The internet is full of "lead aggregators" and unlicensed offshore lenders. Handing your car title to a scammer can result in identity theft or losing your car with no legal recourse.
Red Flags of a Title Loan Scam
- No Physical Address: If their website doesn't list a street address (or lists a PO Box in another country), run.
- "No Title Needed": A real title loan requires a title. If they offer money without it, it's likely a "phishing" scam trying to get your bank details.
- Guaranteed Approval: No legitimate lender guarantees approval before seeing the collateral.
- Asking for Upfront Fees: If they ask you to wire money or buy a gift card to "secure" the loan, it is a scam. Legitimate fees are deducted from the loan proceeds after you are approved.
How to Verify
Check the Idaho Department of Finance website. All legitimate lenders must be licensed to operate in the state. If they aren't on the list, they are operating illegally, and you void your consumer protections by using them.
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Sarah Jenkins
Financial EditorSarah is a financial expert with over 10 years of experience in consumer lending. She is dedicated to transparency in the lending market.
