Defaulting on your car pawn loan Edmonton Alberta is expensive and can have dire consequences Aside from the penalties incurred due to late payments, you could also lose your car to repossession. One thing that many borrowers worry about is whether defaulting on a title loan could lead to jail time. We asked the experts and here’s the general consensus:
Could I Be Jailed for Defaulting on my Auto Title Loan?
No, you cannot be jailed for missing payments or defaulting on a loan. Reports of people having outstanding warrants of arrest because they’re behind on loan payments are simply not true. According to the law, “debtor’s prison” is against the constitution. Lending companies and debt collection agencies are also restricted on how they can collect the debt owed. They cannot harass or threaten you and you can file charges if they do.
However, lenders are within their rights to repossess your car if you default on your refinance car loan. It’s a standard clause in title loans as a means for the lender to recoup the investment they made on you. The repossessed vehicle will then be sold off to repay the loan. If the sale is not enough to cover the loan, the borrower will shoulder the remaining balance. So not only will you be without a car, but you’ll still be paying monthly.
Lowest Interest Rates You Can Find
Apply at Canadian Equity Loans and enjoy fast loans at low-interest rates. You can borrow as much as $50,000 from this trusted lender. They have the lowest interest rates around and offer low monthly payments. They also accept early payouts without penalties. You can even get the cash you need in less than 24 hours. Sign up at their website or call their toll-free number at 1-844-586-6311.
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