Are there laws that prevent a car from being repossessed if it is a family’s only form a transportation?

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Are there laws that prevent a car from being repossessed if it is a family’s only form a transportation?

We were forced to take out a title loan in MO since they are illegal in NE. The lender is charging enormous interest daily for a $1,000 loan. We’re barely able to make the interest. I just wanted to see if there a limit that they can charge or are we just screwed?

Asked on March 30, 2011 under General Practice, Nebraska

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If you were forced to take out a title loan in one state because they are illegal in your resident state (where the car is registered supposedly), you might be able to obtain all of your money back that you paid in because usually those loans are considered illegal since that entity cannot be licensed in your state to conduct business with Nebraska consumers. Contact the agency who regulates such lenders (file a complaint with the state attorney general and state banking department) and then contact the credit reporting agencies that show this title loan. Dispute the loan and go from there. As to your general question regarding car repossession, unlike homestead laws concerning your primary home, your motor vehicle could be repossessed if this loan winds up being enforceable even if it the primary form of transportation.


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