Unfortunately, not all Kansas City car title loan lenders are created equal. While some lenders like Waldo Financial strive for transparent lending and encourage customers to be financially responsible, some lenders are more interested in taking advantage of customers with predatory lending practices. Consumers should be aware of the costly pitfalls of working with unscrupulous lenders and always read the fine print before signing a contract.
Many borrowers who turn to Kansas City car title loans are under pressure financially and skim over the fine print, which may contain hidden costs and scary stipulations. There are some lenders that require customers provide a copy of their car keys, but the worst will even put a GPS tracking device into the car so they can locate it or even disable the vehicle for a late payment. There may even be hidden repossession fees of up to $400, which would be added to the outstanding balance.
Consumers should also be aware that some lenders are unclear about the interest rate charged on the loan. Some will quote interest rates that do not apply to the terms of the loan the customer wants. A transparent lender will be upfront and clear about the loan’s interest rate and honest about any fees that apply to the car title loan.
Another major issue consumers should watch for is penalties for paying off the title loan early. This penalty is designed to trap consumers in a cycle of debt, as the borrower is forced to either pay a hefty penalty or keep the loan longer to pay more interest. Waldo Financial encourages consumers to make early payments on their loan or make more than the minimum payment with no prepayment penalties on any loans.
Waldo Financial strives for transparent and responsible lending, only offering car title loans to borrowers who can afford to repay. Consumers should seek out responsible lenders who consider gross monthly income and affordability during underwriting rather than saddling borrowers with a loan they can’t afford. While there will always be unethical lenders in any industry, consumers should take care to protect themselves while remembering that not all lenders are created equal. Waldo Financial aims to set a new standard for car title loans in Kansas City with excellent customer service and a dedication to helping consumers get the loan they need with terms they can afford.