Texas is widely considered a wild west of payday and auto-title lending. LoanStar wasn’t satisfied with just taking her car the company mailed her a letter demanding that she pay $891 to cover towing costs and rekeying fees, in addition to the unpaid balance of the loan. “Just imagine the conversation I had to have with my kids, explaining to them why mommy can’t get to work,” Garcia said. One morning, she woke to find that her car had been towed away in the middle of the night. Garcia said she tried to negotiate a payment plan with LoanStar, but the company sent her straight to collections. She couldn’t even come close to paying off the loan on the income from her minimum-wage job at Goodwill Industries in Austin. “Being a single mom and working a minimum-wage job, it’s really hard to come up with that kind of money,” Garcia said.Īs soon as she took out the loan, Garcia said she realized she had made a mistake. The full loan amount plus interest and fees-almost $1,900-was due in 30 days. After appraising her vehicle, LoanStar Title Loans offered to loan Garcia $1,500. A family member suggested that she borrow against her car, a reliable 2003 Chevy Cavalier worth $2,100. After a relationship fell apart, Garcia found herself in a financial hole, unable to pay her bills. Garcia’s experience is typical, advocates say. It’s the first time the state has collected consumer data from the payday loan and auto-title lending industries.ĭuring the first half of 2012, auto-title lenders seized vehicles on about one out of 10 of their loans-more than 17,000 vehicles in all. Refinancing the loan rather than paying the debt in full when due will require the payment of additional charges.Naivi Garcia doesn’t think of herself as a statistic, but she’s one of the many Texans-an average of 93 each day-who have their cars repossessed by auto-title lenders, according to reports from the state Office of Consumer Credit Commissioner. A cash advance or auto title loan should only be used to meet short-term cash needs. If you access and use this Site outside the United States you are responsible for complying with your local laws and regulations.Īn advance of money obtained through a cash advance or auto title loan is not intended to meet long-term financial needs. Any such references do not imply that such products will be made available outside the United States. This Site may contain products and services or references to products and services, which are not available outside of the United States. This Site may be accessed from countries other than the United States. Office of Consumer Credit Commissioner, 2601 North Lamar Boulevard, Austin, Texas 78705-4207, (800) 538-1579, Call the Consumer Credit Hotline or write for credit information or assistance with credit problems. This business is licensed and examined by the State of Texas-Office of Consumer Credit Commissioner. Unsure if you qualify for a title loan or if it is the right decision for you? Contact us today and we would be happy to answer any questions you may have! Star of Texas Financial Solutions is a licensed Texas Credit Access Business. Loans offered to Star of Texas Financial Solutions customers are funded by a separate entity referred to as the Third Party Lender. And, at the end of the term of your loan, you can choose to pay off or refinance the loan. They are: payoff, pay down your principal balance, or pay interest and fees only. No matter what the loan type is, you always have (3) options each time your payment is due. Star of Texas Financial Solutions offers installment title loan services for up to (6) months with bi-weekly or monthly payments. Just as with the other loan types at Star of Texas Financial Solutions, our customers enjoy more time to pay back their loan versus the traditional single payment title loan. Star of Texas Financial Solutions customers can choose to use their car as their credit with a Motor Vehicle Title Loan. Title Loans for Pflugerville, Round Rock, New Braunfels, Abilene & Waco, TX There are a variety of different payment options that Star of Texas Financial Solutions offers for title loans. Residents throughout New Braunfels, Pflugerville, and Round Rock, TX turn to Star of Texas Financial Solutions for trusted title loans. Title loans are short term loans and are beneficial if you are in need of fast cash. To receive a title loan, you will need to own a car free and clear. A title loan is a loan where borrowers can use their vehicle as collateral for the loan.
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