a Title Loan Company
Review the terms of the loan. When you finally pay off the balance of your title loan, the loan company will remove the lien it placed on your vehicle, which represents the loan company's legal right to take possession of your vehicle until you have paid back your debt. It will then return the title to you. This process should be spelled out in your loan agreement. Look over this document to understand exactly what you need to do in order to restore full title to your vehicle.
- Lenders typically charge a monthly fee that can be quite high, which you will have to pay in addition to the original amount borrowed.
- There will also be an associated APR with the loan, which represents the amount of interest you would have to pay over the course of a year. The lender must present you with the terms of the loan in writing before you sign it.
- When you are applying for a car title loan, federal law requires the lender to tell you both the APR (not just the monthly rate) and the total cost of the loan in dollars.
- Your APR will be based on the amount borrowed, the monthly interest rate, the fees you must pay, and the duration of the loan.
Pay off your car title loan as soon as possible. When you sign a loan agreement with a title loan company, you are basically saying that the loan company can take your car if you do not pay back the amount borrowed under the terms of the agreement. Therefore, before you can regain the vehicle title you surrendered when you received the loan, you must pay off the loan in full, including the original loan amount, monthly interest, and any additional fees.
- Try to pay off this amount as soon as possible to avoid further fees or charges.
- If you are having trouble coming up with the money, and you really need your vehicle, try borrowing from a source that charges less interest/fees than what the title loan company is charging you.
Obtain proof that the loan is settled. Most title loan companies will supply documentation that confirms the loan is settled in full, complete with details regarding the payoff date, history of payments remitted, and other relevant data. Keep this document in a safe place in case there are any problems with restoring your vehicle's title.
Receive your vehicle's title. After you have paid off the loan in full, the loan company will sign your vehicle's title to signify the release of its lien on the vehicle and mail you the vehicle title you surrendered at the time you executed the loan. Depending on your jurisdiction, the loan company may have to return this title in a specified amount of time.
- For example, in Texas, a title loan company must return the title to you and clear its lien on your vehicle's title within 10 business days of receiving payment in full.
Submit your vehicle's title to the appropriate government agency to clear the lien. Generally, you will be working with your state's Department of Motor Vehicles ("DMV") to clear the lien on your vehicle's title. While the process varies by state, generally you will have to complete a form to restore title and mail that form, along with your vehicle's title, to the DMV along with a processing fee. The DMV will then remove the lien from the title and issue you a new title, restored fully in your name.
- For example, in California, you must submit your title within 30 days of receiving it from the title loan company, pay a transfer fee of $15, and then the DMV will issue you a new title identifying you as the sole owner of the vehicle.
- In Texas, you must visit your local county's tax office, pay a title fee of between $28–$33, and then submit your vehicle's title, proof of release of lien, and a completed title application to restore your vehicle's title.
Monitor the progress of your title. Many agencies will provide verification that the paperwork from the title loan company has been received and is in process, and can give you an estimated amount of time for processing. This will help you get some idea of when to expect your restored title.
- You can use this chart to find the contact information for the DMV for your state.
Review your restored title. Once you receive your restored title, go over it to make sure the information is accurate and complete. If there are any errors or omissions, contact the issuing agency immediately and arrange to have the information updated. This will help prevent any possible difficulties with the title in the future, such as when securing tags, paying taxes on the vehicle, or selling the automobile to a new owner.