Business & Real Estate

State says more borrowers using cars as loan collateral

California’s auto title loan market more than doubled between 2011 and 2014 to 106,373, according to a new report by the state’s Department of Business Oversight.

Auto title loans require borrowers to use their motor vehicles as collateral.

In December, a DBO alert noted that lenders can charge unlimited interest rates on most loans since state law imposes no interest rate restrictions on loans of $2,500 or more. In 2014, 99 percent of all title loans made were for at least $2,500, the DBO said.

DBO said the state’s No. 1 auto title lender was in 2014 was LoanMart.com, with 9,827 loans.

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