In California and South Carolina title loans, lenders only make loans that are large enough not to trigger rate caps. In Virginia, Iowa and Kansas, lenders claim their loans are open-ended to get around state limits for small loans.

The industry is reportedly pushing for state laws to legalize title loans without rate caps or adequate protections.

CFAs study, Driven into Debt: CFA Car Title Loan Store and Online Survey, documents that lax state laws result in the most abusive loans. Tennessee and Mississippi permit loans up to $2,500 to be due in thirty days. Georgia permits title lenders to keep all the proceeds earned from selling a repossessed car. Online lenders are entering the title loan market, claiming to use the lax regulatory environment in New Mexico or Delaware to market loans nationwide.

Title loans are extremely expensive. Atlanta Title loan stores charge a median 25% per month finance charge which translates to 300% annual interest, plus additional fees average $25 per loan.