There now may be additional avenues to fight Title Loan repossessions.I reported last year that Pennsylvania is finally cracking down on unfair, unlawful Title loans. I get calls about these often high-interest loans very often.
Interest on these loans often runs in excess of 100%. This far exceeds the lawfully allowable rate, and amounts to a usury violation. The interest often runs to 300% to 500%.
There have been a number of Courts that have now agreed that even if a Pennsylvania resident’s loan has been signed outside the state (in Delaware for instance) it is still subject to the PA Usury Statute.
This is very important, because most of these Title loans are offered by companies operating out of locations in Delaware. They all advertise heavily on the Internet.
There are licensing issues as well. The Pennsylvania Department of Banking and Securities and the Pennsylvania Attorney General recently began prosecuting these operations for operating without the required Pennsylvania licenses – even if they do not operate or even have a Pennsylvania location, and all of the paperwork is completed outside Pennsylvania.
The important point is that if you have been roped into one of these loans, and especially if the loan holder is threatening to repossess or has repossessed your vehicle, is threatening to sue or has sued you, then there may be a way to stop them in their tracks – and to recover from them and anyone who assists them.
If you have been roped into a Title loan or have suffered a Title Loan Repossession then you should contact a qualified attorney right away.
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