Category: Title Loan Laws

21
Sep

Arizona Car Title Loan Lenders in CFPB Trouble

Title Loan Lenders Failed to Disclose APR’s

For car title loan lenders, it’s always been a “best practice” to fully disclose APR’s. It’s not enough to simply advertise car title loan rates! Title loan lenders MUST fully disclose – in layman’s terms – corresponding Annual Percentage Rates [APR].

This is nothing new! TILA has played a dominant role in lending since the beginning of time.

There has not been a single OLA, CFSA, FISCA or state industry conference that failed to address TILA issues since 1998 when I attended my first conference. One lawyer after another has conducted “workshops” imploring all lenders to pay attention to this issue.

So suddenly the CFPB makes an announcement that 5 Arizona car title loan lenders failed to disclose their loan APR’s on their website?

SIMPLY ASTOUNDING! We’re talking about these failures having occurred from July, 2016 onward! CRAZY! Who are these fools?

  • Auto Cash Leasing [founded 1999]
  • Interstate Lending [2005]
  • Oasis Title Loans [2013]
  • Phoenix Title Loans [2013]
  • Presto Auto Loans [2002]

The CFPB accuses these car title loan lenders of advertising a monthly interest rate but failed to state the annual APR.Annother lender is accused of forcing title loan borrowers to multiply the lenders advertised interest rate by 12! [Are you kidding me??]

Start Car Title Loan BusinessTo be fair, these 5 Arizona title loan lenders have not yet been found guilty in a court of law. Nor have they reached a settlement.

But you gotta know even the bureaucrats at the CFPB know how to take a screen shot of a title lender’s website. At least the interns do. Unless they’re kept busy doing other things.

Man, this is “Outer Limits” stuff. Too young to remember the TV show, “Outer Limits?” Too bad… great show!

21
Aug

Utah Car Title Loans: Laws

Utah Title Lending Registration Act Chapter 24

General Provisions 7-24-101 Title.

This chapter is known as the “Title Lending Registration Act.”

7-24-102 Definitions.
As used in this chapter:
(1) “Nationwide database” means the Nationwide Mortgage Licensing System and Registry,
authorized under 12 U.S.C. Sec. 5101 for federal licensing of mortgage loan originators.
(2) “Rollover” means the extension or renewal of the term of a title loan.
(3)
(a) “Title lender” means a person that extends a title loan.
(b) “Title lender” includes a person that:
(i) arranges a title loan on behalf of a title lender;
(ii) acts as an agent for a title lender; or
(iii) assists a title lender in the extension of a title loan.
(4)
(a) “Title loan” means a loan secured by the title to Continue Reading..

08
Mar

Virginia Car Title Loan Business Startup

Here’s the 2014 Virginia car title loan statistics as reported by the Virginia State Corporate Commission. 2014 is the latest available as of today.

Virginia average title loan principal is $1048.00.

There were just over 155,000 Virginia car title loans made.

Average number of Virginia car title loans per borrower was 1.2.

The average APR for Virginia car title loans was 222%.

There were 19,000+ Virginia title loans repossessed (12%. This is much higher than our title loan stores.)

Want to start a title loan business in your State? Begin here: “How to Start a Car Title Loan Business.”

 

Virginia-Title-Loan-Statistics-61-03

Virginia Auto Title Loans Report-61-10-VA State

26
Nov

Virginia Car Title Loan Laws

Virginia Car Title Loans

What is a Virginia car title loan? A car title loan is a short term, high interest loan secured by the borrower’s car title as collateral. If the borrower defaults on the loan, the car title lender has the right to repossess and sell the vehicle. Nearly 150,000 Virginia households reported using an auto title loan last year.

How does a car title loan work? To receive an auto title loan, borrowers are required to provide:

  • a driver’s license or photo identification,
  • a clear vehicle title, the car (to be inspected), and
  • proof of income.

Title loans made to Virginia residents may range from a minimum term of four months to a maximum loan term of one year.

How to Start Title Loan Biz

How to Start Title Loan Biz

The borrower remains sole owner of the car until the point at which the car is legally repossessed.

The loan issued can be no more than half of the market value of the car.

Virginia title loans must have a clear due date and repayment must be in substantially equal monthly installments of principle and interest Interest rates on loans are capped at:

  • 22% per month (264% APR) for that portion of the loan under $700
  • 18% per month (216% APR) for that portion of the loan between $700 and $1400
  • 15% per month (180% APR) for that portion of the loan over $1400

Virginia Car Title Lenders are prohibited from:

  • Making more than one loan at a time per borrower
  • Refinancing, renewing or rolling over loans
  • Electronically debiting of borrower’s deposit account
  • Making loans to members of the military or their direct dependents

Always consult your legal counsel to make certain that you have the latest Virginia car title loan laws, fees, compliance and licensing information

12
Sep

Virginia Title Loan Business

Virginia Title Loan Business

State AG misstates Virginia car title repossessions.

“Nearly 20,000 Virginia car title loan transactions resulted in a repossession last year? Virginia AG Cracks Down on Car Title Loan Companies What a load! Where is the data? It doesn’t exist.

California Title Loan Business Startup

Click to Invest Now!

What’s more likely? Credit unions and banks repossessed 98% of these cars having title loan liens registered against them. Where did this guy get his facts? Who will these car title loan customers rob, borrow, embezzle funds from to meet their emergency financial needs?

Who puts a gun to the head of these car title loan borrowers and forces them to take the money?

Mr. AG, you want to put a stop to car title loans in Virginia? Create JOBS!

Want to start your own car title loan business? Check out or newly updated Manual: “How to Start a Car Title Loan Business.”

20
Aug

Oregon Car Title Loans

Title Loan Business

Title Loan Business

How to Start a Oregon Car Title Loan Business

Oregon car title loan companies are regulated by Oregon Division of Finance and Corporate Securities:
Toll-free: 866-814-9710
Email: dcbs.dfcsmail@state.or.us
Office Hours: Monday-Friday, 8:00 AM – 5:00 PM Pacific Time

Paying too much for your Oregon title loan? Internet lenders are overcharging residents of Oregon.

Here is the most you should pay for a Oregon payday loan or car title title loan.

Loan Amount

Origination Fee + Interest

Total Loan Cost

$100

$13.06

$113.06

$200

$26.12

$226.12

$300

$39.17

$339.17


If your Oregon car title loan cost is higher, your lender is probably unlicensed in Oregon.

In Oregon the legal limits on what can be charged are:

  • A one-time 10 percent loan origination fee, up to a maximum $30, for a new loan.
  • 36 percent interest.*
  • Only two renewals, or “roll overs,” on an existing loan. After two renewals, you must pay the loan amount and interest in full.
  • The payday or title loan must be for at least 31 days and not longer than 60 days.

Payday or title loan lenders must give you a written loan agreement clearly explaining the fees, percentage rate, payment due dates, and what happens if you’re late with your payments or you default.

All payday loan or car title lenders, including those online, must be licensed by the State of Oregon.

*The annual percentage rate (APR) – the total of all interest and fees calculated on an annual basis – will be 153.77 percent if the lender charges the maximum interest rate (36 percent) and the maximum origination fees allowed.

31
Jul

Car Title Loan Business License & Profits

Car Title Loan Business, License & Profits.

Consumers today are in need of quick access to cash without having to jump through hoops. Demand for car title loans continues to increase while “big brother” attempts to put a stop to it. To entrepreneurs on the “outside,” it’s becoming more difficult to start a car title loan business much less operate one without running afoul of the law.

This is an error in perception. Car title loan businesses can be highly profitable. Witness TMX Finance as but one example. Even in a state such as Florida, where the car title loan laws can be a challenge, the creative Team at TMX Finance manage to offer car title loan products. From its Georgia headquarters, TMX Finance operates more than 1,470 stores in 18 states with plans to grow by more than 20 percent each year through 2017.

How to start a title loan business

TMX Finance Car Title

Of course, there are those who question the TMX Finance car title loan product. They rant and rave about the 100%+ APR. But their car title loan customers don’t complain. More and more consumers caught in a financial challenge seek out TMX Finance and the rest of us to solve their emergency.

Yes, there are always a few knucklehead consumers who abuse the product. Be it a loan, a drug, alcohol, sex, chocolate, Coca Cola… someone somewhere is going to misuse our services.

And, of course, there are product and service providers who take advantage of consumers as well. Witness the front page of the Wall Street Journal every day. Banks, hedge funds, car makers, drug companies, and yes LENDERS do stupid things.

Malcolm Gladwell refers to them as “Outliers.”

But does this mean all these loan product offerings should be outlawed? Certainly not. New entries into the lending industry are appearing almost daily. Technology combined with “big data” underwriting are enabling entrepreneurs to offer financial products to consumers at rates that make sense given the circumstance. At the other end of the scale, your local title loan lender/payday loan providers – now called installment loan lenders – still remain. Why? Because they’re needed. Because of DEMAND! Because the solo-store lender can still make a good profit AND serve her neighbors in need.

Typically, a car title loan is 30 days in duration. Borrowers give the title to their cars, RV’s, boats, motorcycles… for a loan ranging from $100 to several thousand dollars. On the due date, the borrower can pay the interest/fee and renew the loan for the amount of the principal. If the borrower defaults on the loan, the lender can repossess and eventually auction the car to get their loan principal back.

What the anti-title loan contingent doesn’t realize is that we don’t want the car. We would rather “work” with our customer and get them back on track. If this means waiving a late fee or helping our title loan customer avoid a series of NSF’s we’re more than willing.

Fees paid by title loan borrowers are generally in the 8% to 20% per month range. Borrow $1000 for 30 days and it will cost you $80 to $200 per month. These fees are clearly and plainly discussed with each car title loan borrower. No one puts a gun to the head of a borrower. And, despite the claims of our adversaries, we don’t hide the fees or use a 6pt font to disclose the fees.

In Florida, the max interest rate on a title loan is 30%. TMX changed the format of its loans, charging borrowers the maximum interest rate, and then typically adding fees for two types of insurance.  One of the policies reimburses InstaLoan if the car (collateral) is damaged. Borrowers who can’t repay their loans must pay fees for a new round of insurance each month to keep their cars.

This Florida lending strategy can achieve an effective annual APR rate of 100+ percent. It enables TMX Finance to continue to serve customers in need. The insurance sold through InstaLoan is provided by Lyndon Southern Insurance Co., a subsidiary of the publicly traded Fortegra Financial Corp.

Do your homework to apply for a car title loan business! Florida title lender applicants seek a license from the Florida Office of Financial Regulation. The lender registers under a statute for for consumer finance companies that offer longer-term installment loans. The title lender law bans the inclusion of insurance with loans. The consumer finance law doesn’t. Our “Car Title Bible” covers each state. If they already exist in your State, you know they’re legal.

How to Start Title Loan Biz

How to Start Title Loan Biz

Bottom line? Car title loan products are in demand. Title loan lenders can make a profit and serve their neighbors without abusing them. Lacking your local car title lender, where does a borrower of a few hundred to a few thousand dollars go? Hopefully, their first stop will not be a gun shop! To learn how to start your own car title loan business in any state, check out our “How to Start a Car Title Loan Bible.”

 

 

27
Jul

Title loans to Military Members-CFPB Letters Issued

Military title loan interest rates: CFPB sends warning letters to lenders regarding military allotment practices.

Military Title Loan Interest Rates Charged.

The CFPB announced that it sent warning letters this month to several companies that sell retail goods to military service members regarding their acceptance of payments made through military allotments. The military discretionary allotment system allows service members to automatically direct a portion of their paychecks to financial institutions or others of their choosing. This includes car title loan lenders. Effective January 1, 2015, Department of Defense rules were changed to prohibit active duty service members from using allotments for the following types of purchases:

  1. Vehicles, such as automobiles, motorcycles and boats
  2. Appliances or household goods, such as furniture, washers and dryers
  3. Electronics, such as laptops, tablets, cell phones and televisions
  4. Other consumer items that are tangible and moveable.
How to Start Title Loan Business

Start a Title Loan Biz

A sample CFPB warning letter advises that the Consumer Financial Protection Act “prohibits unfair, deceptive, and abusive acts and practices in connection with any transaction with a consumer for a consumer financial product or service, or the offering of a consumer financial product or service.” It also includes the following statement:

“According to your website, ————– seems to be offering
active-duty service members the option to repay loans by military allotment even after January 1, 2015, when the Department of Defense prohibited service members from allotting their pay to buy, lease, or rent personal property. We have not determined whether your conduct violates the CFPA, but we urge you to review your practices to ensure that you comply with all relevant laws.”

This notice does not waive the Bureau’s right to take action based on any violations of Federal law, including violations related to the conduct described above.

In December 2014, the CFPB announced the settlement of a lawsuit filed against a retailer selling merchandise online and in retail stores located near military bases that offered financing through retail installment contracts for alleged unlawful debt collection practices. The lawsuit included claims of alleged unfair conduct by the retailer in connection with the acceptance of payments made through allotments. In April 2015, the CFPB announced a settlement with two companies that processed military allotments and were alleged to have charged fees to service members that the companies failed to adequately disclose.

Do you want to get into the car title loan business? Tired of spending hours on Google looking for answers to your question, “How to start a title loan business.” Get our 300+ page startup Manual delivered to your inbox now! Here’s a list of all the chapters we cover: “How to Start a Title Loan Business.”


We offer 2 methods to invest in our “How to Start a Car Title Loan Business:”

  • Immediate download in Adobe Acrobat: $237.00
  • We’ll print and ship it to you: $367.00


25
Jul

How to Start Title Loan Business in Alabama

How to start a Title Loan Business in Alabama

How to Start a Title Loan Business

How to Start a Title Loan Business in Alabama

A common question regarding how to start a car title loan business in Alabama or any other State often begins with title topics. How does a car title loan lender put the loan collateral (the car, motorcycle, RV, boat…) in the lender’s name? How to make certain a title is “clear?” How to make certain the title loan borrower applicant is really the legal owner of the collateral?

Of course, all these questions are answered in our “How to Start a Title Loan Business Manual.” Much of the work we put into our “Manual” is a result of spending many man hours on the DMV websites of all 50 States. And, we’ve learned a LOT about cat title lending as a result of operating our own stores and Internet portfolios. How to start a title loan business

Below, is a list of frequently asked questions regarding “titles” for the State of Alabama.

Alabama Vehicle Title FAQs

What year model motor vehicles does the State of Alabama title?

Where do I apply for an Alabama certificate of title?

What does it cost to make application for Alabama certificate of title?

What documents will I need to make application for Alabama certificate of title?

How long does it take to receive an Alabama title?

My lienholder is currently holding an out of state certificate of title to my vehicle. How can I apply for Alabama certificate of title when I do not have the outstanding certificate of title to surrender?

How do I apply for a replacement title?

I satisfied the lien on my vehicle and received the Alabama certificate of title with the lien released on the certificate of title. However, I subsequently lost the title. Why do I need a lien release in order to apply for a replacement Alabama certificate of title?

What year model motor vehicles does the State of Alabama title?

Every motor vehicle not more than 35 model years old which is domiciled in Alabama and is required to be registered in Alabama is required to have an Alabama certificate of title. Travel trailers and folding and collapsible camping trailers not more than 20 model years old also are required to have an Alabama certificate of title. Manufactured homes not more than 20 model years old are also required to be titled.

ALABAMA TITLE DEFINITIONS: The term motor vehicle shall include every automobile, motorcycle, mobile trailer, semitrailer, truck, truck tractor, trailer and other device that is self-propelled or drawn, in, upon, or by which any person or property is or may be transported or drawn upon a public highway except such as is moved by animal power or used exclusively upon stationary rails or tracks. Every trailer coach and travel trailer manufactured upon a chassis or undercarriage as an integral part thereof drawn by a self-propelled vehicle.

EXCLUSIONS: No Alabama certificate of title shall be obtained for:
(a) A motor vehicle more than 35 model years old or trailer more than 20 model years old.
(b) A vehicle owned by the United States or any agency thereof.
(c) A vehicle owned by a manufacturer or dealer and held for sale, even though incidentally moved on the highway or used for the purpose of testing or demonstration, or a vehicle used by a manufacturer solely for testing.
(d) A vehicle owned by a non-resident of Alabama and not required by law to be registered in Alabama.
(e) A vehicle moved solely by animal power.
(f) An implement of husbandry.
(g) Special mobile equipment.
(h) A pole trailer.
(i) ATVs.
(j) Snowmobiles.
(k) Off road vehicles.
(l) Junked vehicles.
(m) Boats.
(n)Mobile homes, travel trailers, and mobile trailers designated 1989 year models and prior year models.
(o) Utility trailers. A utility trailer is a vehicle without motive power designed to be drawn by a passenger car or pickup truck.
(p) A folding or collapsible camping trailer more than 20 model years old.
(q) A vehicle for which the Alabama license plate issuing official has verified that the current owner or operator is recorded as the owner or operator on a currently effective certificate of title issued by another state and the certificate of title is being held by the recorded lienholder.

Where do I apply for an Alabama certificate of title?

Applications for Alabama certificate of title must be made through a Designated Agent of the Alabama Department of Revenue. Designated Agents include: County License Plate Issuing Officials, all licensed Alabama motor vehicle dealers, and some financial institutions located in Alabama such as banks and credit unions. An application for replacement title can be submitted directly to the Alabama Department of Revenue by the recorded owner(s) or lienholder.

What does it cost to make application for Alabama certificate of title?
The title application fee is $15.00 for each application for Alabama certificate of title for a motor vehicle. The title application fee is $20.00 for each application for Alabama certificate of title for a manufactured home. Designated agents shall add the sum of $1.50 as the commission for each application processed. County License Plate Issuing Officials may also collect an additional $1.50 commission for each application processed to defray the cost of processing and mailing title applications. Certain counties may also have local fees which are due when an application for title is processed by that County License Plate Issuing Official. Please contact the County License Plate Issuing Official to determine if any local fees apply.

What documents will I need to make application for Alabama certificate of title?

An applicant for Alabama certificate of title must surrender the following documents to the designated agent in order to complete an application for Alabama certificate of title: (a) the outstanding manufacturer’s certificate of origin or certificate of title that is either in the applicant’s name or assigned to the applicant and any documents which support the transfer of the vehicle to the applicant; (b) if the vehicle is currently registered in a jurisdiction which does not title such vehicles, the applicant must surrender the outstanding registration documents which substantiate ownership of the vehicle. Additional documentation may be required if it cannot be determined whether the vehicle meets federal and state safety, emmissions and anti-theft standards.

How long does it take to receive an Alabama title?

Processing times may vary. If you have not received your Alabama title within a reasonable time period, please contact the Designated Agent that completed your title application for assistance. If the Designated Agent cannot provide assistance, you may contact the Title Section at titles@revenue.alabama.gov.

My lienholder is currently holding an out of state certificate of title to my vehicle. How can I apply for Alabama certificate of title when I do not have the outstanding certificate of title to surrender?

No certificate of title shall be issued for a vehicle for which the Alabama license plate issuing official has verified that the current owner or operator is listed on a currently effective certificate of title issued by another state and the certificate of title is held by a recorded lienholder.

A vehicle normally subject to the Alabama title law would be required to registered without obtaining an Alabama certificate of title first if all of the following requirements are met:
The registrant is listed as the owner or operator on the out-of-state title.
There is a lien recorded on the out-of-state certificate of title.
The title is being physically held by the lienholder and the title was not issued by one of the states listed below.
The vehicle’s owner must provide to the county licensing official a copy of the certificate of title or a print out of the title record from the state if it issues the title in electronic format.

The following is a list of states that sends the valid original title to the owner and not to the lienholder.

Applicants from these states must surrender the out-of-state title to the license plate issuing official and their vehicles will be required to be titled in the State of Alabama:
Kentucky
Maryland
Michigan (unless owner authorizes title to be mailed to lienholder)
Minnesota
Missouri
Montana (unless owner authorizes the mailing with signature)
New Jersey
New York
Oklahoma
South Dakota (unless owner indicates that title is to be mailed to lienholder)
Wisconsin
Wyoming (title may be mailed to either the owner or lienholder as requested)
If the owner has requested that a Michigan, Montana, South Dakota or Wyoming title be mailed to the lienholder, the owner must provide documentation from that state that title was mailed to the lienholder in order to be exempt from titling the vehicle in the State of Alabama.

How do I apply for a replacement title?

An application for replacement title can be submitted directly to the Alabama Department of Revenue by the recorded owner(s) or lienholder. The application fee is $15.00, non-refundable. In addition, an application for replacement title can be processed by any designated agent.
I satisfied the lien on my vehicle and received the Alabama certificate of title with the lien released on the certificate of title. However, I subsequently lost the title. Why do I need a lien release in order to apply for a replacement Alabama certificate of title?

At the time that the lien was released the Department was not notified of this fact. Therefore, when the Alabama certificate of title was lost so was the lien release.

16
Jul

Start Title Loan Business-California

Start Title Loan Business in California

You’re considering a title loan business startup? Get our “bible” and you can stop with the “Googling” and finally launch your new title loan business. Start a Title Loan Business

California Title Loan Business Startup“Title loan lenders are utilizing a section of the California Finance Lenders Law that permits virtually unlimited interest rates for certain secured loans higher than $2,500. In this case, car title lenders focused on sections 22303 and 22304 of the California Finance Lenders Law, the state’s grab bag for regulating small-scale lenders.”

NOTE: Broken links occur! Government web sites often move links!! Work your way around this from the home page.

California Title Loan Business Startup & Laws

California Department of Business Oversight

California Financial Lenders License

California Department Financial Institutions

California Department Motor Vehicles

California Industry Publications

CALIFORNIA FINANCIAL CODE

Car title loans – often called “pink slip loans” – made in California in which the consumer is allowed to drive their automobile should be made in amounts of $2501 and above. If you plan to loan 70% or less of the WHOLESALE Kelly Bluebook value, then the minimum wholesale value would be $3573.00.

Q: What licenses are available in California?

There are two state lending licenses for offering title loans. Loans made under the Autopawn Loan program are made pursuant to a California Pawnbrokers License and loans made under the Consumer Loan Program are made pursuant to a California Finance Lenders License.

Q: How much can a consumer borrow?

A: Generally you loan a percentage of the wholesale value of the vehicle, and take various factors into consideration such as the year, make, model, mileage, and condition of the vehicle. If the consumer would like to keep the car and drive it, you will also consider their debt to income ratio as well as their ability to repay the loan and make the monthly payments.

Q: What if the car is not paid off?

A: To make a title loan, the car must be paid off – or almost paid off. For example, if the consumer owes less than 25% of the wholesale value of the vehicle, the consumer may still qualify for a loan.

Q: What if the consumer has lost their title?

A: That’s OK, you can still approve the consumer for a title loan even if they do not have the Title. However, it must be a California registered vehicle, it must be paid off, and they must be the registered owner of the vehicle.

Q: What if the vehicle is not registered in the title loan applicant’s name?

A: If the consumer has the title to the vehicle and it was signed off properly by the previous owner, the consumer is still eligible for a title loan.

Q: What if it is an out of state title?

A: Generally the consumer is still eligible for a car title loan with an out of state title as long as the vehicle is paid off and the name of the consumer appears on the title as the registered owner of the vehicle.

Regarding car title loans, the loans are governed by the California Finance Lenders Law.

The law, part of the state Financial Code, applies to secured loans of relatively small amounts that are not regulated by other statutes.

The loans do not fall under California’s loose definition of predatory lending, which applies primarily to loans that are false or misleading.

Usury laws are not a factor. According to the state attorney general’s office, these laws aren’t applicable to lending institutions such as banks, pawnbrokers and other finance companies.

The lenders are utilizing a section of the California Finance Lenders Law that permits virtually unlimited interest rates for certain secured loans higher than $2,500. In this case, car title lenders focused on sections 22303 and 22304 of the California Finance Lenders Law, the state’s grab bag for regulating small-scale lenders.

The first section lays out rules for interest rates charged by licensed lenders. The second stipulates that these rules don’t apply to any loan worth more than $2,500.

“We spoke to lawyers about this,” said Gladstone at Growth Resource Group, based in San Juan Capistrano. “They determined that this allows us to charge any interest rate the market will bear for loans over $2,500.”

He says his firm was the first to offer car-title loans in California in 1995. Competitors soon showed up, Gladstone says, creating a robust market in which interest rates can vary from 60 percent to 120 percent.

He estimates the size of the California car title loan market at about $20 million. It’s limited, Gladstone says, because lenders in this state must offer larger loans than elsewhere to be profitable, which requires customers in turn to own vehicles of commensurate value.

In other states, where car title loans are typically for under $1,000, it’s common for junkers to be used as collateral.

Gladstone acknowledges that he operates in a gray area of the law. But he believes he’s done nothing wrong. “The proper interpretation of the Financial Code,” he said, “is that if they don’t prohibit it, it must be legal.”

Dimitry Pertsovsky and Michael Sklyar ran a string of Bay Area pawn shops before deciding to get into the lucrative field of high-interest car- title loans. They said their firm, BSL Financial Services in Redwood City, now has about $2 million in active loans. Typically, the car title loans are made without credit checks.

In California, lenders say, the average car-title loan is for $4,000.