TitleMax - Title Max Loans

TitleMax, Inc. is a privately owned title lending business based in Savannah, Georgia. The company has more than 1150 stores in eighteen states. TitleMax serves individuals who generally have limited access to consumer credit from banks, thrift institutions, credit card lender and other traditional sources of consumer credit. TitleMax offers a title loan product which allows customers to meet their liquidity needs by borrowing against the value of their vehicles while retaining use of their vehicle during the term of the loan. Many locations are in former fast food outlets which the company renovates.

History

On September 1, 1998, TitleMax opened the first location in Columbus, Georgia. In October 1998, TitleMax opened its second location in Savannah, Georgia. Many Savannah locations were then established, and later that year, TitleMax opened the first out-of-state store in Phenix City, Alabama. Over the next ten years, the company continued expanding, eventually growing to over 500 locations by the end of 2007, and surpassing $200,000,000 in account receivables. In 2008, TitleMax expanded into Virginia. In April 2009, TitleMax Holdings, LLC, filed for chapter 11 bankruptcy. According to TitleMax’s lawyer at the time, the cause of the default was attributed to “the maturity of an estimated $165 million loan from Merrill Lynch & Co.” In 2008, Bank of America acquired Merrill Lynch & Co.. The attorney of DLA Piper LLP in New York City was quoted in an interview conducted by Bloomberg as saying, “It’s a solvent company, there’s a significant amount of equity over the d ebt.” In April 2010, nearly one year after the bankruptcy filing, TitleMax Holdings LLC won court approval for reorganization and was able to exit bankruptcy status. Since reorganization, TitleMax continued expanding into other states.

On August 12, 2016, a judge in Nevada ordered over 6,000 TitleMax contracts to be voided.

Sister Companies

TitleMax’s parent company, TMX Finance, changed its name from TitleMax Holdings, LLC to TMX Finance LLC as of June 21, 2010. TMX Finance controls over 1450 stores and employs over 3,300 people nationwide. TitleBucks and EquityAuto Loan are the sister companies to TitleMax. In 1150 stores, TMX Finance operates as TitleMax; in 130 stores, the Company uses a TitleBucks brand. TMX Finance also offers a second-lien automobile product in Georgia under the EquityAuto Loan brand, with operations conducted within 122 TitleMax stores and through 4 standalone stores.

Criticisms

Titlemax has received criticism for predatory lending.

References