More than 2 million people a year, on average, take out autotitle loans nationwide, according to a study recently released bythe Pew Charitable Trusts. Auto title loans are growing rapidly inCalifornia and 24 other states where slack regulations have allowedthem to gain popularity. Credit unions need to take notice.

In California alone, the number of auto title loans jumped to91,505 in 2013, the latest data available, from 64,585 in theprevious year and 38,148 in the first year, 2011, that was trackedby the state Department of Business Oversight.

Short-term lenders, also known as Payday lenders, are finding away around new restrictions on payday and other small loans and aremisinforming consumers when it comes to the small print when theyuse their debt-free vehicles as collateral.