Title loans can be easily obtained in Kentucky and qualified applicants can get cash within one business day. Auto title loans are legal in Kentucky and you can see the most recent updates on the State Administrative Regulations Page. Kentucky is said to have the nation’s worst poverty rate. Many people who live in Kentucky are either at or below the poverty line. Title loans may seem like a quick fix to all your problems, but borrowers often end up paying more than they expected. Instead of using a vehicle title as collateral for a loan, in Kentucky you may use the title to a boat, home, or land.
These are short term loans but borrowers can face a long-term payback period. These loans are risky and may be very expensive. If you are considering a title loan make sure to read all the terms and conditions carefully before applying. It may take months or years to pay back the loan if you fall into hard times. In Kentucky, title loans are also referred to as title pledge loans.
In order to get an auto title loan, you must give up your car title as collateral. No extra fees are allowed to be charged on top of the interest. Title loans are rarely undertaken in Kentucky due to the interest rates. These loans have a very high chance of risk. Of the people who have taken title loans in Kentucky, about 20% have sold their car or their vehicle was repossessed. Because the nature of loans require a certain amount of desperation on the part of the borrower, the average borrower tends to be very high risk.
All the lenders and borrowers in Kentucky should be licensed. $15000 is the maximum amount allowable for title loans. Interest rates differ for title loans depending on the amount. Loans which are greater than $3,000 have an APR of 2% per month. Loans which are less than $3,000 have an APR of 3% per month. If you miss a payment, the lender has the right to repossess your vehicle. The lender must have the vehicle at least 20 days before selling it.
The rules and regulations for car title loans must be carefully analyzed before taking an online title loan. The lenders and the buyers must show their license while originating the loan. You must ensure that the license is valid and is not outdated or fake. The condition of the vehicle and other related documents will also be checked before the title loan is granted.
Much like all auto pawn lenders in the Southeast it’s important to find a company that’s reputable and has a good reputation. If a company that offers online title loans go against the rules and regulations of the state the borrowers have the right to inform the authorities. Generally, the courts rule in favor of the borrowers. You must raise your voice and let them know about payment or collection issues. In order to inform the authorities, you can contact the Department of Financial Institutions in Kentucky. You can also lodge a complaint at the Attorney General’s Consumer Protection Division in Kentucky. Make sure you make all the payments on time as there is a high chance of losing your vehicle.