CFPB Car Title Loan Research Exposes Sky-high Levels of Car Repossessions and Extent of the Debt Trap Business Model
The Consumer Financial Protection Bureau (CFPB) today released a research report on car-title lending that underscores earlier independent findings by the Center for Responsible Lending (CRL). Car title loans are high-cost, high-interest loans secured by the title of a vehicle the borrower owns outright. After analyzing millions of records, CFPB found that: One in five borrowers have their vehicles repossessed; 80% of loans are not retired when due; Two-thirds of all lender volume comes from borrowers stuck in seven or more loans. These findings are consistent with research from CRL's State of