<P> Title loans are not offered in all states . Some states have made them illegal because they are considered a welfare - reducing provision of credit, or predatory lending . Other states, like Montana have begun placing strict regulations on title loans by not allowing the APR to reach above 36%, down from the previous 400% . However, Montana has recently voted against allowing title loans in their state . </P> <P> In 2008, New Hampshire passed a law capping APR at 36% . Some companies claim their average loan amounts to be between $300 and $500, and had to shut down their store fronts in that state, or their business entirely, because their business could not survive on a low APR for low loan amounts . Since then, the law has been reversed and new growth in the title loan industry has emerged, allowing title loan lenders to charge 25% interest a month, or roughly 300% APR . </P> <P> Only 27 states allow title loans in one form or another . These states are Alabama, Arizona, California, Delaware, Florida, Georgia, Idaho, Illinois, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Minnesota, Montana, Nevada, New Hampshire, New Mexico, Oregon, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, and Wisconsin . </P> <P> States continue to vote on legislation allowing or disallowing title loans . Some states have no limit on the APR that title loan companies can charge, while others continue to crack down and push for stricter regulation . Early in 2012, Illinois recently voted to cap APR on title loans at 36%, with other provisions that would limit the title loan industry in the state . The vote did not pass, but voters and politicians in Illinois and other states continue in their convictions to regulate or outlaw title loans . </P>

How do you get out of a title loan