12 On Your Side: Woman says title loan business took her for a ride

News 12 at 6 o'clock / Thursday, Aug. 1, 2013

AUGUSTA, Ga. (WRDW) -- After facing financial hardship, an Augusta woman says she took out a title loan on her car. Now it could have devastating effects on her life.

"The water was due, the light bill was due and the gas bill was due," said Mildred Armour.

On a fixed income and strapped for cash after unexpected medical bills in January, Armour says she borrowed $4,000 on her car's title.

"It sounded so remarkable. Unique that they are helping people," Armour said.

But facing more hardship last month she says the company offered her additional money to pay a bill, only after agreeing to a new two-year loan, raising her monthly payments from $390 to $413.

But this week, she got another shocker.

"I have a tag from my vehicle," Armour said.

And that is all after she says despite a 30-day late payment grace period, her car was repossessed.

"Only thing they telling me now is I want $4,432," Armour said.

Or she says they will sell her car with her still owing thousands on the loan.

Gigi Turner with Augusta's Better Business Bureau says consumers should know exactly what the high interest rate means because not paying it in full causes the interest to roll over.

"To involve yourself in this type of loan is if it is an emergency and you realize, you understand that I can pay this off before the term ends," Turner said.

Or she says risk facing interest rates as high as 300 percent.

Meanwhile, Armour says she feels betrayed.

"It's hard fighting back tears, but I have to. I have to be strong, but it's not easy," Armour said.

The BBB says those who are targeted by these companies are those with bad credit, senior citizens, members of the military and low-income folks.

Consumer counselors suggest borrowing from family or friends first. They say otherwise you risk a snowball effect because without a car, you cannot get to work, school or even medical care if needed.


Have information or an opinion about this story? Click here to contact the newsroom.


Copyright WRDW-TV News 12. All rights reserved. This material may not be republished without express written permission.


WRDW.com is happy to provide a forum for commenting and discussion. Please respect and abide by the house rules:

Keep it clean, keep it civil, keep it truthful, stay on topic, be responsible, share your knowledge, and please suggest removal of comments that violate these standards.

powered by Disqus
Mailing Address: P.O. Box 1212 Augusta, GA 30903 Main Telephone: (803) 278-1212 Newsroom: (803) 278-3111 Fax: (803) 442-4561
Gray Television, Inc. - Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 217833251 - wrdw.com/a?a=217833251