Cash title loans were so notorious in 2005 that the Center for Responsible Lending and the Consumer Federation of America published a report entitled “Car Title Lending: Driving Borrowers to Financial Ruin” in April, followed by a survey by the Consumer Federation of America entitled “Driven Into Debt: CFA Car Title Loan Store and Online Survey” in November that confirmed the earlier report. The survey confirmed the report that cash title loans were being used by crooked lenders to trap borrowers into an impossible debt and eventually taking their car. [Read more…]
Cash Title Loan
A cash title loan or car title loan, the correct term for which is simply a title loan, is a loan whereby the collateral and only consideration for granting of which is the resale value of a car owned by the borrower. No other restrictions apply; whether the borrower has a good or bad credit record is not an issue for granting the loan all that matters is that the title to the car is clean, meaning that the car is fully paid for and no other loan is attached to it. [Read more…]
