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Title Pledge Loans
by: North Mississippi Rural Legal Services

Title Pledge Loans

  1. What is a Title Pledge Loan?
  2. What happens if I am unable to redeem the property within the 30 days?

What is a Title Pledge Loan?

A title pledge loan is an arrangement that allows you to borrow money for 30 days by pledging certain property, your car, for example.   You keep the car, but your lender keeps the Certificate of Title.  Your property may be worth considerably more than you borrow. If you are unable to repay the money, the lender has the right to take possession and sell your property.

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What happens if I am unable to redeem the property within the 30 days?

You forfeit all rights, title and interest in the vehicle and the lender acquire an absolute right to the property although the property maybe worth a great deal more than the amount borrowed.  However, you have 3 business days from the date the title pledge lender takes possession of your property to get it back. To redeem you must pay the principal balance, delinquent services charges, and the cost of repossession.

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Last Reviewed On: 12/08/02
 
 
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