Title Loans, along with PayDay Loans, and the people and companies that offer them, are something close to evil. They are loan sharks with Websites.
As I have reported previously, that Pennsylvania and its Courts have taken the position - overdue - that even if the Title Loans are signed outside Pennsylvania they are still subject to Pennsylvania Usury limits.
Some of you may be unfamiliar with the term Usury. It's a general term that means excessive and unfair interest on a loan. Most states, including Pennsylvania, have various statutes that limit the amount of interest that may be charged on loans generally and on specific types of loans.
The Usury statute in Pennsylvania limits interest on most loans, including Title Loans, at 6% per year. So, any Title Loan, that includes interest that exceeds 6% per year are illegal.
Title loan agreements will list the interest in terms of Annual Percentage Rate or APR. Most Title Loan agreements will list an APR far in excess of 6%. Most Title Loans will list an APR in excess of 300%. But even that is under-reported.
Most Title Loan sharks include all sorts of additional upfront fees and charges. These are really just additional interested charges in sheeps' clothing. So, most Title Loan are real APRs in excess of 500%.
Let's put this into real terms. Let's be concrete. I just accepted a new case involving a Title Loan. This new client took out a Title Loan for $1,700.00. The Title Loan shark charged a listed 300% interest. The Title Loan shark also charged an $83.00 filing fee.
My nice new client repaid in excess of $5000.00, when the Title Loan shark repossessed her vehicle one year later.
You read that correctly. My client repaid more than $5000.00 within the first year of the loan - and the Title Loan shark still repossessed her vehicle.
I don't think any high more detailed description and explanation of Title Loans and Title Loan sharks could illustrate the unfairness and evil of these loans and Title Loan sharks.
If you have been the victim of any form of consumer fraud, or a usurious Title Loan, then you should contact a qualified attorney right away.