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Several out-of-state car title lenders are charging over 400% interest on loans made in Virginia that are secured by family vehicles.  Even though small loans are capped at 36% annual interest under Virginia law, these lenders are exploiting a legal loophole by operating disengeniously under the open-ended credit statute which does not place any cap on interest charged on open-ended, unsecured lines of credit (such as credit cards).

Consumers’ needs are rarely as short-lived as their loan terms (usually only one month), causing interest to mount rapidly. Car title lenders repossess vehicles as early as one day after a payment is late, resulting in the loss of a family’s most valuable asset and often their sole source of transportation. With an estimated 150 car title lenders currently operating in Virginia, we must take measures to limit the predatory nature of their practices. Tennessee gives us warning of what awaits Virginia if we seek to legitimize car title lending rather than limit it.  Their legislation gave car title lenders the legal authority to operate within a framework of loose regulations. This actually encouraged car title lenders to proliferate, and now there over 900 car title lenders in Tennessee, who togther in 2004 repossessed 17,313 cars!  Let’s not let this happen in Virginia.

Help us express to state legislators that consumers deserve basic protections from predation.  Car title loans are secured loans and lenders should not be falsely operating under the open-ended credit statute.  In fact, several lawsuits have already been filed against car title lenders in Virginia alleging illegal practices. Please request that the Virginia General Assembly cap car title loan interest at 36% per annum (APR). Such legislation would not shut the doors of car-title businesses, but rather would require them to conform to the reasonable limits of responsible lending  - something all Virginia consumers deserve!

 SIGN THIS PETITION TO HELP END PREDATORY LENDING IN VIRGINIA!

Your signature shows direct support for capping car title interest at 36% APR!