What a title loan costs — before North Carolina’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 North Carolina
- Rate cap
- Consumer Finance Act tiered caps (N.C.G.S. Chapter 53, Article 15); roughly 30%/24%/18% tiers for licensed lenders and 18% for unlicensed lenders.
- Key law
- North Carolina Consumer Finance Act, N.C. Gen. Stat. Chapter 53, Article 15.
- Enforcement
- Enforced by the NC Attorney General and Commissioner of Banks. The state has litigated against out-of-state title lenders (e.g., the Auto Money Title Loans matter) making triple-digit loans to residents.
North Carolina prohibits car title loans under its Consumer Finance Act, capping licensed consumer lenders well below triple-digit title-loan APRs.
What it means for a North Carolina borrower
Auto title loans are illegal in North Carolina, whether made in a store or online. If an out-of-state lender gives you a title loan, the interest terms are unenforceable under North Carolina law and the state may pursue the lender.
If you already have a title loan in North Carolina
A loan that violates North Carolina’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 North Carolina — many high-cost online lenders are not.
- Revoke ACH authorization in writing to stop automatic withdrawals from your account.
- File a complaint with the North Carolina attorney general and the CFPB.
- Ask whether the balance is even collectable under North Carolina law before you pay a collector.
Cheaper first — try these before a title loan in North Carolina
Title Loans and tribal lenders in North Carolina
Many online lenders that market title loans to North Carolina 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 North Carolina residents and how state law applies to them, see the North Carolina tribal-lending page.
Tribal loans in North Carolina →Frequently asked questions
Are title loans legal in North Carolina?
In North Carolina, 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 North Carolina?
Consumer Finance Act tiered caps (N.C.G.S. Chapter 53, Article 15); roughly 30%/24%/18% tiers for licensed lenders and 18% for unlicensed lenders.
What can I do about a title loan I already have in North Carolina?
Because North Carolina 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 North Carolina — many high-cost online lenders are not. This is general information, not legal advice.