RICHMOND, Va. (AP) — State regulatory data show that car title loans remain big business in Virginia.
According to data from the State Corporation Commission, Virginia car title lenders doled out more than 161,500 loans worth about $180 million in 2012.
That's up from the nearly 128,500 loans worth more than $125 million made the year before.
In 2012, about 20 percent of borrowers failed to make a monthly payment on a car title loan for at least 60 days. And about 80 percent of the more than 13,000 vehicles repossessed were sold by lenders to recoup outstanding loans.
Car title lenders were unregulated in Virginia until October 2010. That's when a new law took effect that limited how much the companies can charge, how much they can lend and for how long.