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ruttie

auto title loan verbiage

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can anyone give me the actual verbiage in a auto title loan In AZ.? they are allowed to charge up to 10% monthly x12=120% annually, for loans of 5000. or more. On loans lower than this, they are allowed to charge even more, up to 204% annually . I am wondering if they actually disclose on the loan contract, the monthly interest rate charged or do they have to disclose both the monthly and the annual rate charged? They are making multimillionaires of the loan sharks, or just the average Joe, whom can afford to lend this money with a security interest in a vehicle, and still legally get away with these practices.

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they are allowed to charge up to 10% monthly.

It sounds like you just did quote the verbiage. Where did you get that figure from? Arizona state legislature says the maximum allowable interest rate is 10% per annum. But then it goes on to say "unless a different rate is agreed upon in writing" Well then what is the point of having a usury law if you have that little disclaimer saying any amount is ok?

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the az legislature 44-291 states that a secondary auto title loan that they can charge actually up to 17% monthly , x 12 months to give an annual % of up to 204% I have a private party lender, loaning me the money at a lower rate, but we need to draw up a auto title loan agreed contract, do we need to disclose the annual rate or just the monthly rate?

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I think it's perhaps the most fundamental law of lending: People extend credit to a borrower today with the expectation that those will be paid back in time, with interest, in the future. But in reality it is not the case but exactly opposite.

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If you have a clear title to your car, you can apply for an auto title loan with no hassle and keep your car. Your credit is checked, but because you have collateral in the value of the car, it is not a deciding in factor in your approval.

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