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Written by Sara Routhier
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Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He also has an MBA from the University of South Florida. ...

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Reviewed by Joel Ohman
Founder, CFP® Joel Ohman

UPDATED: Mar 22, 2022

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Car title loan laws can change quickly. Even more confusing is that counties, cities, and towns can develop their own ways of regulating car title loan lending within their jurisdictions.

In order to look at how differently each state regulates car title loans, we compiled links to each state’s laws concerning auto title financing and briefly summarized some of the key points that consumers should be aware of. Whether you’re making a monthly payment or own your car outright, these laws can affect the way you buy a car, your timeline expectations, and much more.

Some state laws feature loopholes that allow for car title loan lending to thrive. They allow payday loans that hold the title as collateral with extremely high rates. Other states simply regulate the practice, allowing for the industry to function overtly.

Still other states have implemented laws which make it next to impossible for lenders to turn a profit, effectively preventing payday loans lenders from operating successful practices within their borders.

Are Different Laws in Different States Good for Consumers?

Oklahoma State Representative Mike Ritze believes that it is good that each state regulates their own auto title loan industry. He feels each state’s legislators know the needs of their constituents best. So they can best decide what kind of loan terms and regulations are best for quick cash or other loan types.

“I am always concerned what other states do, especially if it affects Oklahoma, but the Founders wanted the states to be autonomous and competitive with each other though,” he said.

In fact, Ritze wants the federal government to stay out of auto title loan lending, despite the patchwork of laws across the country.

“I do not believe that the federal government should be in the auto title loan industry,” he said. “This should be left up to the states as per the U.S. Constitution in the Enumerated Powers of Article I Sect. 8 and the 10th Amendment.

While the federal government remains uninvolved in auto title loan lending for the time being, the laws of each state will be determined by the pressure that anti short-term loan activists and the auto title loan industry apply to politicians.

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Will Auto Loans Be Federally Regulated in The Future?

The Consumer Financial Protection Bureau and other federal organizations tightly control mortgage loans and credit cards among other things. They require things like loan estimates displaying rates and all fees for mortgage loans. The loans themselves are typically sold off to FNMA or FHLMC, which requires certain protocol be followed.

With the loan proceeds for auto loans, it’s a different story. Keep in mind, lenders are still required to issue loan estimates showing all fees and APR. This is not limited to one type of loan. Generally speaking, though, the federal regulations are not as tight for car loans, and the loan process is much shorter.

To apply for a car title loan, and enter your information above. There are options for just about everyone including those with poor credit or other complications. if you have a low credit score or recent issues like bankruptcy, you can expect to pay a higher rate. Depending on your debt load, some lenders may also offer less in combination with your proven income. The best way to get competitive loan terms is by paying any current loan on time along with other debts, keeping your finances in order, and getting quotes from multiple lenders.

Updated Sept. 2013

State Are Car Title Loans Legal? Maximum Amount to Borrow Costs and Terms Limits Number of Car Title Loan Lenders as of February 2013 Number of Car Title Loan Lenders per Adult Population Law Citation Affirming Car Title Loan Lending
Alabama Yes No Max 25% a month, Not less than 10 days and not more than 31 days. 672 More Than One Lender per 10K Adults Ala. Pawnshop Act (Ala. Code §5-19A-1 et seq.
Alaska No $500 Minimum of 14 days, $5 + the lesser of: $15 per $100 or 15%, Max 36% interest. N/A N/A Alaska Stat. §§ 06.50.010 et seq
Arizona Yes No Max 17% a month for $500 or less, 15% a month for $501-$2,500, 13% a month for $2,501-$5,000, and 10% a month for more than $5,000. 479 More Than One Lender per 10K Adults Motor Vehicle Time Sales Disclosure Act (Ariz. Stat. 44-281 et seq.)
Arkansas No $400 6-31 days max, 17% max interest rate. N/A N/A Ark. Stat. Ann. §23-53-101 et seq
California Yes. Loan must be greater than $2,500.00 to avoid the Small Loan Cap >$2,500.00 Loans made in excess of $2,500 to avoid cap, Up to 31 days if loan is under $2,500, unlimited lifetime if over $2,500, 15%, Max 30%. 281 Less Than One Lender per 20K adults Cal. Financial Code §4970 et seq. and §4973 et seq.( Sections A-2E)
Colorado No A lender shall not lend an amount greater than $500 nor shall the amount financed exceed $500 at any time to a consumer. There shall be no maximum loan term. The minimum loan term shall be six months from the loan transaction date. N/A N/A Colo. Rev. Stat. §5-3.5-101 et seq.(Section 2 para 1-2B)- and §38-40-105
Connecticut No No max $17 per $100; add-on. N/A N/A Conn. Gen. Stat. §36a-746( Specifically 746c) et seq. and §36a-521
Delaware Yes No Max No Cap, Limited to up to 180 days including roll-overs. 56 One Title Lender per 10K-20K Adults Del. Code Tit. 5 §§ 2250 et seq.
Florida No $500 exclusive of the fees Not longer than 31 days and not less than seven days, 30%. N/A N/A Fla. Stat. 560.401 et seq.(560.103-560.144)
Georgia Yes No Max 25% a month for the first three months, 12.5% after that plus lien fee. 30 day limits but can be extended. 375 One Title Lender per 10K-20K Adults Pawnbroker Law (Ga. Code §§ 44-12-130et seq.
Hawaii No $600 No more than 32 days, 14% pre-computed or 24%. N/A N/A Sections 480-2; 480-13 (Specifically 480F-3) Consumer Protections Act
Idaho Yes No Max No Cap, 30 day loan term limit. After third renewal, borrowers must pay 10% of principle each renewal. 108 One Title Lender per 10K-20K Adults Idaho Code Ann. § 28-46-501 to -509 (Specifically 28-46-4-12 {1-4})
Illinois Yes $4,000 or up to 50% of monthly income No Cap, 15 day limit between loans, allowed one renewal if borrower pays 20% of principle. 518 One Title Lender per 10K-20K Adults IL Admin. Code Tit. 38, §§110.300-430 (Specifically 110.370 A-G)
Indiana No 500 or no more than 15% of borrowers gross income 36% interest rate cap, $30 maximum fee, no more than 14 days. N/A N/A Indiana Code24-4.5-7-101 et seq. (Specifically Section 104 1-2)
Iowa No $500 Max 31 days, 21%. N/A N/A Iowa Code Chapter 533D.1 et seq. (Specifically 533D.9.1-3)
Kansas No. Set up as Open Ended credit, since there is no cap rate on Open ended Credit from licensed lenders No Limit Open-ended loans made with between 264 to 360% interest in order to avoid a 36% APR cap on closed-end small lending. 86 Less Than One Lender per 20K adults Kansas Statutes Chapter 16a Article 2 (Specifically 404 1a-c, 2, 3a-b)
Kentucky No $500 14-60 days, 24%. N/A N/A Ky. Rev. Stat. 286.9-010 et seq.
Louisiana Yes >$350.00 Loans are made in excess of $350 and with lifetimes in excess of two months to avoid state restrictions, 36%. 180 One Title Lender per 10K-20K Adults RS 9:3578:1 et seq. (Specifically 9:3578:4)
Maine No No max 0.3%. N/A N/A e. Rev. Stat. Ann. tit 9-A §1-201, Me. Rev. Stat. Ann. tit. 9-A §1-301 and Me. Rev. Stat. Ann. tit. 9-A, §2-401 (specifcally 2A, 7A-C)
Maryland No No max 0.33%. N/A N/A Md. Code Ann. Law II § 12-Com. 301 et seq (spec. 12-306)
Massachusetts No No max 23%+20 admin fee on loan. N/A N/A Mass. Gen. Laws Ann. ch. 140 § 96 et seq.; 209 Mass. Code Regs. § 26.01
Michigan No $600 Max 31 days, 25% plus 5% loan processing fee to a max of $250. N/A N/A 487.2121 et seq. (Specifcally 487.2153)
Minnesota No $350 30 days, 33%. N/A N/A Minn. Stat. § 47.60 et seq
Mississippi Yes $2,500 25% a month, limited to 30 days but allowed to renew if borrower pays 10%. 355 More Than One Lender per 10K Adults Title Pledge Act (Miss. Code §§ 75-67-401 to -449)
Missouri Yes $5,000 No Cap, limited to not less than 30 days. On third renewal, borrower must pay 10% of loan. 343 One Title Lender per 10K-20K Adults Title Loans Law (Mo. Rev. Stat. §367.500-367.533)
Montana No $300 Max 31 days, No cap. N/A N/A Mont. Code 31-1-701 et seq.(spec 31-1-723)
Nebraska No $500 Max 31 days, $15/$100, 24%. N/A N/A Neb. Rev. Stat. 45-901 et seq. (spec. 45-918/919)
Nevada Yes Up to fair market value of vehicle No Cap, 30 day limit, 6 renewals allowed. 197 One Title Lender per 10K-20K Adults Nev. Rev. Stat. § 604A.105; see p.10
New Hampshire Yes $10,000 25% interest per month plus lien fee. Limited to one month for the original term but allowed 10 renewals if borrower pays 10% of loan. 43 Less Than One Lender per 20K adults Pawnbroker/Lender Act (N.H. Rev. Stat.§ 399-A)
New Jersey No No max No limit, 30%. N/A N/A Consumer Loan Act Applies, Rates under  N.J. Stat. Ann. tit. 17:1
New Mexico Yes $2,500 No Cap or term limits. 194 More Than One Lender per 10K Adults New Mexico Small Loan Act N.M. Stat. Ann. §§ 58-15-1 to -38(Spec. 32-38)
New York No No max No limit, 25%. N/A N/A Licensed Lender Law applies, rates under N.Y. Banking Law 340 et seq
North Carolina No No max No limit, 25%. N/A N/A  N.C. Gen. Stat. 53-173
North Dakota No $500 60 days, 30%. N/A N/A ND Cent Code13-08-01 et seq. (spec. 13-08-12 para 2-4)
Ohio No $800 Max 6 months, 28%. N/A N/A Ohio Rev. Code Ann. 1321.35 et seq.
Oklahoma No $500 12-45 days, 30%. N/A N/A Okla. Stat. tit. 59-3101 et seq. (spec 3106 para 1,7,9)
Oregon No $50,000 Max 60 days, No cap. N/A N/A Or. Rev. Stat. Ann. § 725A.101 et seq. (spec 725.340)
Pennsylvania No No max No limit, $9.50 per $100. N/A N/A Loan Interest and Protection Law (“LIPL”), 41 P.S. § 101 et seq
Rhode Island No $500 Min 13 days, 36%. N/A N/A R.I. Gen. Laws §19-14.1-1 et seq.19-14.4-1 et seq (spec. 14.1-2 a/b)
South Carolina Yes. Loan must be greater than $2,500.00 to avoid the Small Loan Cap >$2,500.00 Loans made in excess of $601 in order to avoid a cap. 352 One Title Lender per 10K-20K Adults 34-39-110 et seq.
South Dakota Yes No Limit No Cap, 30 day limit, 4 renewals allowed if borrower pays 10% of loan plus fees and interest. 89 More Than One Lender per 10K Adults S.D. Codified Laws Ann. §§ 54-4-70 to 72 (Subject to provisions of § 57A-9)
Tennessee Yes $2,500 Costs limited to 1/5 of the loan plus 2% interest each month. 835 More Than One Lender per 10K Adults TN Title Pledge Act (§ 45-15-101 to § 45-15-120)
Texas Yes No Limit 10% interest cap, no fee limit. Cannot exceed 180 days. 1776 One Title Lender per 10K-20K Adults Tex Fin. Code tit.5 §§ 393.001-393.628; Tex. Admin. Code tit. 7 §§ 83.1001-83.6008; /Ch. 302, Texas Finance Code; Title 1 Texas Business and Commerce Code
Utah Yes No Limit No cap, Unlimited renewals. 251 More Than One Lender per 10K Adults Title Lend. Reg. Act (Utah Code §§ 7-24-101 et seq.)
Vermont No $0 18%, Payday and Title Loan shops are prohibited from opening in the state. N/A N/A Vt. Stat. Ann. tit. 9 41a
Virginia Yes Up to 50% of fair market value of vehicle 22% per month of outstanding balance up to $700, 18% per month for $701-$1,400, 15% per month for $1,401 or above, lien fees permitted. Limited to equal monthly installments, at least 120 days up to 12 months, no rollovers or renewals allowed. 378 One Title Lender per 10K-20K Adults Code of Virginia Tit. 6.2 Chap. 22
Washington No $1,000 21%, max 31 days. N/A N/A Was. Stat. Leg. 31.45.010 et seq. (spec. 31.45.073 all para’s)
West Virginia No No max No limit, 31%. N/A N/A W. Va. Code § 46A-4-107 and §§ 32A-3-1 et seq
Wisconsin Yes Up to 50% value of vehicle and $25,000 max No cap, Up to 6 month terms allowed. 162 Less Than One Title Lender per 20K Adults Wis. Stat. § 138.16
Wyoming No No max 1 calender month, 36%. N/A N/A Wy. Stat 40-14-362 et seq.