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Consumer Credit Regulation: 12.2.4.10 Florida

In Florida, auto title lending is authorized by the Florida Title Loan Act.,73 Interest rates are capped at 30% per year on the first $2,000, 24% per year on the principal amount exceeding $2,000, and 18% per year on the remainder.74 The statute provides that the principal to which these rates apply is the amount financed as defined by the federal Truth in Lending Act.75 The effect of this provision is to prevent a lender from evading the interest rate c

Consumer Credit Regulation: 12.2.4.11 Georgia

In Georgia, auto title lending is authorized by the state’s pawnbroker statute.81 Pawnbrokers are not allowed to enter into vehicle leaseback arrangements with a pledgor.82 The law allows pawnbrokers to charge a maximum interest rate of 25% of the principal amount advanced for each thirty-day period during the first ninety days of any pawn transaction, and 12.5% for each thirty-day period if the transaction is continued or extended beyond ninety days.

Consumer Credit Regulation: 12.2.4.14 Illinois

In Illinois, “title-secured lending” was formerly authorized by statute96 without any interest rate cap.97 However, effective March 23, 2021, the legislature imposed an all-inclusive 36% APR cap, calculated pursuant to the Military Lending Act, on title loans in the state.98 This revision to the state’s laws effectively bans title

Consumer Credit Regulation: 12.2.4.16 Iowa

In Iowa, auto title lending is authorized,105 but lenders are limited to charging an interest rate of 21% per year.106 Consumers are entitled to a refund of any amounts paid in excess of the statutorily allowed amount,107 and may recover the excess amount either from the person who made the excess charge or that person’s assignee.108 In addition, if a creditor contracts for or receives a finance charg

Consumer Credit Regulation: 12.2.4.17 Kansas

Kansas does not have an auto title lending statute and its pawn statute does not explicitly include auto title loans. For applicable state regulation, see Appendix D, infra. Specifically, Kansas auto title loans are often regulated under the state’s open-end credit statutes that have no usury cap.112

Consumer Credit Regulation: 12.2.4.18 Kentucky

Auto title lending is authorized by statute in Kentucky.113 Title loan agreements are limited to thirty days in duration114 and may be renewed for additional thirty days periods of time; however, the agreements cannot be renewed, rolled over, or consolidated more than three times in succession.115 Lenders are prohibited from lending more than $4,000.116 Interest rates

Consumer Credit Regulation: 12.2.4.24 Minnesota

In Minnesota, auto title lending is characterized by statute as a pawn transaction.122 Pawnbrokers can charge 3% interest per month not including a reasonable storage and services charge that cannot exceed $20 if the pawnbroker only has a title and not the vehicle in its possession.123 Pawnbrokers are required to obtain a license as a used motor vehicle dealer.124 Pawnbrokers are also required to verify that the pawned vehicles do not have any lien

Consumer Credit Regulation: 12.2.4.25 Mississippi

In Mississippi, auto title lending is authorized by the state’s Title Pledge Act.128 Lenders are permitted to charge a “title pledge service charge” of 25% per month (300% per year).129 Auto title loans mature thirty days from the date of the transaction130 and may be rolled over for additional thirty-day periods.131 Beginning with the first rollover, the borrower is required to reduce the principal a

Consumer Credit Regulation: 12.2.4.26 Missouri

Auto title lending is authorized in Missouri.135 Title loan agreements must be at least thirty days in duration.136 Loan rollovers are permitted.137 However, beginning with the third loan rollover, and any subsequent renewals, the borrower is required to reduce the principal by 10% until the loan is fully repaid.138 Lenders are permitted to charge any interest rate agreed to by the parties.

Consumer Credit Regulation: 12.2.4.29 Nevada

In Nevada, auto title lending is authorized by statute.142 Loan agreements are generally limited to thirty days and up to six rollovers are permitted also for thirty days.143 However, loan agreements may extend up to 210 days if: the loan is repaid in installments; the payments fully amortize; the loan is not subject to any extension; the loan does not require a balloon payment; and the loan is not a deferred deposit loan.144 Lenders are prohibited

Consumer Credit Regulation: 12.2.4.30 New Hampshire

Auto title lending is authorized in New Hampshire.148 The original loan term cannot exceed one month.149 Lenders are permitted to roll loans over up to nine times, provided that, at each renewal, the borrower pays at least 10% of the loan’s original principal balance, in additional to any finance charges owed.150 If the borrower cannot do so, the lender can either (1) declare the loan in default or (2) allow the loan to be renewed, but with a reduc

Consumer Credit Regulation: 12.2.4.32 New Mexico

New Mexico does not have an auto title lending statute and its pawn statute does not reference auto title loans. Until January 1, 2018, its small loan act, applicable to loans up to $10,000, payable in at least four installments over at least 120 days,158 did not cap interest rates.