States Need to Protect Borrowers from Car Title Lenders
A report by the Tennessee Department of Financial Institutions -- which found car title lenders illegally charging rates as high as 360% APR -- shows that the states need to protect borrowers from this predatory business, says the Center for Responsible Lending. Title lenders, who make small loans at extremely high interest rates to people who put up their cars as security, took 17,313 vehicles from Tennessee borrowers in 2004, the report found. More than a quarter of the lenders the department surveyed charged illegal fees, including late fees and fees when the lenders repossessed cars. Some