This form of lending is concerning for three main reasons: Like storefront payday lending,
auto - title lending carries a triple digit APR, has a short payback schedule, and relies
on few underwriting standards; the
loans are often for larger amounts than traditional storefront payday
loans; and
auto - title lending is inherently
problematic because borrowers are using the titles to their automobiles as collateral, risking repossession in the case of default.