Florida Title Loan Laws

Posted On Tuesday, 06 September 2022 20:28

A handy source of ready cash, car title loans can be just what you need in an emergency. Floridians considering this service have a several laws in place to help protect them from people who might be attracted to this industry seeking easy prey. 

Understanding these Florida title loan laws can help you keep them at bay.

What is a Title Loan?

Accepting cash in exchange for pledging the title to your car is called taking a title loan. While the value of your vehicle will determine exactly how much can be borrowed against it, loan amounts can vary from $250 up to $10,000 or more. These are short-term loans, meaning they come due within 30 days of the date the cash is accepted. 

These loans can, in some cases, be extended for longer durations by mutual consent — you and the lender agree to make the loan for a longer amount of time. You maintain possession of your car, and your right to use it while you repay the loan.

How to Apply for a Title Loan

Gathering the following documents will make applying for a title loan faster and more easily accomplished. 

1. Title documentation for the car

2. Government issued ID (driver’s license, state ID card, passport, military ID) 

3. Proof of residence (utility bill, telephone bill, etc.)

4. Proof of income (pay statement, tax documents)

5. Photographs of the car (if applying online or by phone)

6. Odometer reading from the car

In most cases, applications can be completed online, and you’ll be asked to upload the documents listed above. When photographing the car, take nice, clear pictures from all four angles. Include pictures of the interior, as well as a close-up of the car’s odometer reading.  Photos are not needed when applying in person, though having them will save time. 

Florida Title Loan Laws

The Florida Office of Financial Regulation licenses lenders. You would do well to avoid doing business with an unlicensed lender. A lender’s legal status can be verified online at FLOFR.com, or by phone at 850-487-9687.

Interest charges of up to 30% annually can be applied to the first $2,000 borrowed with a title loan. An interest rate not to exceed 24% can be applied to the next $2,000 up to $3,000. Any amount above $3,000 will carry an interest rate of up to 18%. Florida title loan agreements must reflect the exact amount borrowed and what the interest rate will be. 

The agreement must also contain a notification that the car will be seized and sold if the terms of the loan agreement are not met. The lender must provide notice before taking possession of the vehicle and offer the borrower an opportunity to surrender it at no charge. In a situation in which the car is seized, borrowers must be given an opportunity to recover any personal possessions that may be in the vehicle. 

Florida law then gives lenders 30 days to sell the vehicle and refund any excess cash beyond that which is required to recover the outstanding loan amount. Lenders are also allowed to keep enough money to cover all accumulated interest, as well as any fees associated with recovering the car and selling it. 

Borrowers must be given 10 days’ notice before a sale commences, listing the time and place at which the sale will occur, as well as exactly how much is owed. Borrowers may repay what is owed to get the car back at any time before the announced date of sale.
These are the key aspects of Florida Tile Loan Laws of which to be aware before signing up for one of these loans. You’ll find more on the topic at the  Florida Attorney General office’s website.

Rate this item
(0 votes)

Realty Times

From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.

Joomla! Debug Console

Session

Profile Information

Memory Usage

Database Queries