Hawaii does not use a separate, short-term “title loan” statute like some states. A loan secured by a vehicle should instead be evaluated as a consumer loan under the lender’s actual authority, written agreement, and Hawaii financial-services laws. Verify the lender, review the APR and all fees, and understand the lien and default terms before using a vehicle as collateral.
Last reviewed: August 13, 2026. This page provides general consumer information, not legal advice.
Are car title loans legal in Hawaii?
Hawaii’s statutes do not create a stand-alone “title loan” product with a special short-term title-loan rate or term schedule. A business offering consumer credit secured by a vehicle must use the legal authority that applies to its transaction. Hawaii’s Division of Financial Institutions (DFI) regulates state-licensed financial institutions, including financial services loan companies, and investigates complaints involving institutions within its jurisdiction.
Do not assume that a website’s use of “title loan” means the offer has a special Hawaii exemption or that an out-of-state lender is licensed locally. Check the DFI’s regulated-company resources, identify the contracting lender, and obtain the complete written disclosures before granting a security interest in your car.
Sources: Hawaii Revised Statutes § 412:9-302, the Hawaii DFI, and the DFI consumer-complaint guidance.
Hawaii vehicle-secured loan rules
| Rule | Hawaii requirement or consumer check |
|---|---|
| Separate title-loan statute | Hawaii’s current statutes do not present a separate short-term title-loan chapter. Review the transaction under the lender’s actual licensing and consumer-loan authority. |
| Regulator | The Department of Commerce and Consumer Affairs, Division of Financial Institutions regulates covered Hawaii-chartered and Hawaii-licensed financial institutions and accepts written complaints within its jurisdiction. |
| Simple-interest rate | For a financial services loan company using the authority in HRS § 412:9-302(b), a simple-interest loan may carry a finance charge up to 24% APR, plus charges excluded or excludable from the federal finance-charge calculation. Whether that provision governs a particular offer depends on the transaction and lender. |
| Precomputed-loan rate | HRS § 412:9-302(b)(1) sets a tiered precomputed-loan interest formula and a 48-month maximum term when that formula is used. For a term exceeding 48 months, the cited provision allows up to 24% APR. |
| Maximum loan amount | The cited financial-services-loan-company rate statute does not set a universal vehicle-secured loan amount. The lender’s underwriting, collateral value, ability-to-repay review, and contract determine any offer. |
| Fees and disclosures | Ask for the Truth in Lending disclosures, including APR, finance charge, amount financed, total of payments, payment schedule, late/default charges, and every lien-related or government filing charge before signing. |
| Repossession method | After default, a secured party may use judicial process or proceed without judicial process only if it does so without a breach of the peace. HRS § 490:9-609. |
| Notice, surplus, and redemption | Hawaii UCC Article 9 contains notice-before-disposition, surplus-accounting, and redemption provisions. A borrower should preserve every notice and seek legal advice promptly if a sale or accounting appears incomplete. |
What to check before applying
Because Hawaii does not use a separate title-loan rulebook, the exact written agreement matters. A lender may ask for identification, income information, vehicle registration and title records, insurance information, and documentation about existing liens. Those are lender practices, not an approval guarantee.
Before signing, confirm who will hold the security interest, the APR calculation method, whether interest is simple or precomputed, the payment dates, every fee, the default definition, and how to request a payoff or account statement. Never sign documents with blank payment, rate, fee, or lien fields. Keep a copy of the complete contract and disclosures.
Repossession rights in Hawaii
A lender with a valid security interest may not repossess through a breach of the peace. Hawaii UCC § 490:9-609 allows possession after default through judicial process or without judicial process only when it can be done without breaching the peace. Article 9 also addresses commercially reasonable disposition, notice before disposition, surplus and deficiency accounting, and redemption.
Do not ignore a default or sale notice. Ask for a current payoff, a copy of the security agreement, and details of the planned disposition in writing. Keep proof of payments and communications. If the lender is Hawaii-licensed, submit a written complaint to DFI; for an urgent repossession dispute or a question about your rights, consult an attorney. The official Hawaii UCC Article 9 index identifies the governing default, disposition, and redemption sections.
Alternatives and help in Hawaii
For an essential expense, public-assistance and credit-union options may be less risky than placing a vehicle at stake. These resources are not loan offers.
- Food and cash support: Hawaii DHS Benefit, Employment & Support Services explains SNAP and financial-assistance programs.
- Energy bills: that same DHS resource lists the Hawaii Home Energy Assistance Program (H-HEAP).
- Credit-union small loans: the NCUA’s Payday Alternative Loan materials describe an option some federal credit unions may offer. Confirm availability directly with a Hawaii credit union.
- Institution complaint: read the DFI complaint process and include the agreement, payment history, lender name, and repossession or sale notices.
- Legal assistance: Hawaii residents can contact the Legal Aid Society of Hawaii to ask about available civil legal-help services.
Cities we serve in Hawaii
Hawaii location pages remain subject to the execution plan’s lender-relationship and quality review. This statewide hub is the source for Hawaii’s vehicle-secured lending and Article 9 repossession information until each local destination is individually validated.
Frequently asked questions
Does Hawaii have a special car title-loan law?
Hawaii’s current statutes do not set out a separate short-term title-loan chapter. A vehicle-secured consumer loan must be assessed under the lender’s actual authority, the contract, and the financial-services and secured-transactions laws that apply.
What interest rate can a Hawaii financial services loan company charge?
For a simple-interest loan under HRS § 412:9-302(b), the statute permits a finance charge up to 24% APR, together with certain excluded or excludable charges. The governing rule for a particular offer depends on the transaction and lender.
Can a lender take my vehicle without going to court in Hawaii?
After default, Hawaii UCC § 490:9-609 permits a secured party to proceed without judicial process only if it does so without a breach of the peace. Article 9 also governs notices, sale procedures, and accounting.
How can I complain about a Hawaii-licensed lender?
DFI accepts written complaints about financial institutions within its regulatory jurisdiction. Its guidance explains that it cannot decide private contract disputes or obtain individual monetary relief, so an attorney may also be appropriate for an urgent dispute.
What should I compare before accepting a vehicle-secured loan?
Compare the APR, finance charge, amount financed, total of payments, payment schedule, all fees, collateral and lien terms, default triggers, repossession language, and the identity and licensing status of the contracting lender.
