I got a title pawn over a year ago and then couldn’t pay it off. I moved to another state shortly after I got the loan. I expected the car would be repossessed but has not been. I haven’t made payments in a year. The car is just sitting in my yard because it needs repairs I can’t afford so I can’t drive the car across another state to surrender it. Will they sue me for the amount owed? Will they keep adding interest to the loan? I haven’t recieved any written communication from them in a year. I need to get out of the loan or to get rid of the car
Because title pawn laws vary from state to state, it will matter what state the title pawn was made in. You may want to speak with an attorney who you can give more information to. So do not make any important decisions based on what anyone (myself included) says in this question/answer forum.
As a general rule (under Georgia law), there is no personal liability under a title pawn. So if Georgia law applies, you can't be sued to pay the debt. The only recourse the lender has is to take the car. Under Georgia law, just giving them the car back fulfills the transaction.
So if you want to get rid of the car, you can always try to get the title pawn to take it. If the car is not worth much, they may not be interested. If that is the case, they still hold the title, so you might get in trouble if you transfer the car or even if you scrap it.
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A car title pawn is NOT a loan. I don't know about other states, but under GA law, if you pawn a car title, all they can do is take title to the car if you do not redeem it in the time specified; they can NOT sue you. They may huff and puff and say you should sign up with them for an extension of time, with their ridiculous interest rates. But unless the car is worth a lot, they are very unlikely to repo it. Have it towed to their lot and dropped off since they have the title.
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