You wont be sent to debtors prison for defaulting or missing title loan payments.

Can I Go To Jail If I Don’t Pay Back A Car Title Loan


A common question we hear from people is what happens if they don’t pay back a title loan. This comes up often from borrowers that are already behind on their payments. We also hear from people that are simply curious and trying to decide if online title loans are too risky of a lending option. The bottom line, if you don’t pay back your car title loan, you won’t go to jail. However, there are still some pretty serious repercussions that you’ll face and it’s always best to avoid a situation where it’s even remotely possible to fall behind on payments.


So I Won’t Go To Jail But What Happens If I Default On A Title Loan

The most immediate consequence is that your vehicle could be repossessed. If you can’t make your payments, the lender has the right to take back your car. This can happen even if you only miss one payment.

Aside from losing your vehicle, you’ll also end up owing a lot of money. The balance of your loan will continue to grow as interest accrues. And, if your car is repossessed, you’ll be responsible for paying off the entire loan plus any fees associated with the repossession.


Here’s Why You Won’t Go To Jail If You Default On A Car Title Loan

In short, it’s illegal to jail someone for not being able to repay a debt. This is called a debtors’ prison and it was abolished in the United States over 200 years ago.

There are a few exceptions to this rule. For example, if you write a bad check with the intention of defrauding someone, you could face some type of legal issue for writing bad checks. Other examples include things like tax evasion or failure to pay child support. But, in general, you can’t go to jail simply for owing money.

So, if you’re struggling to make your car title loan payments, know that you won’t go to jail if you default on the loan. However, you could still face some serious repercussions, including repossession of your vehicle. If you’re having trouble making payments, reach out to your lender and try to work out a payment plan. It’s always better to avoid defaulting on a loan if at all possible.


Don't fear going to jail if you default on a title loan.

My Lender Says I Will Go To Jail For Not Paying My Title Loan – What Can I Do

If your lender is threatening you with jail time, this is a clear sign that they are not a reputable lender. You should never work with a lender that threatens you with legal action if you can’t make your payments.

If you’re being threatened by your lender, our advice is to reach out to an attorney. An attorney can help you understand your rights and options. They may also be able to help you negotiate with your lender.

In some cases, it may be possible to file a complaint against your lender with the state’s Attorney General’s office or the Consumer Financial Protection Bureau (CFPB). If you choose to go this route, make sure to keep all documentation related to your loan and contact information for your lender.

As a consumer, you have significant protections in place that limit credit harassment and actions like this by lenders. It all starts with the Fair Debt Collection Practices Act and there are additional legal frameworks in place for each state that protect you if there’s a title loan default. For instance a borrow in Richmond, VA is not only protected by their state laws, but they also have the backing and protection of city rules and regulations that regulate bill collectors and repossession companies. Bottom line, don’t listen to a lender or 3rd party bill collector if they say you’re going to jail for not making the monthly title loan payments. Instead document the situation and consult with an attorney or your state to get further assistance.


Avoid Losing your Vehicle With A Title Loan Default

By now, we should all know that jail is not an option for someone who didn’t make their title loan payments. But what can you do to avoid losing a vehicle after defaulting? Vehicle repossession is a real risk at this point and you should assume a creditor is making arraignments to take back the loan collateral.

If you want to avoid losing your vehicle you should take action as soon as possible. The longer you wait, the more difficult it becomes to negotiate with your lender and make other arrangements.

Your best bet is to reach out to your lender directly and try to work something out. In some cases, they may be willing to work with you on a new payment plan or extend the length of your loan. This will give you some extra time to get back on track. Also, take some time and familiarize yourself with the repossession laws in your state so you know what to expect in a worst case scenario.

If you’re not able to come to an agreement with your lender, you may want to consider selling your vehicle yourself. This will allow you to pay off the loan and avoid having your car repossessed. Keep in mind that if you do sell your car, you’ll need to find another way to get around.


To Summarize: You Won’t Go To Jail If You Fail To Pay Back A Title Loan

No, you cannot go to jail for failing to pay back a car title loan. However, there are still some serious repercussions that you’ll face if you default on your loan. These can include repossession of your vehicle and damage to your credit score.

If you’re having trouble making payments, reach out to your lender and try to work out a payment plan. It’s always better to avoid defaulting on a loan if at all possible. And if your lender is threatening you with legal action, be sure to reach out to an attorney. You have significant protections in place as a consumer and should never have to deal with harassment from a lender.

Contact the customer service team at Premier Title Loans to find out the options available if you find yourself in a situation where you may not be able to pay back a title loan. We’ll work with you to get back on track with a possible refinance!


It's not ok to miss title loan payments but you won't be sent arrested.

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