What a title loan costs — before New Jersey’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 New Jersey
- Rate cap
- General consumer loan/criminal-usury ceiling of 30% per annum for individuals (N.J.S.A. 2C:21-19); rates above 50% are a second-degree crime.
- Key law
- New Jersey criminal usury statute, N.J.S.A. 2C:21-19 (Wrongful credit practices); Consumer Loan Act licensing framework.
- Enforcement
- Enforced by the NJ Department of Banking and Insurance and the Attorney General/Division of Consumer Affairs. Knowingly making usurious loans as a business is a second-degree crime carrying fines up to $250,000.
New Jersey caps interest at 30% per annum for individuals under its criminal usury law (N.J.S.A. 2C:21-19), well below typical title-loan APRs.
What it means for a New Jersey borrower
Car title loans are not legal in New Jersey because their triple-digit rates blow past the state's 30% criminal usury limit. No licensed lender can offer them, and out-of-state or online title loans made to New Jersey residents are unenforceable.
If you already have a title loan in New Jersey
A loan that violates New Jersey’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 New Jersey — many high-cost online lenders are not.
- Revoke ACH authorization in writing to stop automatic withdrawals from your account.
- File a complaint with the New Jersey attorney general and the CFPB.
- Ask whether the balance is even collectable under New Jersey law before you pay a collector.
Cheaper first — try these before a title loan in New Jersey
Title Loans and tribal lenders in New Jersey
Many online lenders that market title loans to New Jersey 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 New Jersey residents and how state law applies to them, see the New Jersey tribal-lending page.
Tribal loans in New Jersey →Frequently asked questions
Are title loans legal in New Jersey?
In New Jersey, 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 New Jersey?
General consumer loan/criminal-usury ceiling of 30% per annum for individuals (N.J.S.A. 2C:21-19); rates above 50% are a second-degree crime.
What can I do about a title loan I already have in New Jersey?
Because New Jersey 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 New Jersey — many high-cost online lenders are not. This is general information, not legal advice.