San Antonio, TX asked in Consumer Law and Contracts for Texas

Q: A friend of mine took his car down got a title loan. He lapsed on his bill and they took the car and auctioned.

A friend of mine took his car down got a title loan. He lapsed on his bill and they took the car and auctioned. He is not upset but they sold the car for 6k more than the debt. He brought me the letter and we called. They said it can take 6 months to a year to get the funds. Is there a time frame for them to return the money, 6 months to a year seems crazy.

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1 Lawyer Answer
John Michael Frick
John Michael Frick
  • Frisco, TX
  • Licensed in Texas

A: Ordinarily, title loan companies do not pay any excess proceeds to the defaulting borrower.

Your friend should check the written terms of his title loan to see if it states how long. Generally, if a contract doesn’t state a specific time for performance, a reasonable period of time is inferred.

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