Title loan companies open up across the country

Several states throughout the nation are seeing an increase in the number of title loan businesses that are opening up storefronts in order to better serve consumers who need short term lending options. According to the Concord Monitor, the state of New Hampshire is experiencing an uptick in title lenders, as regulations have recently changed. In 2009, a law was passed that capped title loan interest rates at 36 percent, which caused many businesses to close down since they could not operate with such low rates. However, state lawmakers this year changed the amount to 25 percent per month, which equates to approximately 300 percent over 12 months. For this reason, many title lenders have now opened or plan to open offices in New Hampshire. These businesses will offer alternative finance options to consumers who need money for emergency expenses, states the news source. Virginia is another state that is seeing an increase in title lenders, reports The Virginian-Pilot. These companies aim to serve the underbanked population and offer short term loans for necessary expenses. Research by Virginia's State Corporation Commission found that more than 105,000 residents had taken out title loans in 2011.