Michigan does not permit an auto title loan in which the lender takes physical possession of the borrower’s vehicle title. Because this product is prohibited, Michigan law does not set a lawful title-loan APR, amount, or term. Do not surrender a vehicle title for quick cash; compare regulated credit and state emergency-assistance options instead.
Last reviewed: August 12, 2026. This page provides general consumer information, not legal advice.
Is a title loan legal in Michigan?
No, not in the form commonly advertised as an auto title loan. The Michigan Department of Attorney General says an auto title loan where the lender takes physical possession of the borrower’s vehicle title is not permitted under Michigan law. The Department also warns that a lender charging 25% per month, or roughly 300% APR before added fees, would violate Michigan law.
A traditional vehicle-finance transaction is different: it can use a recorded lien or security interest rather than a lender holding the paper title. Michigan’s Motor Vehicle Sales Finance Act requires licensing for installment sellers and sales finance companies unless another listed licensing regime applies. That does not make a physical-title title loan lawful.
Sources: Michigan Attorney General: Auto Title Loans consumer alert; MCL 492.103; and MCL 492.102.
Michigan title loan limits
| Rule | Michigan limit or status |
|---|---|
| Maximum APR / interest rate | Not applicable to a prohibited physical-title loan. The Attorney General says a 25% monthly charge, approximately 300% APR before added fees, violates Michigan law. |
| Maximum loan amount | Not specified because an auto title loan involving physical possession of the title is not permitted. |
| Minimum / maximum term | Not specified because the prohibited product has no lawful title-loan term. |
| Rollovers permitted | Not applicable. The Attorney General warns that rolling a loan into a new loan adds charges and can deepen debt. |
| Repossession notice period | No title-loan-specific period applies to the prohibited product. Do not assume a lender holding the title has a lawful right to take the vehicle. |
| Right to cure / redeem | Not specified for a prohibited physical-title loan. Rights in another secured-credit agreement depend on its contract and applicable law. |
| Surplus return after sale | Not applicable to a prohibited title-loan transaction. Seek independent legal help promptly if a lender threatens a sale. |
What you need to apply in Michigan
You should not provide a physical vehicle title to a company offering a Michigan auto title loan. The Attorney General specifically identifies possession of the title as the feature that makes the commonly advertised transaction unlawful. Be cautious with online advertisements that target Michigan residents while claiming to operate from another state.
For a legitimate vehicle-finance or installment-credit transaction, ask the provider to identify the legal creditor, its applicable license, the APR, finance charge, payment schedule, and whether a lien will be recorded. Keep copies of every disclosure. Never sign blank paperwork or surrender keys, title documents, or remote access to the vehicle without understanding the legal basis and written terms.
How repossession works in Michigan
A lender cannot make an unlawful title-loan arrangement lawful by calling a vehicle pickup a repossession. If a company holds your title or threatens to take your car, preserve the agreement, payment history, notices, and all messages. Ask the company to identify the creditor and the contractual provision it relies on. The Attorney General warns Michigan consumers that online and national title-loan advertisements can put a vehicle at risk.
Act quickly for legal guidance if you receive a repossession threat. The facts matter, especially whether there is a valid recorded lien or a different finance agreement. The Michigan Attorney General’s consumer-protection resources are a sensible starting point for reporting a suspected unlawful transaction.
Licensed alternatives in Michigan
Use a source that addresses the actual bill or emergency before putting your transportation at risk. Michigan’s State Emergency Relief (SER) program may help eligible households facing emergencies that threaten health or safety, including heat, utilities, home repairs, relocation, and certain other essential needs. Applications and eligibility information are available through MDHHS State Emergency Relief and MI Bridges.
- Utility bills: the Michigan Energy Assistance Program information hub explains SER, energy assistance, and how to find local help.
- Local support: call Michigan 211 or search its directory for community programs in your county.
- Credit-union options: ask a federal credit union you are eligible to join whether it offers a Payday Alternative Loan or another small-dollar product. The NCUA’s PALs II rule describes this federal-credit-union option.
- Existing creditors: request a payment plan or hardship option before the bill becomes delinquent.
Cities we serve in Michigan
For city-specific consumer information, see Saginaw, Livonia, Westland, Lansing, Farmington Hills, and Novi. Michigan law still applies regardless of where an online offer is advertised from.
Frequently asked questions
Are auto title loans legal in Michigan?
No. The Michigan Attorney General states that auto title loans in which the lender takes physical possession of a borrower’s vehicle title are not permitted under Michigan law. A recorded lien in a conventional vehicle-finance transaction is different from surrendering the physical title for a quick-cash title loan.
What is the maximum title-loan APR in Michigan?
Michigan does not establish a lawful maximum APR for the prohibited physical-title-loan product. The Attorney General says lenders commonly advertising 25% per month, about 300% APR before added fees, are charging a rate that violates Michigan law. Do not treat an advertised rate as a permitted offer.
Can an online lender make a title loan to a Michigan resident?
Online advertising does not change Michigan’s consumer-protection rules. The Attorney General specifically warns Michigan residents about responding to national and online title-loan advertisements. Before sharing documents, confirm who the creditor is, where it is regulated, and whether the proposed transaction is lawful for a Michigan consumer.
What should I do if I need help with a utility bill in Michigan?
Start with the Michigan Energy Assistance Program information hub, MI Bridges, or Michigan 211. State Emergency Relief may assist eligible households facing qualifying utility, heat, housing, or safety-related emergencies. Contact the utility early as well, because payment plans or hardship programs may be available before disconnection.
What should I keep if a title-loan company contacts me?
Keep advertisements, emails, texts, the proposed agreement, payment records, and the company’s stated name and address. Do not surrender the physical title, keys, or vehicle based only on a verbal promise. Those records can help you obtain independent advice or make a consumer-protection report if the offer appears unlawful.
