Short Answer: Once you miss a LoanMax payment, your account will immediately go into collections and your vehicle can be repossessed. You can get the vehicle back by paying off the entirety of your loan balance, plus interest, repossession fees, and other charges. For more details of the LoanMax repossession policy, see below.
LoanMax Repossession Policy
LoanMax Title Loans provides short-term loans in 17 states often up to $10,000 that are secured by your car title. Failure to make a payment on your loan can start the repossession process — even if you’re only one day late.
We called LoanMax’s corporate customer service department at (877) 511-2274 to find out more about the LoanMax repossession policy. We were told that payment is due every 30 days and that the repossession process starts as soon as your payment is one or more days late.
Following a missed payment, LoanMax’s in-house collections department will try to contact you by phone and/or text. If you fail to bring your account current, your vehicle may be repossessed.
On its website, LoanMax says it “believes in working with customers who fall behind on payments,” so it would be best to contact LoanMax if you find you are unable to make a payment on-time.
How to Get the Vehicle Back
If LoanMax repossesses your vehicle, you can still get it back by paying the loan balance in full within 10 business days. Keep in mind, you’ll also need to pay daily, prorated interest and repossession fees — plus tow charges and storage fees, if any. LoanMax representatives were unable to provide specifics regarding interest rates, repossession fees, tow charges, and storage fees; third-party reports indicate that repossession fees typically run in the hundreds of dollars.
A Warning on Title Loans
The Federal Trade Commission (FTC) urges potential borrowers to avoid car title loans whenever possible. In addition to extremely high interest rates (that sometimes reach triple digits), the risk involved in using your car as collateral is high. If you need cash, the FTC recommends negotiating directly with other creditors or taking out a small loan from a bank or credit union instead.