Car Title News
The latest news on car title loans, auto title loans and the car title lending industry from the Center for Responsible Lending.
- Usury Explosion: Northern Virginia Becomes Hotbed for Car-Title Lending Industry
Connection Newspapers (VA) 27 Nov 2013
Northern Virginia has seen dozens of new car title lending businesses open since the state General Assembly legalized the industry in 2010. The total number of car title businesses has more than doubled from 184 to 395 in that time. "It's a trap, and although it's presented as a loan it's really loan-sharking," insists Virginia Poverty Law Center executive director Jay Speech.
- Ditching Compromise, Parker Pushes Tough Payday Loan Regulations
Hispanic Business 23 Nov 2013
Houston Mayor Annise Parker has thrown out a compromise plan to regulate payday and auto title lenders, instead promoting stricter measures to limit this type of financing. The city council will vote next month on the regulations, modeled on rules passed by other Texas cities that include Dallas, Austin, San Antonio, and El Paso
- Wisconsin's Auto Title Loan Industry Still Thriving
Capital Times (WI) 21 Nov 2013
Fewer Wisconsin residents are losing their cars to repossession, according to data from the state Department of Transportation, provided in response to an open records request from state Rep. Gordon Hintz (D-Oshkosh). The number of auto title transactions between financial institutions and individuals fell to 10,877 last year from 14,442 in 2010; however, the number of transactions involving auto title lenders, specifically, only declined to 2,680 from 2,898.
- The Consumer Perils of a Car Title Loan
Bankrate.com 30 Oct 2013
Lawmakers and financial regulators have put adjustable-rate mortgages and payday loans under a spotlight, while auto title loans have been largely overlooked. Consumers in 21 states depend on the loans when they do not have conventional options, according to consumer advocacy groups, which criticize title loans for their triple-digit interest rates and balloon payments that are due within a month as well as for their threat to repossess borrowers' cars.
- Long Beach City Council Restricts Short-Term Lenders
Long Beach Press-Telegram 19 Sep 2013
The Long Beach (Calif.) City Council has unanimously voted to push consumer-finance lending businesses from neighborhood commercial and other areas into locations that are more automobile-oriented and widen the separation between the businesses from 1,000 feet to 1,320 feet.
- Making Money Off the Poor
New York Times Opinionator 17 Sep 2013
Many different businesses and schemes are making money off of low-income Americans, Tom Edsall writes in a New York Times opinion piece.
- Editorial: Crack Down on Abusive Lending
Cincinnati Enquirer 17 Sep 2013
This Cincinnati Enquirer editorial calls on regulators at the Ohio Department of Commerce "to step in, investigate, and then revoke the licenses of those businesses found to be evading payday lending laws."
- Pricey Car-Title Loans Balloon; State Stands By
Cincinnati Enquirer 04 Sep 2013
Ohio has seen a significant growth in the use of auto title loans, and in the businesses that offer them. Struggling borrowers are paying annual percentage rates of up to 600 percent, and those who cannot make payments are in danger of their vehicles being repossessed.
- High Cost Lenders Have Found a Devious Way to Dodge New Laws
Business Insider (TX) 03 Sep 2013
Several Texas cities have taken action to curb high-cost lending in the state; but many big lenders are finding ways around the laws, such as giving away cash for free in exchange for title to the borrower's car.
- Personal Finance: High-Rate Loans Get Scrutiny
Sacramento Bee 25 Aug 2013
Cash-strapped consumers in California are turning to a growing number of auto title lenders to supply quick cash at high interest rates. Nearly 100 companies with multiple locations are licensed to issue car title loans in the state.
- Military Payday Loan Laws Set for Review, Improvements
Military Times 25 Aug 2013
Consumer protections for troops and their families should be broadened to cover not only payday loans but also products such as overdraft checking, installment loans, and rent-to-own contracts, consumer advocates say.
- Montgomery City Councilmen Seek Moratorium on Payday Lenders
WSFA-12 (AL) 20 Aug 2013
An item on the Montgomery, Ala., city council's agenda could threaten the future of payday and title loan businesses in the city. Councilmen Richard Bollinger and Charles Smith have proposed a temporary freeze on business licenses for these types of lending agencies.
- Auto-Title Lenders Peel Into Ohio
Cleveland Plain Dealer (OH) 16 Aug 2013
TMX Finance, the biggest auto title lender in the country, is expanding into Ohio, where it plans to open 12 outlets. Payday loans were officially banned there in 2008, but the state unofficially allowed the lenders to continue. Car title lending is not specifically sanctioned; but, like with the payday lending industry, there are loopholes that allow them to operate under other statutes.
- New York Scrutinizes Online Lenders
Wall Street Journal 06 Aug 2013
Benjamin Lawsky, superintendent of the New York Department of Financial Services, has issued 35 cease-and-desist orders to online firms that he believes might be dodging state laws prohibiting lenders from charging egregious interest rates.
- Title Lenders Seek Dismissal of Attorney General’s Lawsuit
West Virginia Record 19 Jul 2013
Virginia-based companies that make auto title loans to consumers in West Virginia are moving to dismiss a lawsuit over the practice. West Virginia Attorney General Patrick Morrisey inherited the case -- made against Virginia Auto Loans, Fast Auto Loans, and Community Loans of America -- from former AG Darrell McGraw. On July 9, the defendants in the case -- including Fast Auto Loans and Community Loans of America CEO Robert I. Reich -- filed motions to dismiss.
- Misfit Borrowers Attracting Lenders as Housing Revives
Bloomberg 18 Jul 2013
Raj Date was a key architect of the Consumer Financial Protection Bureau's new rules for U.S. mortgage underwriting. Formerly the regulator's deputy director, he now is putting together a firm that will offer loans to borrowers who have been shut out by the CFPB standards.