Car title loans are unlawful in North Carolina, but are easily available in states surrounding us. It’s tempting for desperate consumers to just slip across the state line to Virginia or South Carolina and get some quick cash. Some of these companies advertise regularly in the Charlotte and Greensboro TV markets, and it sounds so easy. The reason car title loans are unlawful in North Carolina is because just like “payday loans”, they can be very expensive, and carry big risks. The Federal Trade Commission recently settled claims against two companies operating in Georgia for deceptive marketing of these loans.
If you are considering using your paid for car as collateral for a new loan, read the loan agreement carefully and make sure you understand the interest rate and the terms. You don’t want to lose your car over failure to pay a high interest loan.