Legal Status by State
Title loan regulations vary significantly across the US. Whether you are looking for car title loans near you or just researching state laws, use this table to find the legal status and governing laws in your state.
| State | Status | Max Loan | Max APR | Governing Law | |
|---|---|---|---|---|---|
| Alabama | Legal | No limit | No rate cap | Ala. Code § 5-19A-1 | |
| Alaska | Prohibited | N/A | N/A | Alaska Stat. § 06.60.010 | |
| Arizona | Legal | No limit | No rate cap | ARS §6-601 et seq. | |
| Arkansas | Prohibited | N/A | N/A | Ark. Const. art. 19, § 13 | |
| California | Restricted | Varies | Capped for small loans | Cal. Fin. Code §22000+ | |
| Colorado | Prohibited | N/A | N/A | Colo. Rev. Stat. § 5-1-101 | |
| Connecticut | Prohibited | N/A | N/A | Conn. Gen. Stat. § 36a-555 | |
| Delaware | Legal | No limit | No cap | 5 Del. C. § 2201 | |
| Florida | Legal | $25,000 | 30% for first $2,000 | FS §537 | |
| Georgia | Legal | Varies | Pawn model | GA Code §7-4-1 | |
| Hawaii | Prohibited | N/A | N/A | HI Rev. Stat. § 480E | |
| Idaho | Legal | No limit | No cap | Idaho Code § 28-46-501 | |
| Illinois | Legal | Varies | 36% APR | 205 ILCS 670 | |
| Indiana | Prohibited | N/A | N/A | Ind. Code § 24-4.5-1-101 | |
| Iowa | Prohibited | N/A | N/A | Iowa Code § 537.1101 | |
| Kansas | Legal | No limit | No cap | Kan. Stat. § 16a-1-101 | |
| Kentucky | Prohibited | N/A | N/A | Ky. Rev. Stat. § 286.4-410 | |
| Louisiana | Legal | No limit | No cap | La. Rev. Stat. § 6:1001 | |
| Maine | Prohibited | N/A | N/A | Me. Rev. Stat. tit. 9-A | |
| Maryland | Prohibited | N/A | N/A | Md. Code, Com. Law § 12-101 | |
| Massachusetts | Prohibited | N/A | N/A | Mass. Gen. Laws ch. 140, § 96 | |
| Michigan | Prohibited | N/A | N/A | Mich. Comp. Laws § 438.31 | |
| Minnesota | Prohibited | N/A | N/A | Minn. Stat. § 47.60 | |
| Mississippi | Legal | $2,500 | 25% per month | Miss. Code § 75-67-401 | |
| Missouri | Legal | $5,000 | No cap | Mo. Rev. Stat. § 367.500 | |
| Montana | Prohibited | N/A | N/A | Mont. Code § 31-1-112 | |
| Nebraska | Prohibited | N/A | N/A | Neb. Rev. Stat. § 45-101 | |
| Nevada | Legal | No limit | No caps | NRS Ch. 604A | |
| New Hampshire | Legal | $10,000 | 36% APR | NH Rev. Stat. § 399-A | |
| New Jersey | Prohibited | N/A | N/A | NJ Consumer Finance Act | |
| New Mexico | Legal | $5,000 | 36% APR | NM Stat. § 58-15-1 | |
| New York | Prohibited | N/A | N/A | NY Banking Law | |
| North Carolina | Prohibited | N/A | N/A | N.C. Gen. Stat. § 24-1 | |
| North Dakota | Prohibited | N/A | N/A | N.D. Cent. Code § 13-03.1 | |
| Ohio | Legal | Varies | 28% APR | Ohio Rev. Code § 1321.35 | |
| Oklahoma | Restricted | Varies | Capped | Okla. Stat. tit. 59, § 1501 | |
| Oregon | Prohibited | N/A | N/A | Or. Rev. Stat. § 725A.010 | |
| Pennsylvania | Prohibited | N/A | N/A | 7 Pa. Stat. § 6201 | |
| Rhode Island | Prohibited | N/A | N/A | R.I. Gen. Laws § 19-14.2 | |
| South Carolina | Legal | No limit | No cap | S.C. Code § 37-3-101 | |
| South Dakota | Legal | No limit | 36% APR | S.D. Codified Laws § 54-4-36 | |
| Tennessee | Legal | N/A | N/A | TN Code §45-15-101 | |
| Texas | Legal | No limit | No cap | Texas Finance Code Ch. 351 | |
| Utah | Legal | No limit | No cap | Utah Code § 7-24-101 | |
| Vermont | Prohibited | N/A | N/A | Vt. Stat. tit. 8, § 2201 | |
| Virginia | Legal | $2,500 | 36% APR | Va. Code § 6.2-2200 | |
| Washington | Prohibited | N/A | N/A | Wash. Rev. Code § 31.04 | |
| West Virginia | Prohibited | N/A | N/A | W. Va. Code § 46A-1-101 | |
| Wisconsin | Legal | $25,000 | No cap | Wis. Stat. § 138.09 | |
| Wyoming | Prohibited | N/A | N/A | Wyo. Stat. § 40-14-101 |
What does "Legal" mean?
In these states, car title lending is explicitly permitted and regulated. Lenders must be licensed and follow state-mandated disclosure rules.
What does "Restricted" mean?
These states allow title loans but place significant caps on interest rates or have unique licensing requirements that limit availability.
What does "Prohibited" mean?
Title loans are illegal or effectively banned in these states through strict usury laws or specific consumer finance statutes.
State-Level Regulatory Frameworks
How Jurisdictional Classification Works
State governments possess primary authority over short-term consumer credit caps. This has led to three distinct regulatory environments across the country. In permissive states (e.g., Arizona, Alabama), car title loans are explicitly carved out of traditional usury limits, allowing triple-digit APRs under specific statutory guidelines.
In hybrid or restricted jurisdictions, lending remains legal but is subject to tight guardrails, such as mandatory amortizing schedules, rollover prohibitions, or a maximum interest rate cap. In prohibited states (e.g., New York, California), standard usury caps or direct bans on high-interest secured consumer loans effectively make traditional car title lending impossible for state-licensed operators.
Federal Backstops & Key Consumer Protections
While individual states dictate localized licensing and interest boundaries, federal statutes provide key baseline protections. The most notable is the Military Lending Act (MLA), which establishes a strict 36% Military Annual Percentage Rate (MAPR) limit. This cap federally protects active-duty military personnel, active Guard or Reserve members, and their dependents from high-cost title loans nationwide, regardless of local state permissions.
Additionally, the federal Truth in Lending Act (TILA) mandates that any licensed lender must clearly disclose key terms—such as the finance charge, total amount financed, and the true APR—before any contract is finalized, ensuring complete mathematical transparency for borrowers.
State Regulations & Compliance FAQ
Can I drive across state lines to get a title loan from a state where it is legal?
While physically possible, securing a loan in a neighboring state is heavily restricted. Lenders generally require the vehicle to be registered in the state where the loan is issued, which necessitates a local driver's license and proof of residence. Additionally, out-of-state lenders must comply with federal debt-collection guidelines and cannot violate the borrower's home state consumer protection laws in many court jurisdictions.
What happens to my title loan contract if I relocate to a state that prohibits them?
Relocating to another state does not void a legally binding credit contract signed in your previous state of residence. The initial terms, interest accruals, and payment schedule remain active under the laws of the state where the loan was executed. However, the physical repossession of the vehicle is governed by the laws of the state where the vehicle is currently located, which can limit the lender's ability to seize the asset without a formal court order.
How do lenders calculate the APR on monthly interest rates?
Under federal Truth in Lending Act (TILA) guidelines, lenders must express interest on an annual basis. If a state statute permits a maximum monthly interest rate of 25%, the nominal annual percentage rate (APR) is calculated by multiplying the monthly rate by 12, resulting in a 300% APR. This does not account for additional processing fees, administrative costs, or monthly compounding, which can push the actual cost of borrowing even higher.
Where can I file a complaint if a lender violates my state's laws?
If you suspect a lender is operating without a local license, charging interest in excess of statutory limits, or engaging in predatory collection tactics, you should file a formal complaint with your State Attorney General's office or the state's financial regulatory authority (e.g., Department of Financial Institutions or Division of Banking). You can also submit a report to the federal Consumer Financial Protection Bureau (CFPB).
*Last reviewed: June 2026. Always verify with your state's financial regulatory body before applying. Laws change frequently.