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Is there any prepayment penalty for title loan?
#1
Other loans do require them.
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#2
Most loans do not have pre-payment penalties anymore. I am not aware of any loan type that still has them.
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#3
If you didn't pay, wouldn't the debt collectors come and take the item back? For example, if you had bought a car on a Title loan, wouldn't they come and take the car if it wasn't being paid for?
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#4
(01-13-2018, 07:09 AM)Nymaatra Wrote: If you didn't pay, wouldn't the debt collectors come and take the item back? For example, if you had bought a car on a Title loan, wouldn't they come and take the car if it wasn't being paid for?

I think you misread the title Smile They're talking about penalties for paying back a loan early. E.g. if you get a bonus from work and want to use it to finish off your payments. Sometimes banks etc. will charge you fees to account for the interest payments they have lost via you finishing the contract early. It really depends on what you agreed to in the initial contract!
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#5
Pre-payment penalties on title loans are regulated by the state the loan is in. There are no pre-payment penalties where I live.
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#6
I've never understood the point in prepayment penalties. Charging you money because you want to pay off your loan earlier than it is due - outrageously ridiculous in my opinion! They used to have these penalties here in the past, but they're mostly outdated now. Still though one has to read all the terms and conditions of the contract very thorougly, because you never know what sneaky ways a lender has thought of to make more money.
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#7
There has been before, well that was what I heard. But right now, that does not exist anymore. These lenders have been regulated, so what they did is you will pay the same amount, having same interest even if you pay earlier.
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#8
I don't know much about title loans. I would gather there are no pre payment penalities, but it may depend in part on the lender. As the other posters have indicated, it seems that these pre payment penalities were something that existed in the past, and no longer are the case.
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#9
I don't think that there is pre-payment for title loans since you're having a title as you collateral. You can have your desire loan for your title loan as long as you follow the procedure. I think there some payment you need to payment before they release your title loan like processing fee, advance for one month plus interest. But bottom line is that is not a prepayment for your title loan. Well, I know that there is a lot of loan and they don't charge you for pre-payment, they will just charge you for processing fee and advance I think.
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#10
From where I live, for title loans, the title is already your collateral. Most companies do not charge pre-payment anymore. But there are some, it really depends on the company you're applying a loan. But I am curious to know that in the U.S., it depends on which state you live in and there are rules regarding this. This is not the case in my country and I don't know if it's a good thing or bad. But when I think about the general idea of loans here, it's a little bit difficult to get approved compared to other countries, I think.
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