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 payday 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 too 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 and the amount of lending for which one is eligible. Most amounts are relative to the amount of the principal balance with a auto equity lender.
The most important updates relate to how the regulators view short term equity 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 company in the state.
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. Unlike FL, Some states allow the cash advance 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 installment loan is taken out. Remember that defaulting on these online loans comes with huge consequences like 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 reposes 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 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 into the first part of 2020. 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. Because these car title loans are usually taken out for very small amounts, most of these regulations don’t generally come into play. The consumer should be able to 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 License Verification page