Before getting a title loan in Virginia, make sure you know the following:
1. The maximum interest rate is between 17%-22% a month (204% – 264% APR).
– That is very high. You can negotiate a lower rate, many lenders charge less than the maximum.
2. The lender is not permitted to charge any Loan origination fees.
– They can charge a $10.00 lien fee for VA; no other fees are allowed. If there are other fees, question them.
3. You have 1 day to cancel the loan by returning the funds the same or next day.
– If you find a better source of funds, take advantage of this and cancel the loan.
4. The lender can repossess your vehicle if you default on the loan.
– Find out what the lender considers a default; and how to cure a default before signing.
5. A late fee of 5% of your monthly payment can be charged if you are 7 days or more late.
– Make sure you are not charged a late fee if you make your payment less than 7 days late.
6. A lender cannot legally come after you for money if they repossess your vehicle.
– Be advised that they can if you intentionally conceal or damage the vehicle.
For more information feel free to visit us at www.ftlenders.com.
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