What a title loan costs — before Massachusetts’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 Massachusetts
- Rate cap
- Loans of $6,000 or less charging over 12%/yr require a Small Loan Business license (Mass. Gen. Laws ch. 140, § 96), and charging interest plus expenses aggregating more than 20%/yr is criminal usury, a felony (Mass. Gen. Laws ch. 271, § 49).
- Key law
- Mass. Gen. Laws ch. 140, §§ 96–114A (Small Loan Business) and ch. 271, § 49 (Criminal Usury, 20% aggregate cap).
- Enforcement
- The Massachusetts Division of Banks handles licensing and the Attorney General enforces criminal usury; there is no authorized high-cost title-loan product.
Massachusetts makes it a felony (ch. 271, § 49) to charge more than 20% per annum, counting interest and all fees in aggregate, which alone bars viable title lending.
What it means for a Massachusetts borrower
Massachusetts does not allow high-cost car title loans. A single-payment title loan at 200%+ APR would blow through both the 12% small-loan licensing trigger and the 20% criminal-usury line, exposing the lender to felony liability. Treat any triple-digit-APR title loan offered in MA as illegal.
If you already have a title loan in Massachusetts
A loan that violates Massachusetts’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 Massachusetts — many high-cost online lenders are not.
- Revoke ACH authorization in writing to stop automatic withdrawals from your account.
- File a complaint with the Massachusetts attorney general and the CFPB.
- Ask whether the balance is even collectable under Massachusetts law before you pay a collector.
Cheaper first — try these before a title loan in Massachusetts
Title Loans and tribal lenders in Massachusetts
Many online lenders that market title loans to Massachusetts 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 Massachusetts residents and how state law applies to them, see the Massachusetts tribal-lending page.
Tribal loans in Massachusetts →Frequently asked questions
Are title loans legal in Massachusetts?
In Massachusetts, 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 Massachusetts?
Loans of $6,000 or less charging over 12%/yr require a Small Loan Business license (Mass. Gen. Laws ch. 140, § 96), and charging interest plus expenses aggregating more than 20%/yr is criminal usury, a felony (Mass. Gen. Laws ch. 271, § 49).
What can I do about a title loan I already have in Massachusetts?
Because Massachusetts 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 Massachusetts — many high-cost online lenders are not. This is general information, not legal advice.