NY AG Announces Agreement To Limit Online Title Lending

State Attorney General Title Loans

On April 1, New York Attorney General (AG) Schneiderman announced that 10 repossession companies agreed to discontinue repossessing vehicles at the request of title loan companies. The AG states that out-of-state or online lenders offer title loans, which he characterizes as a type of payday loan with high interest rates, to New Yorkers without obtaining a New York license, and offer loans in excess of the 16% interest rate cap applicable to unlicensed lenders. In September 2013, the AG settled with five companies that collected debts on allegedly illegal payday loans, part of a broader effort by New York authorities to address alleged usurious online lending.