Auto Title Loan Closures
Here at Cleveland Scrap Cars, the first choice to scrap a car in Cleveland and where to junk a car regardless of condition, we recognize that these auto title lenders seem to be saturating low-end neighborhoods. We are a site that provides a fast price for a damaged car and allows you to sell your scrap car quickly; however we do not offer these lending options.
An August 4, 2015 article on foxsanantonio.com titled ‘Loan companies shutting down’ composed by Ashlei King highlighted the following: “Loan companies are feeling the effects of a city ordinance 2 years after it’s passed. There’s a loan company on almost every corner in San Antonio. While people still use these companies, San Antonio city records show more and more loan businesses are packing up and moving out of city limits. At the end of 2012, there were 262 credit access businesses in San Antonio. Currently, there are only 167.
Since former city leaders also thought these companies hurt people already struggling, they passed a city ordinance in 2013 requiring these types of businesses to register with the city. Officials said there are currently 7 breaking that law. The ordinance also limits payday loans to 20% of your gross monthly income and it limits auto title loans to either 3% of your gross annual income or 70% of the vehicle value. Some said the ordinance is pushing these businesses out of town.
A Consumer Service Alliance of TX spokesperson released the following statement: “As customers continue to move to the Internet & to stores in the suburbs, companies are being forced to take a hard look at the continued viability of their stores within the city of San Antonio. The ordinance has effectively imposed a tax on San Antonio consumers either by forcing them to pay higher fees on Internet loans or by forcing them to buy a tank of gas and drive to get the type of loan they need. Studies using actual loan data have shown that the municipal ordinance has not decreased demand for credit; it has simply caused borrowers to seek more expensive alternatives outside of the city.
We called and found some EZ Money loan shops in San Antonio are shutting down next month. An employee said the stores are trying to make sure all of its customers are paid off before it closes. The customers will also be allowed to get a loan with another payday company to pay off their existing loan with EZ Money. If the loans are not paid off before the store closes, then the customer will be reported to the credit agency. The full article is available at foxsanantonio.com
The idea of obtaining a loan from another payday company to pay the outstanding one with another payday company is truly a reflection of this option as a whole—a bad option. We routinely receive calls from these desperate borrowers who have title loans on their vehicles and something goes wrong with the vehicle and wish to get a price for a damaged car. We explain to them that you cannot scrap a car in Cleveland or sell your scrap car when you have a loan on it. These desperate vehicle owners next ask me where to junk a car in this situation and I explain to them that you cannot scrap or sell a vehicle that you do not own! The way I look at it, if you scrap an unwanted vehicle for cash, you then are able to move on. With these lenders, the borrower is simply setting themselves up for problems if something happens to the vehicle.
The requirements to sell your scrap car or scrap a car in Cleveland, Lakewood or Parma are that you have the title and a matching ID. Any place in Ohio where to junk a car will have the same requirements. Take the first step today by contacting our junk car buyer at (216) 282-JUNK for a price for a damaged car or a price quote on a non-running vehicle. We offer fast damaged car removal as part of our quote for an old car. Even a totaled car will generally have some scrap value. Are you asking yourself who buys junk cars in Wickliffe, Euclid or Eastlake? Are you looking to sell a junk car in Fairview Park, Ohio City or the Detroit-Shoreway areas? We provide scrap car hauler and scrap vehicle buying services throughout Seven Hills, Independence and Garfield Heights.