Car Title Loans Quiz

4. The Missouri Division of Finance sets limits on the fees that can be charged on a car title loan.

b. CORRECT!

False. The amount charged for a title loan cannot exceed 1.5 percent interest per month plus a fee to defray ordinary costs of operations, however there are no limits set on the additional fees that can be charged, as long as the borrower agrees to pay those fees.

Reference: Missouri Auditors Website. (May, 2001). Division of Finance and Regulation of Instant Loan Industry, Performance Audit, Report No. 2001-36. http://auditor.mo.gov/press/2001-36.htm.