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I tok out a title loan on my car and had an accident. Problem is I only had Liability Insurance. I still owe them $390 and they want it all, if not they said they will have a warrent out for me cause they still have the title. I live in Ga. They wont take payments, they want it all. Someone told me to send a certified letter with the payment I can make every to weeks (which is $50) and make the first payment with the letter. Can someone tell me plz if this is correct? I dont know what to do. The debt is mine and Im willing to pay it, but dont have $390 to do it in one shot, hell I dont even have a car not to take the payment to them. Any insite would help me a ton.

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"They wont take payments, they want it all."

"Someone told me to send a certified letter with the payment..."

Was this "someone" with the creditor? If not, i wouldn't recommend it. It they were, get it in writing from them, first.

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The letter said they would ahve me arrested because the security (meaning the Van I had) is total loss. I was just scared, cause I know its my debt and Im willing to show good faith and make at the least some payments. I want to show some effort in the fact that Im at the least willing to make some payments.

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You cannot be arrested for owing people money, regardless of what happened to the security. The most they can do is sue you for the balance o the contract, and possibly other damages as laid out in your contract.

There is no debtor's prison. They lied. In FL it is a crime for them to tell you that. I would check GA law to see if it is there as well.

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Some car rental agencies will report a car as stolen if it is not returned by a certain amount of days after the contracted return date, that may be what this company is implying...you would have to check the wording of your contract. But I don't see how they could have you arrested if the van was wrecked.

Most of all I would seek the help of a consumer protection attorney. Even if you have no or little money, your local courthouse should be able to help you find one. During my dark credit days in '02, I had a bad experience with a title loan company so I sought an atty for help, and it turns out not only was the contract poorly worded and the interest usurious, but the company wasn't even properly licensed under California regulations. Atty filed suit against them and they settled. Quickly.

Just out of curiosity, didn't they have you prove your insurance coverage at the time they made the loan? It sounds strange that a legit company would be knocking themselves out over $390.00 on a totalled van.

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I only had liability and it was no rental car. its was my personal van and I was hurting for money at the time, so I took a loan on it. I was just scared that they would gat a warrent out on me because I no longer have the van and the wrecker company has it. I dont have the 150 they want to get it out and with a wife and 4 kids I cant aford much at all. So, you can see my postion in this. But, i just sent them $50 and told them I will make good on the $390 I owe them. I just cant send them anything more. Bad thing is I dont even have a car to get back and forth now to work and have to rely on a co-worker to help me get back and forth till I can get on my feet. Thank you all for the insite I have gotten so far

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!>!>!>!> What follows should IN NO WAY be construed as legal advice <!<!<!<!

Daddy321, I understand it was not a rental company, I was just trying to illustrate a point. This title loan gave you a loan knowing that you only had liability insurance...do you still have the contract? Does it state what their rights are in the event of the loss of collateral? And did they approve the payment plan, or did you just send in the $50 on your own?

Based solely on the little info you've provided, the company sounds a tad shady to me, and MAY just be intimidating you to get their money. You owe a business less than $400, which they are probably aware that you don't have. I really don't know if they can have you arrested, but they could sue you in court. You can have the case remove to small claims (or the equivalent), and a judge would more than likely make them agree to a payment plan. Point is unless they can sue you for more than $390, it's not really worth their time and/or expense to go after it. Of course, it's not my money, so my view may be different.

There's got to be more to this saga...maybe something else in the contract, maybe the company isn't completely legal, or maybe they'll eventually go after the full value of the van (at the time they made the loan). If this whole thing has you shaken, I'll go back to what I said earlier...seek the advice of a consumer protection atty PRONTO...you should be able get help at little or no cost if you are strapped. Even for something so small, things can get out of hand if you're not prepared to deal with them.

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Fozzle- please stop giving advice if you don't understand what is going on.

These title loan companies are all over the place. They are similar to check advance companies or pawn shops. You bring in the title, and they hold it in exchange for loaning you money. To get it back, you pay back the money and a fee, which usually amounts to triple digit interest rates. I despise these companies, they are basically legal loan sharks.

Car rental companies call the cops and report rental cars stolen, because they are the lawful owners of the car, ie- it is titled in their name. Even then, you really can't be criminally charged for overkeeping a rental car, it is a civil matter, they just report it stolen as just a tool for them to get the car back.

In this case, all they can do is sue you. You cannot go to jail. In fact, like I said, it may be illegal for them to say that.

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Eaaasy, Divemedic, we're all on the same side here. I think I mentioned in my last post that I know it's not a rental company. I've also had experience with title loan companies and how some of them work. I agree 100% that they legal loan sharks, and in some cases illegal...so sure, I hava an idea of what's going on.

The wording I used was "Based solely on the little info you've provided, the company sounds a tad shady to me, and MAY just be intimidating you to get their money." My advice was "If this whole thing has you shaken, I'll go back to what I said earlier...seek the advice of a consumer protection atty PRONTO...you should be able get help at little or no cost if you are strapped." That sounds pretty reasonable to me.

True, I think it's strange that the company would make the loan knowing our man only had liability insurance, they were not covered in the event of loss...that very odd for a business. I have no doubt that the company is bullying daddy321 for the purpose of getting their cash back, and an attorney can tell him if they've violated any laws or not and what his options are. Most of the rest of us can only speculate unless we're familiar with the laws of his state (I'm not, I'm across the country). I don't see any harm in recommending free or low cost assistance; daddy321 seems shaken, upset, and yes, scared. I've been in that situation before, and this board has been very helpful. I truly respect your opinion and your knowledge, but I also respect daddy321's right to decide if what I had to offer, in whole or in part, can be of any assistance.

Ok, that when on longer than I thought. Check you guys later.

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