What a title loan costs — before Illinois’s rules
A title loan is usually a single-payment loan due in 15–30 days at around 25% per month — roughly 300% APR — secured by your vehicle. The defining risk is not the rate but the collateral: miss a payment and the lender can repossess the car, and research finds about one in five borrowers eventually loses the vehicle. Where a state caps rates low, single-payment title lending is not offered and a loan above the cap is generally void.
The law in Illinois
- Rate cap
- 36% all-in APR maximum, calculated using the Military Lending Act’s Military Annual Percentage Rate (MAPR) method, which includes most fees (815 ILCS 123/15-5).
- Key law
- Illinois Predatory Loan Prevention Act (PLPA), 815 ILCS 123/ (effective March 2021).
- Enforcement
- The Illinois Department of Financial and Professional Regulation (IDFPR) enforces the PLPA. Any loan made in violation is null and void, and the lender has no right to collect or retain any principal, fee, interest, or charge.
Under 815 ILCS 123/15-5, no consumer lender may contract for or receive charges exceeding a 36% Military APR; loans exceeding it are null and void, which effectively bans traditional car title lending.
What it means for a Illinois borrower
Illinois effectively ended high-cost car title loans: no lender can charge more than 36% APR (with fees included) on a consumer loan. A title loan at typical 100%+ rates is illegal, and any such loan is void — meaning you would not legally owe the interest or even the principal.
If you already have a title loan in Illinois
A loan that violates Illinois’s ban may be partly or fully unenforceable — which changes your options with the lender and any collector. This is general information, not legal advice.
- Check whether the lender is licensed in Illinois — many high-cost online lenders are not.
- Revoke ACH authorization in writing to stop automatic withdrawals from your account.
- File a complaint with the Illinois attorney general and the CFPB.
- Ask whether the balance is even collectable under Illinois law before you pay a collector.
Cheaper first — try these before a title loan in Illinois
Title Loans and tribal lenders in Illinois
Many online lenders that market title loans to Illinois residents are tribal lenders arguing their sovereignty places them outside state rate caps — a separate legal question this site tracks in depth. For which tribal brands lend to Illinois residents and how state law applies to them, see the Illinois tribal-lending page.
Tribal loans in Illinois →Frequently asked questions
Are title loans legal in Illinois?
In Illinois, a high-cost single-payment title loan is not legally viable. The state’s rate cap or an outright ban makes a ~300% APR title loan void or unavailable, so licensed title lenders do not operate — and a lender that lends anyway is on weak legal footing.
What is the maximum title loan rate in Illinois?
36% all-in APR maximum, calculated using the Military Lending Act’s Military Annual Percentage Rate (MAPR) method, which includes most fees (815 ILCS 123/15-5).
What can I do about a title loan I already have in Illinois?
Because Illinois effectively bans high-cost title loans, a loan that exceeds the state limit may be partly or fully uncollectible. Check whether the lender is licensed in Illinois — many high-cost online lenders are not. This is general information, not legal advice.