RICHMOND, Va. (AP) -- Here is a comparison of payday lenders and car title lenders:

COLLATERAL:

Payday loans require a personal, postdated check as collateral for a loan. Car title lenders require the title to your car, which they put a lien on, and a copy of the keys in case they end up repossessing it.

COST:

Payday lenders charge around $15 for each $100 loaned in most states, pushing the annual interest rate close to 400 percent for a typical two-week loan. The maximum loan usually is $500. Car title lenders usually charge around 300 percent interest, a membership fee and a small fee for recording the lien on the title. The maximum loan normally is about $2,500.

PAYBACK:

Most payday loans are due in two weeks, or whenever the borrower gets paid again. In many states, car title loans are due in one month. In Virginia, title lenders operate under open-end credit laws, which means there is no set due date, but the lenders cannot charge any interest for the first 25 days. In some states, title lenders keep the profits when they sale a repossessed vehicle.

REGULATION:

Payday lenders operate in 37 states, compared to about 21 states that have car title lenders. A dozen states have limited the annual interest rate on all small loans, usually at 36 percent, and payday and title lenders do not do business in those states.

LEGISLATION:

This year, eight states are considering either new or tougher regulations for car title lenders. In 2007, 16 states took on car title lenders, and six of those passed some sort of regulations.

MILITARY:

Congress in 2006 passed a law that took effect last year prohibiting payday lenders, car title lenders or tax refund anticipation operations from charging members of the military or their families more than 36 percent interest on loans.

EASY MONEY:

Payday and car title loans are quick and easy to get. Neither require a credit check. Payday loans require a checking account and ide.jpgication. Car title loans require the borrower to own the car.

ONLY OPTION:

Both are touted as the only option for those who may not qualify for a loan from a bank or credit union. They also claim their loans are for short-term, emergency use instead of a long-term financial solution.

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