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, 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).
Borrowers wishing to get 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. There are income requirements for a title loan in Florida, and you must prove that you make at least $2,000 monthly to qualify. 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, truck, or motorcycle. Sometimes, you can use a boat, RV, 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 have unlimited extensions available every 30 days. 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 advertising “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. They must give the borrower ten days’ notice before the car is put up for auction, and most lenders will 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 but have yet to miss a payment, we recommend contacting your lender and working 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 other arrangement where another title loan company in Florida buys out your loan.
Also, the lender can only use the funds retrieved from the sale to pay off what the borrower owes and any associated fees attached to the repossession and sale. If there’s a remaining balance, this must go back to the borrower within thirty days of the vehicle’s sale, and if they have to go to court to pick up the balance, the lender must cover those legal fees.
Borrowers will want to ask upfront what a title loan lender’s policies are on repossession and sale procedures and whether or not they can get their car back before it’s sold. Once again, lenders generally allow this, but this stipulation falls under Chapter 516 of the Florida Statutes, which doesn’t have as many protections as Chapter 537. Lenders must provide written statements on borrowed amounts and interest rates, but repossession procedures, sales procedures, and what lenders can charge for are not as straightforward. Remember that most legitimate title loan companies don’t want to repossess your vehicle! Interest rates charged on title loans are high, and they prefer that you keep making your monthly payments on time. Don’t hesitate to contact them, as there’s a good chance they’ll renegotiate your payment terms or get you a lower monthly payment!
How Many Title Loans Can I Have At One Time in Florida
As title loans require a lien free title, you can only have one title loan at any time. Sure, there are scenarios where you can talk a lender into offering a 2nd lien title loan, or perhaps they’ll 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 allow car title loans to be refinanced quite a few times, while others only allow it to occur three times. In Florida, you can refinance your title loan as often as your lender allows. Some companies will also buy out your title title loan, which means they’ll get you new lending terms on a title loan. Avoid a possible repossession by finding a lender in Florida who will buy out your existing loan! This allows you to get new payoff terms and a fresh start with a new title loan company!
Defaulting on a title loan in Florida increases your finance charges and late fees. When your loan goes unpaid, you will still have to deal with substantial monthly costs and interest rates. But most title loan lenders in Florida can repossess your vehicle after a few weeks of default. Besides dealing with the stress of repossession, you may also owe money to your lender if the car is sold at auction and it doesn’t cover the total loan costs. In this scenario, your debt will be unsecured, but a lender can still come after you in a civil case and threaten to garnish your wages for the unpaid amount.
Check If Your Title Loan Lender Is Licensed In The State Of Florida
Companies that offer no inspection title loans know the regulations that cover secured loans. There’s only so much they charge you regarding interest rates, fees, and other loan origination charges. However, some lenders aren’t licensed to provide title loans or any other short term loan in Florida. Contact the State Attorney General’s office to see if you’re working with a licensed lender in FL.
Some secured lenders operate entirely online, and others operate as tribal lenders. These companies claim to be exempt from lending regulations in Florida, and most aren’t registered or licensed as title loan companies in Florida. While you can sometimes get a lower interest rate with an unlicensed lender, you won’t have the regulatory protections if that company was a state licensed lender.
Filing a complaint against a car title loan lender in Florida
Suppose a borrower wishes to file a complaint about their title loan company. Maybe they were charged more fees than the state allows, or a lender repossessed their vehicle without giving enough notice. Other times, a lender may offer a title loan at a specific rate, only to increase the APR a few months later. In these cases, you can file a complaint by contacting 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!
