Arizona has been trying to regulate unsecured lending, and had success in the early 2000’s by eliminating payday loans with the and passing the Secondary Motor Vehicle Finance Transaction law. The Arizona Department of Financial Institutions and the Southwest Center for Economic Integrity have been the ones to work towards better lending laws for the state of Arizona. They have worked to make laws for lenders so that there are consequences for immoral lending.
Are there laws governing registration loans?
A few years ago, the state of Arizona decided that they would no longer allow payday loans, because they thought unsecured, low dollar, short term loans would hurt the population. Then lenders came up with the idea that they could use a car registration for a loan. This is still an unsecured loan, and there is still a credit check, so they are somewhat similar in that they are both unsecured loans. Registration loans are different than title loans because they don’t use collateral. There are regulations that go over lending caps and if there is no rate stated in writing, your loans automatically cap at 10% interest.
The reason many registration loans require multiple banking information and paystub documents is because they are heavily reliant on repayment. While some registration loan lenders do not take their delinquent loans to collections, many of them will file a suite in civil court and that goes onto your credit history.
When you consider the cons of getting an unsecured loan, do you really want to go through all that when there are alternatives that are simpler and less aggressive? There is another alternative to consider, and that’s getting a car title loan. Car title loans are secured loans, so they have certain freedoms that unsecured loans do not. They offer competitive interest rates, longer repayment terms, and they rely on your ability to repay your loan instead of your credit history. The more involved the process, the longer it will take to get paid. With more forms and steps, the longer you will have to wait for relief.
Do these laws still affect title loans?
The laws affect all kinds of lending, however having an unsecured loan like a registration loan is different than having a loan that is secured. The laws do state that the more you borrow, the less of an interest rate you must pay. The interest rates in Arizona are regulated to fall between 120-204% APR. There are no limits to the size of the loan, the duration of the loan terms, (with LoanMart, our terms range from 12-48 months) and no limit to the ability for the lender to collect on deficient balances. Having a secured loan, means there is collateral, so in terms of defaulting on your secured car title loan, there is only repossession and repayment. Registration laws do not offer the peace of mind that secured loans do. LoanMart uses secured loans, and we work with you to come up with repayment terms that you can afford and can feel comfortable paying1. We offer repayment terms from 12-48 months, giving you enough breathing room for successful repayments. LoanMart also offers competitive interest rates when it comes to repayment. We do not use a collection service as our first option. When you get a car title loan with LoanMart, we make it simple and easy for you to get your money while still following Arizona state lending laws.
How does LoanMart work with Arizona Loan laws?
LoanMart has been helping customers with their car title loan needs since 2002 and have helped over 150,000 customers with their lending needs2. With this in mind, we make it our business to be in full compliance with state laws, to ensure the safest and easiest lending solution. If you ever have questions about our title loan lending process, feel free to give LoanMart a call at 1-855-422-7412, visit us at any of our participating stores, apply online or use your mobile device to apply with LoanMart. When you are ready to apply, then you can begin the application process whenever you are ready and get cash when you need it.
When you apply for a car title loan at LoanMart you need to bring the following:
- a car title to a qualifying car in your name
- a government-issued ID (driver’s license, state ID, etc.)
- proof of income (such as paystubs, invoices or bank account statements) to show your ability to repay the loan
- proof of residence (such as a recent utility bill)
Staying in compliance with state laws not only helps us build trust with our customers, it also helps everyone stay out of trouble. We pride ourselves in being able to help our customers while staying away from predatory loan practices. LoanMart understands that you have financial goals that you are striving for. We want to help you either in reaching those goals and getting you into a better financial situation or with your financial emergency1.
LoanMart also has tools in place for making applying for a car title loan and repaying your car title loan, easy and convenient. You can apply for a car title loan and make payments via:
- Online on the LoanMart website
- Calling 1-855-422-7412
- Texting 1-818-315-8741
- Using the LoanMart Mobile App
- Visiting us at a participating store
If you have any questions about Arizona lending for car title loans, or simply want to get started, you can refer to the list above to contact one of our many helpful agents, and get started on reaching your financial goals.