Title loan legislation pending in Tennessee
Sunday, April 19th, 2009Tennessee lawmakers will be discussing proposed changes to the title loan industry in a house committee on Tuesday. Some of the proposed changes are limiting the administrative fees charged by title lenders with their ultimate goal of capping the interest rates at 36 percent.
Under current state law, title loans are allowed a 30 day repayment term. If the loan is not paid off in 30 days it will automatically roll into a new loan in which the lenders are allowed by the state to charge a 2 percent interest along with an administrative fee.
Supporters of title lending see this as a small price to pay for the ease and convenience of utilizing a title lender. These loans provide an alternative for consumers who are are unable to secure financing from a mainstream financial institution.