RICHMOND, Va. (AP) -- New data from state regulators shows that car title loans are big business in Virginia.
For years, regulators had no idea how many car title lenders operated in the state, how much interest they charged or how many loans they issued. Now the nearly 380 car title lending locations across Virginia are coming under closer scrutiny.
According to data from the State Corporation Commission for the first full year under state regulation, Virginia car title lenders doled out nearly 128,500 loans in 2011 worth more than $125 million.
Last year about 13 percent of borrowers failed to make a monthly payment on a car title loan for at least 60 days. And nearly 60 percent of the more than 8,300 vehicles repossessed were sold by lenders to recoup outstanding loans.