A title loan is a loan that is made after you give the lender the title to property you own – usually a vehicle. You won’t get the title back until the loan is fully repaid, including any interest and fees.
A title loan might have a lower interest rate than a payday loan, but it is usually much more expensive than some other types of loans (e.g., credit card, line of credit and bank or credit union loan). Title loans often have fees too, adding to the amount you owe.
A title loan is very risky. If it is not fully repaid, or is not repaid on time, the lender might repossess your vehicle. This could mean losing your transportation to work or other places, and losing the value of your vehicle.
Who can I talk to if I have concerns about a title loan provider or a title loan?
Although title loan providers do not need to be licensed in British Columbia, they must still operate in a fair way and in accordance with B.C.'s consumer protection laws.