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Marylanders can not visit Virginia to get high-cost loans that are car-title

Marylanders can not visit Virginia to get high-cost loans that are car-title

Do not do so, Virginia!

Our neighbor towards the south is weighing legislation that allows loan providers here to create car-title loans with triple-digit interest levels to customers in Maryland along with other states. This just four months after Virginia loan providers were prohibited from making such loans out of state.

Car-title loans, which permit you to borrow on the worthiness of one’s automobile, are such bad discounts that a lot more than 50 % of the states, including Maryland, essentially do not allow them.

Yet customer defenses are merely since strong as the weakest rules in neighboring states. No matter if one state bans the loans, its residents can drive over the continuing state line and borrow at whatever loan terms are permitted here.

In Virginia, car-title loans may charge yearly percentage prices greater than 260 per cent — and that is following the state imposed rate caps in a half-hearted effort at customer protection year that is last.