Driving Borrowers to Financial Ruin
Like payday loans, car title loans are marketed as small emergency loans, but in reality these loans trap borrowers in a cycle of debt. A typical car title loan has a triple-digit annual interest rate, requires repayment within one month, and is made for much less than the value of the car. Car title loans put at high risk an asset that is essential to the well-being of working families -- their vehicle.
Title lenders have made generous campaign contributions, and industry-friendly laws have passed in some states at breakneck speed. In other states, title lenders have sought to hide the true nature of their products in order to exploit loopholes in existing laws -- pretending, for example, that their abusive loans are "sales and leasebacks," "pawns," or "motor vehicle equity lines of credit."
Briefs & Factsheets
Auto Title Loans and the Law
A short-term title loan can
seem like a good option, but the effects can be devastating. More >
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Reports & Papers
Driving Borrowers to Financial Ruin
Car title loans put at high risk an asset that is essential to the well-being of working families: their vehicle. More >
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Policy Recommendations
Joint Letter to Lousiana Legislators
A consortium of groups opposes several car title lending bills. More > |
