Title Loans in Pennsylvania

Pennsylvania regulators have spent more than a decade chasing title lenders that tried to reach residents online or from storefronts across the state line, and the cases have run into the tens of millions of dollars. If you are researching title loans in Pennsylvania, the answer is that they are effectively prohibited. Pennsylvania limits interest on most consumer loans to 6% a year unless the lender is licensed, and even licensed consumer discount companies are held to rates far below what title lenders charge. In this guide from Auto Cash Title Loans, we explain the laws involved, the enforcement record, and safer places to turn when you need money.

Are title loans legal in Pennsylvania?

No, not at the rates title lenders charge. Pennsylvania has no license for car title lending. The Pennsylvania Office of Attorney General has described title loans as effectively prohibited under the Commonwealth’s usury and racketeering laws, because title lenders generally charge far above the 6% to 24% annual limits that apply to consumer lending here.

Pennsylvania’s Department of Banking and Securities (DoBS) has also warned consumers about unlicensed auto title loan schemes, issuing cease-and-desist orders against companies that were not licensed under the Consumer Discount Company Act or the Pawnbrokers License Act.

The governing law: LIPL and the Consumer Discount Company Act

Two laws work together to keep high-cost title loans out of Pennsylvania:

• Loan Interest and Protection Law (LIPL): Sets a general 6% annual interest cap on consumer loans of $50,000 or less made by lenders that are not otherwise licensed or exempt.
• Consumer Discount Company Act (CDCA): Allows lenders licensed by DoBS to charge more than 6% on smaller loans, but within limits. As the Pennsylvania Supreme Court has summarized it, a CDCA-licensed lender can charge between 6% and 24% on loans under $25,000, while an unlicensed lender is bound by the LIPL’s 6% cap.

The Department has issued guidance on internet and out-of-state lending under the CDCA, and its enforcement actions have targeted lenders based outside Pennsylvania that made loans to Pennsylvania residents.

Why title lenders don’t operate in Pennsylvania

A title lender cannot make money at 6% to 24% a year. According to the CFPB, a typical single-payment title loan charges about 25% of the loan amount every month, roughly 300% APR, and around one in five single-payment loan sequences ends with the borrower’s car being repossessed.

Lenders that tried anyway have faced serious consequences:

• TitleMax: In June 2024, DoBS issued an order to show cause alleging that TitleMax affiliates charged rates as high as 720% on more than 5,270 loans to Pennsylvania residents between 2008 and 2017, seeking civil penalties reported at more than $52 million plus restitution. TitleMax has contested the Department’s jurisdiction, and that litigation was still moving through the Pennsylvania courts in 2026. A federal appeals court ruled in 2022 that Pennsylvania may investigate and apply its usury laws to TitleMax.
• CashPoint: A Commonwealth court found that CashPoint and its owner made more than 3,200 car title loans to Pennsylvanians between 2013 and 2018, most above 200% APR. The Attorney General has announced settlements with CashPoint and another lender that resulted in debt cancellation for thousands of Pennsylvanians.

If you live near a border, you may see title stores in neighboring states. Read our Ohio title loan guide before crossing state lines, and remember that Pennsylvania has pursued out-of-state lenders that made loans to its residents.

Legitimate alternatives for Pennsylvania borrowers

Pennsylvania’s strict limits protect you from triple-digit loans, but you still need a realistic option when a bill cannot wait:

• Credit union payday alternative loans (PALs): Federal credit unions can offer PALs from $200 to $2,000, with APR capped at 28% and an application fee no higher than $20.
• Licensed consumer discount companies: A CDCA licensee can make small installment loans within the Act’s limits. Ask for the APR and total cost in writing.
• Local assistance: Calling 2-1-1 can connect you with help for utilities, rent and food. Many Pennsylvania utilities offer hardship programs and payment arrangements.
• Bank or credit union small-dollar loans: Some banks offer small installment loans to existing customers at rates well below title loan pricing.

Our guide to title loan alternatives walks through each option, and our title loan interest rates explainer shows how much a typical title loan really costs.

How to spot an illegal or out-of-state title lender

DoBS has warned that unlicensed title lenders often reach Pennsylvanians online, by phone or through social media. Warning signs include:

• The lender quotes a monthly fee rather than an APR, or the APR is in the triple digits.
• You are asked to mail or upload your car title or allow a GPS tracker or starter-interrupt device.
• The company cannot give you a Pennsylvania CDCA license number, or claims Pennsylvania law does not apply because it is based in another state.
• Payments are taken by debit card or bank draft before you have received written loan terms.

Check any lender’s license with the Pennsylvania Department of Banking and Securities or on NMLS Consumer Access. DoBS accepts complaints online or at 1-800-PA-BANKS (800-722-2657). Our page on title loan borrower rights covers what to do if a lender threatens repossession.

Title loans in Pennsylvania’s major cities

Pennsylvania’s Loan Interest and Protection Law and Consumer Discount Company Act apply in every city, so title loans are effectively prohibited in Philadelphia and Pittsburgh alike. No city licenses title lenders, and the Department of Banking and Securities and Attorney General have pursued out-of-state lenders that made loans to Pennsylvanians.

• Philadelphia: Delaware, a short drive south, licenses title lenders, while New Jersey across the river does not allow title loan pricing. Read our Delaware and New Jersey guides before crossing a state line. Community Legal Services of Philadelphia offers free civil legal help to eligible low-income residents.
• Pittsburgh: Western Pennsylvania is close to Ohio and West Virginia. West Virginia does not permit title loans, and Ohio sets its own rules, so check our Ohio guide rather than assuming a loan there is safe.
• Allentown and Bethlehem: Lehigh Valley borrowers often see online title ads. A company that cannot give you a Pennsylvania CDCA license number, or asks you to upload your title, fits the pattern DoBS has warned about.
• Erie: Erie sits between Ohio and New York. New York does not allow high-cost title lending, Ohio sets its own rules, and Pennsylvania’s limits still apply to any lender that targets Erie residents.
• Reading and Scranton: If you already took a title loan from an unlicensed lender, keep every document. Past Pennsylvania enforcement actions have led to canceled balances for borrowers.
• Harrisburg: The capital is home to the Department of Banking and Securities, which takes complaints online or at 1-800-PA-BANKS.

Frequently asked questions

Can I get a title loan online in Pennsylvania?

Not legally at typical title loan rates. Online lenders that charge Pennsylvania residents more than the LIPL or CDCA allows, without a Pennsylvania license, have faced cease-and-desist orders, penalties and court-ordered debt cancellation.

What is the interest rate cap in Pennsylvania?

For unlicensed lenders, the LIPL generally caps interest at 6% a year on loans of $50,000 or less. CDCA-licensed lenders may charge more on smaller loans, which the Pennsylvania Supreme Court has summarized as between 6% and 24% on loans under $25,000.

Is TitleMax allowed in Pennsylvania?

Pennsylvania does not license car title lending. The Department of Banking and Securities brought an enforcement action over past loans to Pennsylvania residents, and TitleMax was still contesting that case in 2026.

Can a pawnshop in Pennsylvania lend against my car title?

DoBS has named the Pawnbrokers License Act alongside the CDCA when acting against unlicensed title schemes, so do not assume a business calling itself a pawn or title shop is authorized. Verify its license first.

I already took out a title loan from an unlicensed lender. What now?

Save all documents and payment records and file a complaint with DoBS or the Attorney General’s Bureau of Consumer Protection. Past enforcement actions have led to refunds and canceled balances for Pennsylvania borrowers.

Laws and court decisions change, so always check the current rules with the Department of Banking and Securities before you borrow.

Sources

• Pennsylvania Department of Banking and Securities
• DoBS Order to Show Cause, TitleMax (June 2024)
• Pennsylvania Office of Attorney General: title lender Assurance of Voluntary Compliance (Jan. 2024)
• delcode.delaware.gov
• clsphila.org

Last reviewed: October 2026.