Author: Harold Robinson

The laws and regulations on the books in Florida that govern online title loans are constantly changing. As with most lending products, these lending rules are different in most states and it’s not always easy to stay on top of recent updates. Because of that, we developed this site so consumers can be informed of short term lending changes in Florida. We also cover updates on the national level with the CFPB and Federal Trade Commission. Most borrowers aren’t always aware that even your city or local jurisdiction can enact regulations to control or limit online title loans. Cities like Orlando and Miami have their own regulations in place that provide oversight on retail and online loans within their respective cities. With this article we hope to give you a few tips on how to better understand the lending framework in Florida. Let’s get right to the details on what’s different with Florida regulations and other states.

A consumer should always investigate the laws that apply to their city and state. They need to make certain that they’re well-versed in the particulars of how these types of lending are regulated. Most regulations in Florida for online title loans have been in place for years. In light of recent developments, there aren’t many changes on the horizon. These regulations will address how the loan can be paid back and what specific fees can be put in place. These terms also cover the finance charges and the amount of lending for which one is eligible. Most amounts are relative to the amount of the principal balance with an auto equity lender.

The most important updates relate to how the regulators view short term loans. Some payday lenders will allow their clients to refinance the loan for several periods. Situations like this occur if the borrower cannot afford to pay back the entire principal amount. Most often this needs to be paid back within one or two payment cycles. This allows the consumer to not end up spending yet another pay period strapped for cash. As they can pay the finance charge and, if possible, a part of the principal. The goal is to put off the full payment for a bit. This is convenient but can lead to problems with interest rates and fees only set to go up. California and Texas handle this arrangement in different ways when compared to Florida title lending finance statutes. Some borrowers choose to get out from under the lending obligation. A consumer can pay off the title loan online in full before the due date. Ensure your company has a policy in place that allows early payment with no prepayment penalty. Also check and verify the finance lending license of any company you work with. You can do this at the State’s License Verification page. You’re able to run a search in real time for any Florida title loan company.

It’s important to consider the number of times you can refinance an online short term loan in Florida. The reasons for why this is important are obvious. One wouldn’t want to plan their immediate financial future around bad lending advice. Some states allow car title loans to be refinanced quite a few times. Other states like Georgia and Mississippi only allow it to occur three times. This will play a significant part in getting one’s budget set up for the next few weeks after a payday or title loan online is taken out. Remember that defaulting on these online loans comes with huge consequences of an increase in finance charges and late fees. The fallout from default on a car title loan is even worse. You will still deal with the huge fees and interest rates. But most title loan lenders in Florida can repossess your vehicle after a few weeks of default. Based on this info, it’s best to find a local company for your budget and future situation.

Another major factor where regulations are concerned is the percentage of one’s established income they will be can borrow.  Some state regulations put restrictions on this when it comes time to calculate the payday loan terms. This means both consumer and service provider have legal protection but the cost is high. Be sure to read your contract terms before making plans for a car title loan. See how much one will be able to borrow so the budgeting is realistic and accurate. Don’t try to “trick” the lender into giving more than they should. Companies that give out title loans in Florida know the regulations that cover personal loans. A borrower who does this can put the lender and the borrower alike in a tough spot. Many of these loans are taken out online through a simple internet search. Compare that to a few years ago when you can go down any street in Florida and find a payday loan company. Payday advances taken out in this fashion are far more convenient than visiting a brick and mortar establishment. Most still will post the regulations that apply to the states in which the company does business. Not all lenders do business in every state. Florida and California have the largest section of short term lending companies. Be sure to check and make certain that any lender is allowed to provide their services in one’s state of residence.

While these online title loan regulations can seem a bit onerous, they do provide for the safety of the Florida consumer. They allow the finance company to operate under predictable and reliable terms. Borrowers have more options to compare their title loan options in FL. Many of these regulations are designed specifically to avoid over-borrowing and high fees. You can even count on new regulations and restrictions coming down in Miami and Orlando as we move towards 2021. The intention is to protect the consumer from getting themselves in over their head. The other goal is to prevent the lender from giving a consumer more money than they can handle. Car title loans are usually taken out for very small amounts, so most of these regulations don’t generally come into play. The consumer should be able to pay off the vehicle equity loan in a few weeks. In this case the title lender can verify the consumer’s income and financial capabilities.State’s Online Title Loan License Verification page.

There are a handful of reasons why big banks don’t offer Florida title loans. We get this question quite often here in Florida. Many applicants would prefer to get cash from their local bank and that’s understandable. Here in Miami, there are hundreds of established banks that provide funds to consumers everyday. The problem is that many of these lending institutions and credit unions aren’t going to provide car title loans. Let’s get right into the facts to determine why banks don’t offer auto title loans in Florida.

To start off as to why really a bank might not give you a car title loan, it is critical to understand what a secured and an unsecured loan is. In the simplest possible way, a secured loan has a piece of collateral that the bank will seize in the event of a default. They have cheaper interest rates but are comparatively more risky. A standard bank loan does not have any collateral to protect it; so that would mean they would charge a penalty for not paying the loan in time. A car title loan is a secured loan while a personal loan is an unsecured one. As an unsecured loan does not take collateral into consideration, in the event of a default, lenders tend to use a borrower’s equity as security. In a general manner of speaking, an unsecured loan will be available to an individual who has a good credit history. But the absence of collateral also causes the bankers to charge higher interest rates, sometimes up to 300 percent.  Most banks in Florida are regulated by the Florida Office of Financial Regulation.  This means they must adhere to strict guidelines which regulate the types of loans they can provide.

These factors often cause banks to stick with unsecured personal loans rather than giving out car title loans. While they require more credit, they allow the bank to be comparatively more secure and also gain more monetary profits. Any licensed bank in Florida will not question the reason you require the money and also how you will spend it, this puts the onus on the borrowers, making it quite risky for them while more credible for the bank. They also have a ton of paperwork. However, if you are taking up a car title loan with your automobile as collateral, here are some factors you should be aware of.

A Credit Union Will Not Let You Use a Pink Slip as Collateral

 

In comparison to unsecured loans, it is easier to obtain a secured loan as they are not so picky about great credit scores. This is because of the fact that there is collateral or a pink slip in place However, the possibility of default remains quite relevant which gives them more reason to avoid it. Second, the banks in Florida get to charge higher interest rates on the loans that they give out in case of a personal loan. Third, a bank has to follow way more complex regulations and background checks in comparison to that of auto title loan companies. In case your vehicle loses value due to any form of damage, it may then be tricky for the bank to cover it up.  If you ever find yourself in a situation where you need emergency cash you should first check with your local and state government.  Here in Florida, we know of many cities like Miami and Fort Lauderdale which provide hands on budget help and workshops.  You can also look into the free resources provided by the Florida Department of Financial Services.

The risk of losing you’re vehicle’s collateral can lead you towards a personal loan. You may not quite realize the possible implications of it in comparison to that of an online service like FloridaTitleLoans. Despite the interest rates and credit scores, a borrower might want to go ahead with a personal loan. And banks might prefer it due to the credit factors involved in the whole process of giving out such a loan. Online title loans are basically for people who need cash fast. Most have bad credit, and have no Florida based bank account or checking information. But they should take it only if they are confident of repaying before due date or they might lose their car.

Did you know there are other ways to get cash besides using your vehicle title? In nearly every situation online title loans are backed by collateral, otherwise known as your pink slip. There are ways to borrow money, these include signature loans and cash advances. Everyone knows what a payday loan is and there’s always the option of working with your bank or getting a low interest advance from a local credit union here in Florida. From the angle of the lender, whether it is a bank or a society it is an unsecured loan. The loan is given purely on the personal credit worthiness of the applicant. From the angle of a borrower it is the most risk free option. But at the same time it is the difficult loan to get if your credit rating is not good.
 

Even if a borrower’s credit score is bad, they can still get a payday loan provided they’re ready to pay out more interest. Since the loan is unsecured, the lender will not have any assets to fall back upon. This is more common that what you see with a car title loan or bank financing as payday advances come with no collateral.  Once you default in your repayment the creditor will take steps to collect. There are a number of banks and agencies that give online title loans but most consumers won’t qualify. To see approval with a bank you will need to show great lending history and good to perfect credit score. Residents of Florida have many options if they fall into this bracket. Those with good credit can go to any local bank or lender in Florida. Cities like Miami and Jacksonville have hundreds of banks that provide low interest loans. Once again though, you need a good credit report score! Bad credit won’t get you very far when a bank underwriter is reviewing your file. Car title loans are often used for unforeseen expenses. This type of borrowing should not be used casually as the charges will quickly add up. Personal loans carry a high rate of interest and along with this a host of other fees like a prepayment penalty and overdue payment penalty are included. Before taking a personal loan, be sure to know the repayment terms.  Check the Florida Consumer Finance Act for more detailed information. Many of the resources that are meant to protect consumers in Miami looking for title loans online.

Before approaching an online loan broker or a bank in Miami you need to consider different finance choices. Before applying for a personal loan or car title loan you must ask yourself the following questions:

 
1. Is the online loan utmost necessity for you at the present situation?
2. What is the amount of loan required?
3. Are you in a position to repay the loan in time?
4. What is the rate of interest that you are capable of paying?
5. What are the additional fees like broker fees, processing fees that have to be paid in Florida?
6. Find out what is the amount of loan protection insurance to be taken?

The Florida Title Loans experience is simple. You need to submit an application and provide documenation that shows you can pay the loan back. In some situations you may also need to show proof of vehicle ownership. The same is often true when looking into a cash advance or financing from a local lender in Miami. You can approach the bank you have been dealing with in the past. The bank will have a definite idea about your previous transactions and is in a better position to help you out when you are in need of funds.

Even in the time of recession a number of banks are giving personal loans. It is important for you to study the various terms and conditions, the interest rates and the repayment schedules before finalizing on the amount of the loan. You can also apply online to the bank giving all the information they require and wait for the bank official or agent to call on you to have a discussion and settle the deal. Getting a personal loan online is convenient as well. You may have to fill up certain forms and declare the purpose for which you are taking the loan. A bank will sanction a loan based on the information you provide and a check may reach you the next day.

Find out from the bank the various rates of interest for their online title loans. If the loan is small and the period of repayment is less the chances are that the rate of interest is also low. Some installment loans will carry finance charges that approach or even exceed those from Florida title lenders! Personal loans can also come by offering a collateral security like your house or car as we discussed earlier. But, keep in mind what happens if you fail to meet your commitment of repayment. You can lose your house and the bank will repossess your house. Same is true with a title loan here in Miami, Florida. There are Florida state laws that protect consumers who fall behind on a vehicle title loan. But you only have protections for a few weeks. It is in your own interest to take out a payday advance or online title loan that’s within your repayment limits.

There are different financing options available to people who ran into cash emergencies. In an effort to find solutions of all types, there is what is known as short term loan choices being on the list of options for borrowers. These are high-cost loans provided in the short-term by companies in Florida and throughout the South. The repayment period and time of this type of loan are on your next paycheck. This is a type of loan you can consider going for if all other alternatives have failed. Remember, most people have no other way to borrow money. By using the collateral in their vehicle they can qualify for terms that wouldn’t be available with a personal loan.

You will need to own a vehicle to get a car title loan. Some companies will also require bank account showing steady and regular income coming from an established source. That way, the lender is not worried about the borrower’s ability to pay because it will be the first thing deducted from their account once the money is received on payday. It is most applicable and useful to people without a credit history or has a bad one. When the borrower is deemed unfit to repay the loan, the money is not issued. Each state has its own regulation around this type of loan and therefore, it will be important to look at this aspect prior to lending or borrowing. Another option is to use a motorcycle of boat to use as collateral for a loan. Some companies will not allow you to do this and the amount you borrow will be small.

What does a title loan lender require for approval?

The borrower is required to make an application to initiate the process. Once the lender received that request, the first thing will be to confirm your earnings and confirm the information in your account. Once satisfied with the search, the payday lender will deliver your money in a matter of minutes at a store. For online requests, an electronic transfer is made by the next day. On part of the lender, they will need a signed check or grant to do an electronic withdraw of money from your account on payday. The auto title loan is usually due for payment after your next payday. This is normally within a period of two weeks even though it could go up to a month depending on when you borrowed it. Money issued at a store will prompt the lender to make an appointment for the borrower to go back and repay the money when due. Failure to show up, interest will be charged on the amount.

Sometimes, online title loans go through a third party affiliate service. This independently decides on brokers and loans and selling it to the highest bidder. These options come with certain risks for those who own a vehicle but still need to get to and from work. Many of these borrowers would suffer if they lost their vehicle and had no transportation to their job. A direct secured lender is most preferred if you really have to take this loan but want to avoid risks of fraud and additional costs to the loan.

How much money can I get by using my vehicle as collateral?

The application and issuance of car title loans depend on the laws of the state and your financial state as well. The amount can be capped between $300 and $5000. Amounts are often determined by the state you live in. Online title loan laws change often in Florida, so you need to stay on top of recent regulatory changes. It is therefore important to know what minimums and maximums exist on this type of borrowing. However, the ultimate decision is not based on this fact entirely. The online lender in consideration of these provisions will issue money commensurate with your earnings, payday borrowing history and monthly expenses. That way, they will have a fair idea of your ability to pay back the loan. Check out our Florida Title Loans homepage that shows the current lending terms for people who need a loan in Florida:

Borrowers of a Florida title loan should show proof of having a bank account with proof of steady income. They should people who have attained the age of 18 years. That means having an active bank account is mandatory alongside the requisite documentation showing your identity. Whether you are going to get the loan or not solely depends on the discretion of the lender. In a typical case, a lender would require proof of $500 monthly income on the minimum. Again, it doesn’t mean that you qualify for the maximum value set by the law. Other factors may contribute to how much you can access, particularly things like monthly expenses and so on. Consider all conditions that exist in this type of loan and whether you are allowed to take it based on where you work. An online title loan is a means of getting financial aid for emergencies for most residents in Florida. It can be an expensive offer considering the interests imposed on it. Unless it is very necessary, you should not consider getting this type of loan for your need!

Florida may be out of a recession, but it always seems that people are tight on cash. When this happens they will look for ways to get cash for short term financial needs. We all know about payday loans and instant cash advances but those are tough because the rates are high and you often can’t borrow much. Qualified residents can get a hold of the extra money in a short amount of time. Using your car’s collateral is a great way to get emergency financing. Consider this option if you have bad credit or don’t want to deal with a bank or installment loan company. However, there are stories about people borrowing a large sum with hopes of paying it off in weeks. Only later do they realize that they owe more in finance charges than the principal itself. People ask how a financial arrangement like this can be legal. But it does happen and one can avoid such situations if he chooses a company and pay the equity loan on time. One of the main culprit of high fees for with Florida online lenders is the rolling fees.

Financial service companies charge a high rate on the principal borrowed. Consider the APR for this loan, it would be somewhere in the range of 100%. In some extreme cases, some Miami based title loan companies will charge rates as high as 200%.  In this situation, the pay back period is calculated by days rather than weeks. An online lender that provides $100 requires a payment of $115 on payday. If the borrower misses the payment, it will be rolled over to the next payment date and the next payment will then be $130. If this sequence is repeated for four pay periods, the borrower owe a total of $60 in finance charges, that’s a full 60% of the principal. When a full seven pay periods is rolled over, the finance fees will be more than the original amount of money borrowed. This is one situation where it should be avoided at all cost. We know regulations in Florida should stop fees and interest from rolling over. However, they don’t always apply to borrowers who seek out online title loans. Also, there are local lenders in cities like Fort Myers, Miami, and Orlando that attempt to skirt licensing restrictions. For example, Miami requires some businesses to obtain a permit or business license before they operate in the city. Check your city and county requirements before signing a contract.

One simple way to avoid this situation is to research the rates before even taking out a cash loan. Many borrowers need cash for an emergency. They look past the situation and understand it’s a short term request. Some applicants take out a title loan without comparing rates between each online lender. Many times they go with a higher rate loan with a title lender who promises them more money up front. A Borrower should spend a couple of hours online understanding the payment structure. Search for better first time deals online before taking out vehicle equity financing. Work with a local title loan company in Florida who provides the best rates and fee disclosures before you sign up. We know by doing this they can lower or eliminate some fees.

Find a Title Loan Company That Allows Early Payments

The other obvious way to avoid a roll over fee is to pay back the title loan on time. This is a simple and realistic way to avoid the rolling fees. Work with your local Florida company to deduct from the payoff itself. You can fix any tendency not to pay and make sure that it is a full repayment and not a partial monthly payment. Most cash advance firms will allow a partial payment, but this is nothing further from the truth. The next solution to emergency cash is to consider other sources of credit. Even though a credit card company charges a high interest rate, it is still lower than an installment or payday loan. Increasing your debt amount will impact your credit score and payment history. So, the same old rules apply here as with an online title loan. Make your monthly payments on time without fail. By doing this you don’t need to work with bad credit lenders when you need money.

Use a credit counseling service to help an individual plan your finances after paying off the loan in full. A credit counselor can help to point people towards sound financial services. Most reputable car title loan lenders will help you find a licensed firm that provides these services. Also consider a title loan company that helps with payday loan reduction. They will work to improve your credit score and help set up a monthly budget. Our article explains the way to reduce the finance charges for short term financing. You should not consider a title loan in Florida if the need is not critical. Instead, plan your finances and take control of your budget and expenses.