Apart from the cap on the interest rate, what are the laws that protect customers from predatory lenders? In Texas, one of the bodies that regulate car title loans is The Consumer Financial Protection Bureau (CFPB).
According to Texas regulations:
Lenders and CABs must have licenses from the state of Texas to provide this type of service.
All loans cannot exceed 180 days, and that includes renewals and rollovers.
Lenders don't have the duty to inform borrowers via a court order about the repossession of their vehicle.
All loan terms must be clearly stated, and information about all fees, interest charges, renewal costs, and terms must be included.
Before signing any agreements, it's crucial to carefully read through all your loan terms to know what to expect and how much money you'll have to repay.