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Title loans trap borrowers in perpetual debt through unaffordable balloon payments, high interest costs, and the threat of repossession, said Jean Ann Fox, ... Title loans are extremely expensive. ...
A car title loan, or simply title loan, is a loan where the borrower provides their car as collateral. If the borrower defaults, then the lender may take possession of the car. This makes the loan less risky for the lender, and may permit the borrower to obtain a lower interest rate than they could....
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Like payday loans, car title loans are marketed as small emergency loans, but in reality these loans trap borrowers in a cycle of debt.
Title lending is one of the lesser-known, high-cost loans now proliferating across the country. ... In Iowa, lenders are offering car title loans with annual rates of more than 300%. ...
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