Car Title Lending
About this Policy
Everyone should have access to fair and affordable loans. In Illinois, that is not the case. Title loans prey on Illinoisans by charging crippling interest rates as high as 360%.
Car title loans are similar to payday loans, but are secured by the title to the borrower’s automobile – meaning that if the person falls short on payments, the lender can seize and sell their car.
These loans trap consumers in debt they can’t repay, causing thousands every year to lose their car, a critical source of transportation to school and work. From 2013 to 2017, nearly 10% of title loan borrowers had their cars repossessed.
The predatory nature of title loans traps our friends in neighbors in a cycle of debt, often during times of crisis. Learn more about the impact or car title loans by reading Paul’s experience