May I sue a title loan company for refusing to release my title even after the balance was paid in full?
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May I sue a title loan company for refusing to release my title even after the balance was paid in full?
My car was repossesd for late payment; I paid the full balance within 24 hours and picked up car. However, loan company refused to release title and claimed I had to pay an extra $325 for impound fees. My receipt says “paid in full”. The car was release upon presentation of receipt, so I don’t understand the sudden and mysterious charge. How do I rectify this legally? The loan company is not cooperating as far as trying to come to a resolution. Should I sue in small claims court? Is it worth it or should i just pay the extra $325 and be on my way?
Asked on June 18, 2012 under General Practice, Texas
Answers:
B.H.F., Member, Texas State Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
It's legal if the contact that you signed gives them this remedy... namely, charging impound fees after the release of repo'd cars. If your agreement doesn't have this penality or remedy spelled out, then no, they cannot charge you. If they are overcharging you a fee, you can file a complaint with the Texas Attorney General or your local BBB. Both tend to be a bit slow, but you may still want to file the complaint in the event this organizaiton is already on their radar. You can also file suit in small claims, but to hire an attorney or to pay the filing fees is going to run you more than $325. If you win the lawsuit, you may be able make them pay these fees..... if you loose, you'll have to pay the $325 plus absorb any of the costs of filing the case. Some attorneys provide free or inexpensive consulations-- so before you make a final decision, if you are not clear about how your contract reads, then have an attorney look at it to see what your contract specific options are before you waste a lot of money with a lawsuit.
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