Auto-title lenders peel into Ohio
Posted August 20, 2013 in Press Releases
The Plain Dealer's Sheryl Harris tells readers to "Prepare for the invasion of the title snatchers." She's got it right.
Ohio’s reputation as a state that greets predatory lending with a yawn has encouraged TMX Finance, the nation’s largest auto-title lender, to expand into Ohio.
Auto title loans are the first-cousins of payday loans, which the state officially outlawed in 2008 but has unofficially allowed to go unchecked ever since.
Like payday loans, auto title loans are meant for people who are broke but who own their cars outright. Both types of short-term loans carry triple-digit interest rates. But instead of borrowing against their next paycheck, consumers pledge their cars.
Loan amounts are bigger