GENERAL CODE OF PRACTICE/ POLICY ON RESPONSIBLE LENDING
Panhandle Title we are proud to be a responsible participant in the Title Pawn industry. We strive to provide excellent service to our customers, and therefore adopt the following as representative of our core values:
- We will not encourage customers to engage in a pawn transaction if we do not believe that our service is appropriate for them.
- We will not intentionally market to people who are financially insecure.
We will not encourage people to borrow more than we believe they can afford to repay.
- We will do our best to provide information, so our customers have a clear and understanding of the services we provide.
- We will comply with appropriate state and local regulations related to short-term loans.
First, determine whether a pawn transaction is in your best interest. If you do not feel that you will realistically be able to pay it back in a timely manner, understand that you may run the risk of incurring extra charges by allowing the contract to rollover.
We recommend that you not engage in a pawn transaction unless you fully understand, and are comfortable with, the terms and conditions. The finance charge is 25% every 30-calendar days on the principle balance of the pawn transaction. In addition, fee(s) may be charged to register a lien on the title and are only charged in the event that the lien is secured and due at the time that the account is paid in full. Because of the high risk associated with short-term loans, the Annual Percentage Rate (APR) can be as much as 300%.
Panhandle Title facilitates pawn transactions that are conducted in a secure and responsible manner, with appropriate consumer protections. Our principles and core values include, but are not limited to, full disclosure, truthful advertising, and fair collections practices.
We comply with the disclosure requirements of the state in which the title pawn office is located and with federal disclosure requirements including the Federal Truth in Lending Act. Our title pawn contracts with customers fully outline the terms of the transaction. We disclose the cost of the service fee both as a dollar amount and as an annual percentage rate (“APR”). We further ensure full disclosure by making rates clearly identifiable to customers before they enter into the transaction process, unless not permitted by federal, state, or local law.
We comply with all applicable laws. As such, it is our policy to not charge any fees or rates for a pawn transaction that are deemed unauthorized by state or federal law.
Truth In Advertising
We do not advertise the title pawn service in any false, misleading, or deceptive manner, and promote only the responsible use of our title pawn service.
Encouraging Consumer Responsibility
Through this policy on responsible lending, we educate our customers that these loans are meant to provide you with short-term financing to solve immediate cash needs and should not be considered a long-term solution.
Collection Policies and Practices
Our collection agents will collect past due accounts in a professional, fair and lawful manner. Upon Default, the following are examples of things that may occur:
1. Contact with you may be attempted through all provided means including active phone numbers for all account holders, references, letters and emails.
2. Repossession of the collateral at issue in the transaction.
3. Litigation to recover balance in full in which debtor will be responsible for all associated costs and fees including attorneys’ fees.
The term of the pawn transaction is up to 120 days. In the event that the redemption premium is not received on the 30th day, the account will automatically renew into another 30-day term acquiring additional fees to automatically accrue on the account until the balance is paid in full. If you are unable to pay the account in full, the minimum payment of the interest accrued can be paid to renew the term and avoid further collection.
Panhandle Title does not report any information about your account to credit bureaus. Late payments, missed payments, or default on your account will not be reflected on your credit score. Panhandle Title will repossess any collateral in the event of a default.