What is an Advance America title loan and how does it work?

An Advance America title loan is a type of short-term secured loan offered by Advance America, a provider of consumer financial services. It allows individuals to borrow money using their vehicle as collateral. The borrower grants the lender a lien on the car's title in exchange for a loan amount determined by the value of the vehicle. The borrower retains possession of the vehicle while repaying the loan but must surrender the hard copy of the vehicle title to Advance America. The loan typically comes with a high-interest rate and must be repaid within a short period, which can be as brief as 30 days. Failure to repay the loan per the terms agreed can result in repossession of the vehicle by Advance America to cover the outstanding debt.