Title Loan Laws in Florida
Title loans are types of financing arrangements that allow people to receive money to meet financial obligations in case of an emergency. In most cases, they are quite helpful and allow individuals to get out of troublesome financial situations.
However, like most loans, title loans can get and keep you in debt for a very long time. As a result, it is important to manage the debt wisely. To help people more effectively manage this debt, the state of Florida has a number of laws that help individuals from being victim of predatory lending practices.
By knowing the title laws in Florida, individuals who are looking for this kind of loan will be able make sure that they get a manageable loan amount from a reputable source.
Some Requirements You Should Know About Before Applying
When looking to get Tallahassee car title loans, consumers will need to know laws in regard to state requirements. In Florida, individuals will need to have a valid checking account that is active.
They will also have to provide a source of income that is verifiable such as a paystub, paycheck and/or tax return. They will also need to have a valid social security number and be at least 18 years of age to be eligible for a car title loan.
Along with these requirements, borrowers will need to have title to the vehicle in their name. Lastly, it will be required that any borrower of a title loan have proof or residency by furnishing a utility bill and a bank statement in their name.
The Interest Rates In Florida
One of the most important aspects of the Florida title loan laws is interest rates. There are a number of organizations that have looked to put stricter regulation of interest rates.
Since there are a number of states that charge very high interest rates, Florida has looked to put limits on these rates in order to make lending practices more fair to consumers. According to recent data, Florida law allows title lenders to charge interest rates of up to 30% per year for the first $2,000 in funds given.
The rates then go lower to 24% in the second year and 18% in the third year. Since these are high rates, it is important for consumers to carefully consider this before getting a title loan.
However, Florida has enacted a law that puts limits on what lenders can charge. As a result, consumers will not have to worry about paying more than 30% on a title loan at any time.
Repossession Laws in Florida
When getting a title loan in Florida, you will also have to consider the repossession laws. Fortunately for consumers, title lenders cannot just take your vehicle after one day of defaulting on the loan.
Instead, the lender needs to give you 30 days before repossessing the car. This will enable consumers to get all of their belongings out of the car. Along with giving you 30 days, it is also required that the lender informs you about a repossession and give you an opportunity to return the car at a convenient time for both parties.
Lenders will also have to send you a notice 10 days before the car is sold and when it will be sold. They are obligated to reveal to you the amount owed on the loan, how much interest was accrued and any expenses that were needed to store your car. If you are able to make a payment on the loan before the lender sells the car, they will need to give your car back to you immediately.
Managing and Making Your Payments
When it comes to making payments, the laws concerning title loans are quite favorable for consumers. In some states, a lender can refuse to accept partial payment. They are also allowed to charge you a penalty if the payment is not made in full.
In Florida this is not the case. Even if you make partial payment, you will never be liable for being charged a penalty. Therefore, Florida has a law that protects consumers from paying more than necessary on a title loan even if they make just a partial payment on the loan.
Getting a title loan in Florida can be very beneficial for people in need of extra money. However, such loans can be quite costly if you are not careful. In order to help people avoid the pitfalls of title loans, the state of Florida has enacted laws to protect consumers.
These laws will help consumers avoid exorbitant interest rates, unfair repossession policies and also allow them to avoid making penalty payments on loan balances that are not paid off in full. As a result, Florida has been able to help accommodate individuals who are looking to get the most out of the title loans they get.