Beware of Car Title Loans

Voters in Montana recently approved a measure to limit car title loans to 36 percent interest, from the previous level of up to 400 percent. The decision was a victory for consumer-rights advocates, who believe these loans trap borrowers in a cycle of debt that is difficult to escape. Nevertheless, the Internet continues to be rife with ads for these loans, which are available in 19 states.

Here's what consumers need to know before they offer up their titles for quick cash.

In car title loans, borrowers use their car titles, or "pink slips," as collateral ... Back to article