May
24
Can a Title Pawn store report to your credit report that you voluntarialy turned in your vehicle?
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I was short of cash and decided to us my title for a pawn (2001 Pontiac Bonneville). I was given $800.00 and in formed that my interest payments would be 93.00 a month. I paid one month’s interest payment, however, the car started to act up. I turned the vehicle in to Title Pawn institution and to my astonishment they reported it to the credit bureau as a voluntary repossession. My point is they already only give you half of what the car is worth. Then they rob you 15 to 25% interest monthly. I did the civil thing an turned the car in. They may have put $200.00 additional dollars in it to get it running perfectly, however, They had a $1500 car. What gives? They also follow under the Georgia Pawn Shop Law in which reporting to the credit buearu is prohibited.
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4 Comments
May 25th, 2010 at 10:04 pm
You didn’t “pawn” the car. You got a title loan and then defaulted on that loan which results in a repo - voluntary or not makes no difference.
May 28th, 2010 at 2:21 am
You didn’t pawn the car, you pawned the title. Title pawns don’t work the same way as regular pawns. You effectively refinanced the car. The terms of the finance automatically renew on a month to month basis. When you finance a car at a bank, it is the same deal except you finance for a longer term and it doesn’t automatically renew. They keep the title and ownership of the car as security until you repay them. When you turned the car in instead of the money you agreed to turn in you defaulted on the loan. If the car wasn’t worth $800 for you to keep, why would it be worth that much to them? They may sell the car on their own or they may sell it at auction. If there is a balance left over after they sell the car, you will owe them money as well. Write it off as a very expensive lesson.
May 29th, 2010 at 1:45 am
Your trouble is that the title store wasn’t really interested in “buying” your car, especially as it was acting up. They are in the business of lending money and earning interest on it.
The activity they reported on your credit report is perfectly legal and valid, since your contract with them was to repay a loan. I’m assuming you haven’t repaid the loan.
And, as far as the interest being “robbery” I happen to agree with you, but since you signed the deal knowing what the costs would be, it isn’t something you can fight now.
Just write it off as an expensive lesson and look into whether or not paying off the loan now would remove the negative news from your credit report. Sometimes (rare but sometimes) a creditor will remove an entry in exchange for you paying off the loan.
In the future, stay away from these places.
June 1st, 2010 at 2:24 am
you expected a LOW interest rate from a pawn shop? didn’t you read what you were signing? - pawn shops always charge VERY high int rates
if you owned the car in the first place and then took a loan against if for 1/2 of what it was worth, why didn’t you try to sell it and pay off the loan? turning the car in was idiotic
why didn’t YOU put $200 into it and make it a good running car?? you got $800 for pawning it