Lenders are not permitted to require or sell car insurance when they provide a title loan to a customer. They have to take partial payments and cannot charge a fee for early payment. Lenders cannot advertise “no-finance charge loans” or “interest-free loans”. They are not permitted to sell vehicles, new or used, as part of their business practice. Finally, they aren’t allowed to lend money to anyone who is visibly under the influence of alcohol or drugs.
If you don’t pay it off in time, the lender can legally repossess, offer companies that will buy out your vehicle title loan and then sell it to recoup any losses. Here is what will happen:
Your Florida lender will be legally required to give you the chance to bring your car in yourself after you set up an appointment. MN title loans If you do not make that appointment, they can have a DMV agent come to your home to repossess the vehicle. They are required to give you enough time to get any of your personal belongings out of the vehicle before they take it.
Once the lender has possession of your vehicle, they are then permitted to sell it in order to pay off the balance of the loan. They are legally obligated to provide you with a 10-day-notice before the sale occurs to give you another chance to pay the loan off. Under Florida title loan laws, you are also permitted to buy the vehicle’s title back in the sale. If you have extended your loan a number of times, this could be the least expensive option.
The lender is only allowed to use the money from the sale to cover your past loan balance and other costs associated with having to repossess and sell your car. If there is any money left over after these costs are paid, it must be given to you within 30 days of the original sale. If you must take the lender to court to recoup this amount, the lending company will be required to pay all of your legal fees.
Requirements for a Title Loan in Florida
In order to be approved for a Florida title loan, you will need to be 18-years-old or older. You will also need:
- The title of the vehicle in your name
- A valid government-issued ID
However, many will ask for some proof of income, such as a recent bank statement or a current bank stub
Lenders do not have to verify whether or not you have the ability to repay the loan as part of the application process even if you are trying to do a title loan refinance. Lenders may also place restrictions on the make, model, year, and mileage of the vehicles they accept.
- Tampa/St. Petersburg
- Jacksonville / Cape Coral
- Orlando / Port St. Lucie
- Fort Lauderdale
- Gainesville / North Port
Even though the state caps the interest rates on Florida title loans, there aren’t any legal caps concerning the fees. Lenders can then charge high fees on their car title loans. Because of this, you may wish to look into other types of loans before settling for a car title loan. For example, an installment loan may have a longer repayment plan with a lower APR.
Tribal loans are another consideration when you need money. You can get an installment loan from a tribal lender in Florida. They do come with higher APRs; however, their repayment plan is more affordable.
Auto title loans, cash advance loans, title loan refinance and installments loans will all charge you high fees and interest rates. You can easily become trapped in a cycle of having to take out another loan to repay the first one, especially if you are already struggling with your finances. Many borrowers find themselves on their third or fourth loan after being unable to repay the first one.