What a title loan costs — before Virginia’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 Virginia
- Rate cap
- Simple annual interest not to exceed 36%, plus a monthly maintenance fee no greater than the lesser of $15 or 8% of the originally contracted amount. Loans capped at $2,500, with a minimum 6-month and maximum 24-month term. Effective January 1, 2021.
- Key law
- Va. Code Title 6.2, ch. 22 (Motor Vehicle Title Loans), Sec. 6.2-2200 et seq., as amended by the 2020 Fairness in Lending Act (S.B. 421 / H.B. 789).
- Enforcement
- Licensed and supervised by the Virginia State Corporation Commission's Bureau of Financial Institutions; the Office of the Attorney General enforces predatory-lending violations. Before the 2020 reform, the average title-loan rate in Virginia was about 217%.
Virginia's 2020 Fairness in Lending Act (effective Jan 1, 2021) capped motor vehicle title loans at a 36% simple annual rate plus a maintenance fee up to $15 or 8%, down from an average 217% APR.
What it means for a Virginia borrower
Title loans still exist in Virginia but are far less costly than before 2021. The annual interest is capped at 36% plus a small monthly fee, loans max out at $2,500, and terms must run at least six months. The old single-payment loans at 200%+ APR are no longer legal.
If you already have a title loan in Virginia
A loan that violates Virginia’s rate limits 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 Virginia — many high-cost online lenders are not.
- Revoke ACH authorization in writing to stop automatic withdrawals from your account.
- File a complaint with the Virginia attorney general and the CFPB.
- Ask whether the balance is even collectable under Virginia law before you pay a collector.
Cheaper first — try these before a title loan in Virginia
Title Loans and tribal lenders in Virginia
Many online lenders that market title loans to Virginia 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 Virginia residents and how state law applies to them, see the Virginia tribal-lending page.
Tribal loans in Virginia →Frequently asked questions
Are title loans legal in Virginia?
In Virginia, title loans are allowed only under limits — a rate cap, an installment structure, or consumer-finance licensing — so a legal title loan costs less and looks different from the ~300% single-payment norm, and any lender exceeding those limits is out of compliance.
What is the maximum title loan rate in Virginia?
Simple annual interest not to exceed 36%, plus a monthly maintenance fee no greater than the lesser of $15 or 8% of the originally contracted amount. Loans capped at $2,500, with a minimum 6-month and maximum 24-month term. Effective January 1, 2021.
What can I do about a title loan I already have in Virginia?
Because Virginia restricts high-cost title loans, a loan that exceeds the state limit may be partly or fully uncollectible. Check whether the lender is licensed in Virginia — many high-cost online lenders are not. This is general information, not legal advice.