Title Loan Regulations In Florida
Throughout Florida, borrowers will find that online title loans are generally legal, but there are some limits and caps on interest rates, repayment terms, and fees. While there are no limits on the amount you can borrow set directly by statute, you must prove that you can afford the required monthly payments. Still, the state does adhere to strict lending regulations to protect borrowers from excessive borrowing and high fees, and most importantly, you have protections if your vehicle is ever in danger of being repossessed. Title loan companies are regulated statewide by The Florida Title Loan Act (Chapter 537 of the Florida statutes).
Borrowers applying for a Florida title loan must have a current and valid state-issued driver’s license, be over 18, and own a vehicle titled in their name. Florida does not have a specific minimum monthly income requirement, but lenders typically require proof of income to show an ability to repay the loan. Some title loan lenders limit the types of vehicles that can be used as collateral, but generally, you can cash out equity from a car or truck. Sometimes, you can use a boat, motorcycle, or commercial truck as collateral for a title loan in Florida, but loan amounts will often be lower. The best way to determine what qualifies as collateral is to see if your vehicle can be titled and registered with the Florida Department of Highway Safety and Motor Vehicles (FLHSMV). Assuming you can show paperwork proving ownership of a registered vehicle titled within the state, you stand a good chance of qualifying for a title loan in Florida.
The standard repayment term on these pink slip loans is 30 days, but borrowers may be able to obtain extensions every 30 days, subject to lender approval and written agreements. Strict rules are in place within Florida to protect borrowers from unfair lending practices, and most licensed companies are prohibited from bundling other required financial products into your title loan. Pink slip lenders aren’t allowed to sell or even require insurance with a title loan, and they can’t do things like advertise “interest-free” loans or “no finance charges.” They’re also banned from charging prepayment penalties, refusing partial payments, or lending to someone who can't afford the monthly payments.
What happens if I can’t pay a title loan on the due date?
If a borrower cannot repay their title loan, a licensed lender in Florida can repossess and sell the vehicle to pay off the loan balance in accordance with state law. Lenders must provide proper notice before a vehicle is sold, and many lenders allow additional time for you to repay the loan. This gives the borrower one final opportunity to pay off the due amount before the car is sold. Even if you're only in danger of falling behind and have yet to miss a payment, we recommend contacting your lender to work out alternate payment arrangements. At this point, it's much easier to negotiate to lower your monthly payment or reduce your interest rate than if you had already fallen behind. Another option is to consider a title loan refinance or another arrangement in which a title loan company in Florida buys out your existing loan.
The lender may also use funds from the sale to pay off the loan balance, lawful repossession and sale-related costs. If there’s a remaining balance after the sale, it must be returned to the borrower within 30 days of the sale. If court involvement is required to recover surplus funds, the borrower may be entitled to reimbursement of reasonable costs as allowed by law.
Borrowers should ask a title loan lender about its repossession and sale procedures, and whether they can get their vehicle back before it’s sold. These protections fall under Chapter 537 of the Florida Statutes, which provides specific consumer safeguards about lending in Florida. Lenders must provide written disclosures of borrowed amounts, interest rates, and key loan terms.
While repossession and sales procedures can vary by lender, they must still comply with Florida law! Remember that most legitimate title loan companies don’t want to repossess vehicles. Because interest rates are high, lenders generally prefer borrowers to continue making payments. Don’t hesitate to contact your lender, as they may be willing to renegotiate payment terms or explore lower monthly payment options.
How Many Title Loans Can I Have At One Time in Florida
Because title loans require a lien free title, borrowers are generally limited to one active loan per vehicle. In some cases, a lender may offer a 2nd lien title loan, or they may pay off your original lender. However, you'll usually be limited to having only one title loan on your vehicle's pink slip.
Some states restrict how often title loans can be refinanced, but in Florida, refinancing is generally allowed as long as the lender agrees and the loan remains compliant with state law. Some companies will also buy out your title loan, providing new terms and potentially helping borrowers avoid a repossession. This can give an over-extended borrower a fresh start with a new title loan company!
Defaulting on a title loan in Florida may result in additional interest and late charges as outlined in the loan agreement. If a loan remains unpaid, a lender may eventually repossess your vehicle. In some cases, if the vehicle sale does not fully cover the loan balance and allowable costs, the remaining balance may become unsecured, and a lender may be permitted to pursue lawful collection options subject to Florida law.
Check If Your Title Loan Lender Is Licensed In The State Of Florida
Companies offering Florida title loans must comply with Florida regulations governing secured loans. There are limits on how much they can charge for interest, fees, and other loan-related costs. However, some lenders operate without proper licensing in Florida. Borrowers can contact the Florida Office of Financial Regulation or the Florida Attorney General’s Office to verify current licensing information.
Some secured lenders operate entirely online or claim tribal affiliation. These companies claim exemption from Florida lending regulations, and many aren't regulated or licensed as title loan companies in Florida. While an unlicensed lender may sometimes advertise lower rates, borrowers typically do not receive the same consumer protections afforded under Florida law.
Filing a complaint against a car title loan lender in Florida
If a borrower believes a title loan lender violated Florida law, such as charging excessive fees or failing to provide proper notice before a repossession, or misrepresenting interest rates, a complaint can be filed with the Florida Office of Financial Regulation online or by calling 850-487-9687. Borrowers can also contact the Florida Attorney General’s Office or call 1-866-9-NO-SCAM.
Contact Florida Title Loans at 888-986-8505 with any additional questions about title loan regulations or requirements in Florida!
