Amarillo, TX - A class action lawsuit against TitleMax of Texas involves two local cases, which claim the business is knowingly charging customers unfairly.
Local attorney, Mike Warner, said those looking to get a quick loan should be aware of TitleMax. He said the business is conning its clients out of thousands of dollars.
If you're behind on some bills and need a quick loan, TitleMax said "Your car title is your credit."
The slogan reads, "I got my title back with TitleMax," but for many customers, that day has yet to come.
"It's just a vicious cycle," Warner said. "It's just a hustle, that's what it is."
Warner said TitleMax of Texas is misleading customers to believe they can easily pay off a quick loan, however for his clients, it's been nothing but a never ending nightmare.
"You have to pay off the amount financed in one month," Warner said. "These are one month notes. And people don't realize that because that's not what's represented to them. 'This is just a bank note. Just sign these papers, no big deal' and that's not true."
Warner adds if the title isn't paid off in that one month, TitleMax will tack on a late fee. He said the company will then use scare tactics to get you to sign another note for a loan.
"We're gonna come repossess your vehicle," Warner said of TitleMax. "'Well I don't want that to happen,' 'Well you need to sign here.' 'OK well here's a new CSO fee', which is basically just a loan origination fee that they charge that's exorbitant, it's crazy how much that fee is."
In the end, Warner said those who fall for this practice will end up in an even worse spot than they started, owing sometimes double or triple the original loan.
And its not just Amarillo who's having these issues, Denton County, along with the city of Austin are among other places filing suit.
Warner said if you're getting a title loan, be cautious of the lender. You should receive all documents for your loan, unlike what TitleMax is reportedly doing.
Warner also advises anyone who is stuck in this situation to, if you can, pay off what you owe immediately and call an attorney.