Don’t get it done, Virginia!

Our neighbor towards the south is weighing legislation that will allow loan providers here to produce car-title loans with triple-digit interest levels to consumers in Maryland as well as other states. This just four months after Virginia loan providers had been prohibited from making loans that are such of state.

Car-title loans, which permit you to borrow secured on the worth of one’s automobile, are such bad discounts that a lot more than 1 / 2 of the states, including Maryland, essentially never let them.

Yet customer defenses are just because strong as the weakest laws in neighboring states. Whether or not one state bans the loans, its residents can drive throughout the state line and borrow at whatever loan terms are permitted here.

In Virginia, car-title loans can charge yearly portion prices in excess of 260 per cent — and that is following the state imposed price caps in a half-hearted attempt at customer security just last year. Read more