Title Loans and Lines of Credit

Last updated: March 29, 2016

What Is a Title Loan?

A title loan is a consumer loan in which the borrower allows the lender to place a lien on their vehicle in exchange for a loan amount. When the loan is repaid, the lien is removed. (A lien is a right to keep possession of property belonging to another person until a debt owed by that person is discharged.)

  • However, if the borrower defaults, the lender may repossess the vehicle and sell it to repay the outstanding debt. In Kansas, a title loan is written as an "open-end credit".

How Much Can a Licensed Lender Charge for an "Open-End Credit"?

  • A licensed supervised lender may charge a finance charge at any rate agreed to by the parties for an open end line of credit.


This article is published on KansasMoney.gov. Find more information by contacting these state agencies: