South · Vehicle-title lending · State statute guide
Title loan laws in Kentucky
No — vehicle-title lending is not permitted in Kentucky. There is no license for the product, so a lawful title loan cannot exist here, including online offers.
Are title loans legal in Kentucky?
No — vehicle-title lending is not permitted in Kentucky. There is no license for the product, so a lawful title loan cannot exist here, including online offers.
Statute: Title Pledge Act repealed 2020 — new title pledge loans not authorized
A title loan is secured by your vehicle, so legality is only half the question — the other half is what the statute lets the lender do with the lien if you fall behind. In this state, a lender holding your title at payday-style rates holds an unenforceable claim.
What a title loan really costs
Where single-payment title lending is legal, the market rate is commonly 25% per month — about 300% APR on a 30-day note. On a secured loan of $1,000 that is roughly $250 in fees for one month. Installment structures spread the cost but multiply the months — read the total of payments, not the monthly figure.
Repossession: when the lender can take the car
No licensed repossession process exists here, because no title loan can be legally made. If a lender threatens to take your car over an illegal loan, that threat is itself reportable to the Kentucky Department of Financial Institutions.
Who regulates title lending in Kentucky?
Kentucky Department of Financial Institutions licenses title lenders and takes complaints — the license lookup and complaint desk are at kfi.ky.gov.
Repossession rules in Kentucky
Where title lending is licensed, repossession follows the commercial-code baseline that every secured lender must run: a genuine default, written notice and a chance to cure, a commercially reasonable sale of the vehicle, and any surplus above the debt returned to the borrower. Kentucky's notice periods and licensing enforcement run through the Kentucky Department of Financial Institutions (kfi.ky.gov) — the same office that takes title-lender complaints.
Because no classic title lender is licensed in Kentucky, a repossession threat tied to a "title loan" here points at an unlicensed lender — document it and report it.
Last verified September 6, 2026 · Statute: Title Pledge Act repealed 2020 — new title pledge loans not authorized · Source: Kentucky Department of Financial Institutions · Not legal advice — confirm with the regulator.
Questions about Kentucky title loan laws
What is the maximum title loan amount in Kentucky?
There is no lawful title-loan amount in Kentucky — the product is not licensed.
Can the lender repossess my car in Kentucky?
A lender holding your title from an illegal loan has no lawful claim in Kentucky — and reporting the lender is the correct response to a repossession threat.
How much does a title loan cost in Kentucky?
Where the product is legal, single-payment title fees commonly equate to 25% per month (about 300% APR) unless the state caps lower.
Are online title loans legal in Kentucky?
No lawful online title loan exists for Kentucky residents — any offer is unlicensed, and the loan's lien can be challenged.
Where do I report an illegal title lender in Kentucky?
To the Kentucky Department of Financial Institutions (kfi.ky.gov). Bring the title agreement and payment history; if the lender is unlicensed, also notify the Kentucky Attorney General and the CFPB.
What are the repossession laws in Kentucky?
Secured-lending repossession everywhere follows the same baseline: a genuine default, written notice with a chance to cure, a commercially reasonable sale, and any surplus above the debt returned to the borrower. Kentucky's notice periods and licensing enforcement run through the Kentucky Department of Financial Institutions. Since no classic title lender is licensed here, a repossession threat tied to a title loan is itself reportable.