Another bubble?

Car Title loans have become big business. The car's title is the collateral. The loans can be made for a month up to 2 years. Not only are the loans short-term, the interest rate is astronomical, ranging from 80 percent to more than 500 percent. Many borrowers have to renew the loan; one company is able to renew many loans eight times. The amount of the loan is a function of the car's resale value. Yet, more than 1.1 million households used auto title loans in 2013. About one in every six borrowers who take out title loans have their cars repossessed.