Missouri Title Loan Repossession Laws – What You Need to Know Before You Owe

Consumers who have bad credit and own their vehicle, may often consider a title loan when in a financial crunch. However, before placing your vehicle up as collateral for a loan, it’s important to consider the consequences if you fail to repay it. By Missouri law, failure to repay the loan entitles the lender to repossess the vehicle, but there are specific policies lenders must abide by during the repossession process.

According to the Division of Finance, which regulates Missouri title loan companies, the loan must be 10 days past due before any action can be taken. So a late payment that is only 5 days past due, will not result in repossession or the threat of repossession.

Once the loan is 10 days past due, the lender is required to send out the “Notice of Default and Right to Cure.” This notice states the payment amount due and the deadline to make the payment. It also gives a warning that failure to make payment by the deadline could result in the lender exercising their right to repossess the vehicle.

Missouri law requires that the deadline to make the payment be a minimum of 20 days. Allowing customers at least 20 days to cure the default, after the loan is 10 days past due, provides Missouri residents a minimum of 30 days to make payment. Compared to other states, this is a considerable length of time to remedy a default.

During the course of the loan, if the borrower is late making payment a second time, the lender is required to wait 10 days and then send out a “Second Notice of Default and Right to Cure.” This notice provides the same information as well as the same 20 day grace period as the first notice, but there is one additional warning. The warning states that if the borrower is late a third time, they will not receive another notice, nor will they be entitled to “cure the default.”

Failure to make payment after the grace period will result in repossession of the vehicle. Missouri regulations require lenders to send borrowers notification that they intend to sell the vehicle and then allow at least 10 days for the borrower to repay the loan in full and thereby redeem the vehicle. If the borrower fails to redeem the vehicle after 10 days, then the lender is entitled to sell the property.

Lenders are entitled to the profits from the sale of the vehicle in order to cover the unpaid balance of the loan and other financing expenses. Title loan companies can also use the proceeds from the sale to cover their repossession costs, or any other repairs or expenses associated with the vehicle.

However, Missouri law protects borrowers in that lenders who have covered their expenses from the sale of the vehicle, are required to “return the excess funds to the customer.” Conversely, if there is a deficit amount after the sale of the vehicle, the borrower is required to pay that amount in full. Lenders are also entitled to charge interest on this amount.

Charged Off Debts and Debts in Collections – What Can Collectors Do To Me?

You are behind on a credit card or other unsecured loan (a loan that does not have any collateral like a car, boat or house). And the first call from a debt collector has come into you. What is their next step? Can they put you in jail? Can they sue you? Can they threaten to call your boss and have you fired?

Since I had 12 credit cards and one personal loan in delinquent status back in 1998 and 1999, I know what you are going through. The fear of the unknown is probably very large for you right now. Get some peace of mind! I will explain what can and cannot happen to you.

1. You will not go to jail for not paying your loan.

The police will not show up at your door with handcuffs. We do not have debtor prison in the USA. In fact it is a violation of the FDCPA (Fair Debt Collection Practices Act) for anyone to threaten you with arrest!

2. The debt generally does not get sold to a collection agency until you have been late for six months.

Your creditor is hoping to get payment from you. But after 180 days, he has to clean up his books. So he will transfer or sell your debt to a collection agency. This is called a charge off. This does not mean that your debt has been wiped out! It is an accounting term; your debt still remains.

3. You can control the collector’s phone calls to you.

Collectors can only contact you during reasonable hours, which generally is 8am-9pm your time. If you do not want to be called anymore, either at work, at home, or both, you must get the mailing address of the collection agency and send a notice to stop calling, IN WRITING. Some collection employees are good about putting notes in your file to stop calling but many are not good about this. I recommend that you send this Certified with Proof of Mailing in case they continue to call you. That way you have proof to threaten them with legal action for violating the FDCPA.

4. You can control the collector’s mailings to you.

Same as the phone calls. If you send them written notice to not contact you by mail, they must stop. Though they legally can send you two more notifications. One, they received your notice and will stop contact with you. Two, they are taking an action against you, such as a lawsuit. Everything else will stop.

5. They will contact your relatives, employer and possibly friends.

Generally only if they cannot find you. This is called skip tracing. Legally the collector can only discuss the debt with you, so he will use phrases like “It is very important that I speak with ____” or “Please have ____ call me as soon as possible.” They will try to get your phone number or address.

Your relatives and friends can tell the collector to stop calling them.

If your employer does not want you getting phone interruptions while on duty, the collector is supposed to stop calling. Which makes sense because the collector has zero chance of getting any money from you if you get fired!

6. The collector cannot threaten to sue you.

The key word here is “threaten”. If the collector has started the legal paperwork to take you to court, then he can tell you that because it is a fact, not a threat. So if you receive this call or letter, take it very seriously.

7. If the collector wins in court, he will get a judgment against you.

The judgment is what allows a collector to legally garnish your wages, garnish your bank account, put a lien on your house, and even sell your car to collect the debt. He cannot garnish social security payments, retirement accounts, disability payments, etc.

A collector usually will not spend the money to take you to court if you have no assets that he can get to. This is called being judgment-proof. So if you are unemployed and have few assets, the judgment is all bark and no bite.

Hopefully this relieves the fear of the unknown for you. So if a collector calls, do you want him to stop? Do you want to negotiate the debt with him? Do you see yourself as judgment-proof so the debt will never be collected? You now know what can and cannot happen to you if you do not settle or pay off your debt. Sleep peacefully tonight!

The Meaning Of A Bad Credit Loan

A personal loan offered for bad credit to customers is a bad credit loan. Its repayment terms are not fixed and hence it will suit the person who takes the loan. In a way it is like taking the first step towards rewriting your credit history. If the person is above the age of 18 and a permanent resident of the country, and who is employed, then he is eligible to apply for this loan. They may need to use it to pay for some important personal event.

The Options Available If A Consolidation Loan Is Not Granted

If one is applying for a debt consolidation loan, it will not be granted if you have debts to clear and also a bad credit history. The lenders do not think that you will be able to pay back. The only options available for you are Personal Insolvency Agreement or Debt Agreement. There are a few people who are ready to sanction a personal loan even with a bad credit history, but then you will be charged a high rate of interest. A few kinds of bad credit loans are payday loans, car loans and home loans

Other Options Available For Repayments Of Debts

A debt agreement is another option available for those who cannot pay back the entire amount of debt, but have funds to repay a part of it. If you are not able to get a personal loan because of bad credit history, this is a good alternative. All the debts are brought under one umbrella. All loans that are not secured like old utility bills, credit cards, personal loans, repossessed cars, will be pooled together. You are required to make one regular payment weekly, fortnightly or monthly. No legal action can be taken against you and there will be a freeze on the interest charges. Finally whatever you cannot repay is cancelled.

The Concerns Of Proposing A Debt Agreement

Since the person who intends a debt agreement, commits an act of bankruptcy which means that if the proposal is not accepted by the creditors, an application can be made to the court to declare the debtor bankrupt. The debtor’s chances of obtaining any loans even personal loans for bad credit will be affected since his name will be mentioned in the credit reporting organisation’s records and this will remain there for about seven years. Secured creditors can sell any asset that was offered as security in case of a default. The payments made towards unsecured creditors are only in proportion of their debts. Debt Agreement should be applied for, only if there is no chance of repayment of loans on time, otherwise debt consolidation is better.

How to Get Approval for a Home Mortgage Loan

If you are planning to apply for a home loan, check out the following helpful tips to get your application approved.

Know Your Credit Score

Credit activity and credit scores will greatly affect your mortgage approval. Lenders usually require minimum amount of credit score that should be maintained so that your conventional mortgage loan request will not be denied.

Also, having derogatory credit information might hinder mortgage approval. To avoid unwanted denial of your requested loan, you should lower your debts, pay bills on time, and fix errors on credit reports.

Save Your Cash

Mortgage lenders require down payments which depend on the kind of loan. If you have the means, pay a higher down payment. This will lower your balance and alleviates your private mortgage insurance.

Down payment is not the only fee you should be worrying about. Acquiring a mortgage also involves home inspections, title searches, closing costs, application fees, credit report fees and other fees. Save up cash for these payable fees.

Stay at Your Job

Changes on your employment and/or income status will have a major effect on the mortgage process. The information you provided in your application will be the basis of your home loan approval. Giving up a job to be self-employed or getting a lower paying job will make a wrench in the plans, leading to a reevaluation of your finances to check if you’re still qualified for the loan.

Pay Debt & Avoid New Debt

Qualifying for a loan doesn’t require that your credit card be zero balance. But, it’s better that you owe less to your creditors. Your debts determine whether you will get a mortgage or not. Also, it will determine how much you will acquire from the lender. When you have many credit card debts which makes your debt ratio high, the lender might refuse your loan request or provide a lower mortgage.

However, even though you get approval for a mortgage with debt, it is advised that new debt should be avoided while under the mortgage process. Before the mortgage closing, lenders recheck credit and when they found out that there are new debts they can stop the closing.

Have Pre-Approval for a Mortgage

Having your home loan pre-approved will help you determine what you can afford before bidding on properties and what interest rate should you be paying on the loan.

Determine What You Can Afford

Choose a home that will fit your budget. Though some lenders pre-approved applicants for more than what they can afford, be smart, live within your means and purchase a home that you can afford.

Improve Your Credit Scores – The Easy Way

The credit score of an individual plays an important role in determining his/her eligibility for a certain type of loan. People While a good credit score makes one easily eligible to seek finances, a negative credit score does just the opposite. Though a majority of lenders are apprehensive of extending loans to people with bad credit scores, this should not dampen the spirits of an individual from seeking loans to meet his/ her necessities. Bankruptcy or a poor credit score is definitely not the end of the road. There are companies that specialize in providing bad credit loans to the customers. Apart from that, with proper knowledge and application over a period of time, an individual can improve his credit score and become a preferred customer for the financing companies yet again.

Firstly, it helps to find out the cause of a low credit score. Figure out if your demands are more than what you can afford, whether you are an extravagant spender, or do you save enough. Reasoning these out will certainly help in finding a way by which you can curb your expenses and have a control on your finances.

Have a good look at your credit report. A credit report is a cumulative report based on the payment history, length of credit history, amounts owed, type of credit and any new credit opted for. Check if there are any errors related to the record of transactions carried out by you. In case of such errors, correspond with your reporting agency and ask for a detailed investigation to fix the problems.

Try to improve your credit scores by paying the bills on time. Clear up the past due bills, if any. Get in touch with your creditors and work out a payment plan that meets the interest of both the parties. Try to minimize your credit card balances and pay off the debts rather than opening new accounts which can in turn lower your credit score. However if you have zero balance unused accounts, do not close them as it might do some good to your overall credit score.

A low credit score holder finds it difficult to qualify for an unsecured credit card or an auto loan. In such a case, a secured credit card is a wiser option. Secured cards give a credit limit that is equal to the amount you have at the issuing bank. Make sure the secured credit card has a reasonable annual fee and also reports your transactions to the major credit bureaus such as Equifax, Experian and Transunion. Your credit score will only improve if your payment details are reported to these credit bureaus. With regular payments one can get the secured credit card upgraded to an unsecured one in a years time. People intending to buy a car can opt for specialized auto loans such as bad credit car loans. These loans charge a higher rate of interest than the general ones but on-time payment of EMIs for a bad credit car loan certainly helps the credit score. Once the score improves, a customer can refinance it with a general car loan that charges a lower rate of interest.

There is nothing to feel downhearted and devastated when you have a low credit score or have run bankrupt. Rather, this should be taken as an opportunity to re-plan your finances in a better way. A wise and strategic approach towards your finances will definitely help you to overcome this temporary phase by improving and building up a good credit score.

What Is Auto Management?

Auto Management, also commonly called Automotive Management, is the management of services around vehicle management. Auto Management includes management for auto repair shops, car and truck dealers, rentals, body shops and more.

So, for a normal person, Auto Management is management of everything that has to do with cars, trucks and other vehicles.

This is a really wide area that covers a lot and is tailored for the automotive area, even though you would see it bringing up areas that are common to most other businesses. Examples of specific automotive areas are:

  • Used car dealer management
  • Franchise management
  • New car dealer management
  • Sales and finance management tailored to automotive industry
  • Car inventory management
  • Spare parts management
  • Dealership management
  • Customer management
  • Showroom management
  • Insurance management
  • Leasing management
  • Sales management
  • Repair and service management
  • Labor management

As you see in the list there are quite a few areas. For most areas you are able to find the same support and management regardless of what vehicle you are involved with, including cars, trucks, motorcycles and boats.

One way to understand what is needed you can just see what is needed to manage when you want to get a car (or any other vehicle).

You start by going to the car dealer. They will show you examples of cars in their showroom. The showroom is designed in a way so that they will be able to sell cars that are most interesting for them to sell easier. Some car companies require a higher visibility than others which is also important for the showroom design.

Once you have chosen a car model you will be able to tailor your new car according to your demands. All these extras are added in the system and a few months later you will receive the car.

Should you lease the car or buy it? If you buy it, do you need a loan for it?

While waiting for your car you might want to rent another car to have something to drive.

You receive your car and of course there are things you want to change. You might want to have some winter tires or other things from the car dealer. You will need insurance and might bring in extra insurance for towing service and free rentals if something happens.

After 6 months it is time for the first service. It includes having personnel being booked to take care of the car. You might have been in a small accident and need the body to be fixed and therefore need to hand it in to that specific area of the car repair shop. This is continuous over a few years and you decide to sell the car. The car dealer makes you a deal to give you another car in exchange and you pay some extra money since the car is new.

The car dealer now has a used car they need to sell. This is another process but with a lot of similarities to sales of a new car.

To support these processes are different kinds of Auto Management Software (or Automotive Software). Different auto management software have different purposes and few include the whole area. There are different kind of auto management software to include support for the areas specified above, such as:

  • Dealer Management System (DMS)
  • CRM Software specific to the automotive industry
  • Inventory Management Software
  • Time Management Software
  • Lead Management Software
  • Finance Software
  • Sales Management Software
  • Warranty Submission System
  • Auction Management Software
  • Vehicle Showroom Management System

Dealer Management Systems usually covers several areas to make it possible to have less software included in the same workplace. This usually makes the working processes more efficient.

The area is so big that this article only covers a brief introduction of what areas to consider and what kind of auto management software that might be interesting to look further at.