|It's a trap!|
Some payday loan shops have been asking people to secure their loan with more than their paycheck; some have asked to use a car title or even a home's title as collateral. If the borrower defaults on this loan (sometimes in as little as 2 weeks), the collateral becomes that of the lender. Using your $10,000 car as collateral for a $500 loan is blasphemous.
The best way to avoid these scams is to just not use payday loans. Have an emergency/savings fund for these circumstances as getting a payday loan just isn't worth it.