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The option to obtain a title loan is available in certain states where permissible by state law.
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If the item that is purchased with the credit is not a good or if the amount financed is greater than the cost of acquiring the good, the credit is not excluded from the requirements of part 1041 under § 1041.
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By informing borrowers that they would likely be unable to take out another covered loan for the full amount of their current loan within 30 days of repaying the current loan, the disclosure may help lenders reduce defaults by borrowers who are unable to repay the loan, even in part, without reborrowing.
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