In recent times, the automotive finance industry has witnessed some major players closing their doors, leaving borrowers in a state of uncertainty. The latest company to face this fate is American Car Center, a Buy Here Pay Here chain with over 40 locations across 10 states. With news of its closure and the termination of 288 employees, many borrowers are left wondering about the fate of their loans and, more importantly, their vehicle titles.
The Domino Effect in Automotive Finance
American Car Center’s closure is just one example of a domino effect in the automotive finance industry. As finance companies shut down, borrowers are left in limbo, questioning the implications for their ongoing loans and the security of their vehicle titles.
Immediate Concerns for Borrowers
If you find yourself with an open loan from a company that’s closing its doors, such as American Car Center, immediate concerns arise:
- Loan Processing: With the company ceasing operations, processing your loan payments and paperwork becomes uncertain. The big question is, who will take over your loan?
- Title Retrieval: The most significant concern for borrowers is the fate of their vehicle titles. If the finance company closes, how will you secure your title?
Recommended Actions for Borrowers
While we’re not legal experts, we can provide some practical advice for borrowers facing this situation:
- File for Title Recovery: Immediately file with your state’s Dealer Licensing Division for title recovery. This step ensures that you proactively pursue your rights to obtain the title for your vehicle.
- Explore Civil Lien Process: Consider starting the civil lien process in your jurisdiction to declare yourself as the owner of the vehicle. Consult legal advice to understand your rights and the best course of action.
Why Act Early Matters
Waiting until the end of your loan term or delaying action may have consequences. Funding from restitution funds or other avenues might not be available by then. Acting promptly safeguards your rights and ensures you take the necessary steps to secure your title or lien release.
Seek Legal Advice
While these steps offer practical guidance, it’s crucial to consult with a legal professional. Understanding your consumer protection rights and receiving tailored advice based on your specific situation is essential.
Take Action Now
If you find yourself in the position of a borrower with a lender going out of business, such as American Car Center, don’t wait. Initiate the title recovery process, explore the civil lien option, and seek legal advice to protect your interests. Acting early can make a significant difference in securing your title and navigating the uncertainties that come with a lender’s closure.**
Remember, the information provided here is not legal advice, and consulting with a legal professional is recommended for personalized guidance based on your circumstances.