Your Guide To Florida Title Loan Laws
Title loans can be a saving grace when money is tight. Not only do they provide instant cash without lengthy processing periods, but there is no need to provide a credit score. Getting a Florida title loan is just as easy, especially when using a convenient provider like Rapid Auto Loans.
Before applying for a cash advance, it's important to do your research on the legal fundamentals of title loans in Florida. A basic understanding of the laws will help you make the best decision for your needs and protect you from any illegal or unethical businesses.
Start your research here and apply for a title loan with confidence!
The Basics of Florida Title Loans
Don't get caught by the small print in title loan contracts. When you understand the process of a car title loan, then you're able to get the most out of the deal. Title loan requirements may vary from one state to another, so it's important to familiarize yourself with the local regulations in Florida.
Florida Title Loan Act
Title loans are highly regulated in Florida. The Florida Title Loan Act includes the addition of Chapter 537 to the 33rd statute which also regulates trade, commerce, investments, and solicitations. The law outlines regulations for lenders and borrowers alike.
Official lenders need to be licensed with the state. If the business has more than one location, then each location needs to be separately licensed. These licenses should be visible and regularly renewed to stay up to date. The Florida Office of Financial Regulation is a resource for both lenders and borrowers.
The regulation covers the following areas:
- Lenders options in the case of a defaulted payment
- Limits on interest rates
- Details on renewals and rollovers
- Maximum and minimum title loan limits
- Maximum and minimum terms of repayment
- Penalty fees
Title Loan Requirements in Florida
Car title loans are effective emergency cash sources as the approval process is less strenuous than other financial loan arrangements. While each lender may differ, borrowers must meet certain criteria to qualify for a car title loan.
Borrowers must have the following:
- A car title or physical possession of a car title
- Proof of income from a reliable source, whether it be a salary, child support, or disability grant
Specific lenders may require other information, such as details on the model of the car, etc.
Contract Essentials
The contract will determine key information such as the loan amount and repayment plan. As a state, Florida demands that certain information be included in the contract, including the following:
- Vehicle details - make, model, year of manufacture, VIN, license plate number
- Borrower's details - name, address, date of birth, Social Security number
- Terms of the loan - initiation date, loan amount, the maturity date of the loan, annual percentage rate (APR)
While it may not be glaringly obvious, it's required that the contract also provide the physical address of the lender and the contact details for the Department of Financial Services. Also included should be instructions if the car is stolen. Both parties need to sign the contract and the borrower should receive a copy at the time of signing.
Repossession Risks
In the unfortunate instance of failing to make payment, then the lender may repossess the vehicle (which is being used as collateral). The vehicle may be repossessed and sold at auction; however, the lender is required to give the borrower a chance to surrender the vehicle and remove any personal items.
If possible, the borrower can also repay the title loan, along with any expenses, to reclaim the vehicle before being sold.
In the instance that the car is repossessed, then the lender is responsible for keeping the asset safe and secure.
Protect Yourself Against Illegal Business
Unfortunately, not all lenders play by the books. Protect yourself from unethical lenders who dabble in illegal business.
If a lender does the following, then it's a warning sign that they are up to no good:
- Force you to waive your rights
- Sell your insurance
- Refuse partial payments
- Charge a prepayment penalty
Once the loan has been repaid in full, the lender needs to remove their lien on the car title.
The Best Florida Title Loan Providers
Are you looking for a car title loan in Florida? Once you've done your research on the legal aspects, you can begin to search for a trustworthy title loan company in Florida. Rapid Auto Loans fits the bill, allowing borrowers to take out long-term car title loans over 12 months which reduces the stress of having to pay the money back over 30 days.
Contact our friendly and helpful team online or give us a call at 954-678-5781. Turn your car into cash today - and then drive it home!
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