I took a title loan for $700.00 on a 19yr old car.I due to my finances I was unable to pay the loan off.Subsequently, a month after I got the loan the transmission went out in the car.The car reg was also due to be renewed.
I was not able to do so because the car could not pass the Georgia inspection.I advised the loan company to come get the car but the Rep. "stated they weren't in the car sales business" and wanted payment only.
To make matters worse the apartment complex I live in put a sticker on the car that gave me ONLY 72 hours to register or it would be towed.I couldn't register it so I had it junked.That was 4 month ago...
Now, the loan company wants the car and they are threatening to issues a warrant if it not returned the car.I told them every time I spoke with them that the car was inoperable and they could come and repo it..Now I'm in danger of arrest for a nearly 20 yr.old car that I DON'T HAVE.I'm about a week from filing bankruptcy.Will that solve this issue or will I be arrested and stuck with paying this loan?
I've never been arrested in my life!
2 Answers from Attorneys
The threat to arrest you may be illegal in itself. Speed up your bankruptcy and see your lawyer Monday (this is not a pro se project). I assume that 4 months ago you gave the title pawn company written notice that the car was being towed to a junkyard and that you didn't make the mistake of doing notice verbally.
Let me add that while legal, Title Pawn companies are as evil as the worst Mafia loan shark. Georgia should ban their business but until they do, all Georgians should have the good sense to never go to a Title Pawn or Payday Lender.
Again, see your bankruptcy lawyer Monday and discuss whether you also have a claim against the title pawn company. Tape their calls and bring your evidence to your lawyer.
I agree with everythng Attorney Ashman said - especially about car pawn title companies being ee-ville. They are right up with their with payday lenders. Both are vultures who prey on the most financially vulnerable in our society. If government truly wanted to help people it would outlaw or strictly regulate these entities.
This title loan place wasn't too swift for making a loan on a 19-year old car! Usually, they are made on newer cars worth a lot more than is loaned out. That may explain the initial reluctance to repo here. If the car was worth money they would have wasted no time repo'ing it. In your case though, the car wasn't worth much and was inoperable so they would have preferred their funds.
Since you are going to file bankruptcy, just include this loan. While having evidence against the car title company would be nice - few people have recorded conversations (although the car title place might have a recording) or letters. It is a crime to dispose of assets that are subject to a security interest but it is doubtful they would take it that far here given the facts. You did give them notice.
However, please discuss this with your bankruptcy attorney.