Legal Question in Consumer Law in Georgia

Title Pawns

I took out a car title loan of $1500 on a car. It was recently involved in a wreck and totaled. It was the other person's fault. My insurance company will give me $6000 for the car. Since the title pawn company has the title and owns the car legally (right?), are they entitled to the entire $6000? Or, are they only entitled to the amount I still owe them? My insurance company doesn't know of this loan yet. When I tell them, will they pay the title company the balance on the loan and the rest to me? I don't know how this works. I know those title loan companies prey on people. I don't want to get stuck without any money for another car.


Asked on 12/07/06, 1:07 pm

2 Answers from Attorneys
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

Re: Title Pawns

The Title Pawn gets their balance (plus interest). You get the rest.

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Answered on 12/07/06, 1:08 pm
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: Title Pawns

As stated, the Title Pawn company gets principal and interest, but be sure to read your contract with them. ALso keep in mind that the interest clock keeps ticking every week. One way to avoid any problems is to pay them off if possible, and get the title back. You don't want to get caught up in potential problems, or keep paying the high rates, of interest.

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Answered on 12/07/06, 1:13 pm


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