What Are Car Title Loans?
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.
In this short video, Jennifer Johnson of the Center for Responsible Lending explains the reasons why consumers should avoid car title loans and how to reach out for help if you are caught by their trap.