QUESTION
What recourse do I have if I signed for a title loan in TN that exceeds the legal limit of $2500? Can I not pay?
Asked on Oct 28th, 2019 on Debtor and Creditor - Tennessee
More details to this question:
I and my car are based in TN. Signed on a $5000 title loan with a company based on GA. Since the law in TN does not allow the offering of title loans more than $2500, can I refuse to make any further payments and demand my title back for the loan being illegal?
1 ANSWER
Your are correct that the legal limit for a title loan is $2,500 and if you had borrowed that from a Tennessee based company you would not have had to repay that portion over $2,500. However, if you went to Georgia to take out the $5,000 title loan, then the Georgia based company is not subject to the $2,500 limitation of Tennessee (even if you and your car are based in Tennessee) and you would have to repay the loan.
Answered on Oct 29th, 2019 at 11:54 AM