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Marylanders can not head to Virginia to get high-cost car-title loans

Marylanders can not head to Virginia to get high-cost car-title loans

Never do so, Virginia!

Our neighbor towards the south is weighing legislation that will allow loan providers here in order to make car-title loans with triple-digit interest levels to customers in Maryland and other states. This just four months after Virginia loan providers had been prohibited from making loans that are such of state.

Car-title loans, which enable you to borrow secured on the worthiness of one’s automobile, are such bad discounts that more than 1 / 2 of the states, including Maryland, essentially never let 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 throughout the continuing state line and borrow at whatever loan terms are allowed here.

In Virginia, car-title loans may charge yearly portion prices greater than 260 % — and that is following the state imposed price caps in a half-hearted attempt at customer protection year that is last.