Are there Laws Governing Registration Loans?
Yes. Car registration loans in Arizona are covered by the Arizona Revised Statues, Title 44. 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. Companies then operating as payday lenders came up with the idea that they could use a car registration for a loan, and make loans under Title 44 of the Arizona Revised Statutes. Registration loans are not secured by a free and clear title but by the registration and a secondary interest in a vehicle that the borrower does not own outright. There is typically still a credit check and a requirement to provide bank account information to the lender, so they are somewhat similar to payday loans. Registration loans are different than title loans because they don’t use a clear title as collateral, and therefore tend to come with smaller loan amounts and more stringent repayment requirements.
The reason many registration loans require bank account information and paystub documents is because they are heavily reliant on fast repayment, and intended to replace payday loans. Many registration loan lenders do assign their delinquent loans to third-party collections, and some also file suits in civil court which can impact your credit history.
When you consider the cons of getting a registration loan, do you really want to go through all that when there are alternatives that may be simpler and less aggressive? There is another alternative to consider, and that’s getting an Arizona car title loan. Car title loans are secured loans, so they have certain flexibility 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.
Do these Laws Still Affect Title Loans?
The Arizona Revised Statues affect all kinds of lending, including title loans. However, having an unsecured loan or a registration loan is different than having a loan that is secured, which tends to allow for higher loan amounts. While the laws do not differentiate between registration loans and title loans, they state that the more you borrow, the lower the maximum allowable interest rate is that the lender may charge you. There are no limits to the size of the loan, the duration of the loan terms, 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 Phoenix title loans, there is the possibility of facing repossession to ensure repayment of your loan obligation. LoanMart markets secured loans, and we work with you to come up with repayment terms that you can afford and can feel comfortable paying1 so we can minimize the likelihood of financial issues when repaying your title loan. We offer extended repayment terms, giving you enough breathing room for successful repayments. LoanMart also offers competitive interest rates and monthly payments when it comes to getting approved for a loan1. When you get car title loans in Arizona with LoanMart, we make it simple and easy for qualified consumers to get 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 250,000 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 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 855-422-7412
- Texting 855-422-7412
- Using the LoanMart Mobile App
- Visiting 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.