What a title loan costs — before Pennsylvania’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 Pennsylvania
- Rate cap
- 6% general usury cap for unlicensed lenders; licensed consumer lenders limited to roughly 24% under the Consumer Discount Company Act (CDCA), 7 P.S. 6201 et seq.
- Key law
- Pennsylvania Loan Interest and Protection Law (Act 6) and the Consumer Discount Company Act (CDCA), 7 P.S. 6201 et seq.
- Enforcement
- Aggressively enforced by the Pennsylvania Attorney General. Settlements against out-of-state title lenders have barred title lending to residents and produced millions in restitution and debt cancellation.
Pennsylvania caps unlicensed consumer-loan interest at 6% and licensed CDCA lenders near 24%, and its AG has obtained over $2.2M in restitution against illegal title lenders.
What it means for a Pennsylvania borrower
Auto title loans are illegal in Pennsylvania, including from out-of-state or online lenders. The Attorney General has forced title-loan companies to cancel debts and refund residents, and any title loan made to a Pennsylvanian is unenforceable.
If you already have a title loan in Pennsylvania
A loan that violates Pennsylvania’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 Pennsylvania — many high-cost online lenders are not.
- Revoke ACH authorization in writing to stop automatic withdrawals from your account.
- File a complaint with the Pennsylvania attorney general and the CFPB.
- Ask whether the balance is even collectable under Pennsylvania law before you pay a collector.
Cheaper first — try these before a title loan in Pennsylvania
Title Loans and tribal lenders in Pennsylvania
Many online lenders that market title loans to Pennsylvania 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 Pennsylvania residents and how state law applies to them, see the Pennsylvania tribal-lending page.
Tribal loans in Pennsylvania →Frequently asked questions
Are title loans legal in Pennsylvania?
In Pennsylvania, 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 Pennsylvania?
6% general usury cap for unlicensed lenders; licensed consumer lenders limited to roughly 24% under the Consumer Discount Company Act (CDCA), 7 P.S. 6201 et seq.
What can I do about a title loan I already have in Pennsylvania?
Because Pennsylvania 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 Pennsylvania — many high-cost online lenders are not. This is general information, not legal advice.