Earlier in the day this Maryland Attorney General Brian E. Frosh announced charges brought by his Consumer Protection Division against a title loan firm month. Frosh alleged that the name loan business issued unlicensed and title that is usurious in Maryland, causing economic problems for susceptible Maryland residents while placing them at an increased risk for repossession.
A name loan is really a short-term loan that typically carries a higher rate of interest and needs the debtor to provide the title up for their car as security. The name loan company under consideration ended up being purported to make loans to customers, maintaining the titles with their cars in the event of standard. The title loan company would repossess and sell the vehicle if a borrower failed to make a monthly payment.