Florida Title Lending Regulations

Title loans are a popular financing option for borrowers in Florida. These secured loans require using an asset(typically a vehicle) as collateral for a loan that often comes with high interest rates.  When it comes to title loans, many people are left wondering if title loans are legal in Florida. There is often a lot of confusion about title loans because laws governing short term loans differ based on location. Title Loan Regulations in Florida states that title loans are legal in the state, but certain restrictions apply.


What Are The Requirements For A Title Loan In Florida?

Title loans are short-term loans that are processed in the presence of a government official. The following is how the process works:

  • The first step is checking the vehicle for proper insurance in Florida.
  • The lender or the organization involved estimates a price for the asset; They may lend up to 25% of the price of the asset. In the case of pawning, they may lend up to 100% of the value.
  • The lender will set a time period and a rate of interest.
  • If the money is not returned within the time period, then the lender or the organization can liquidate the asset.


The Legal Status Of Florida Title Loans

According to the Florida Title Loan Act, stated in chapter 537, Title loans are legal in the state of Florida. Using your car, land, and jewelry as collateral is legal according to Florida state laws. These Title loans are lawful only if the asset is collateral under insurance by any registered insurance company. Sunshine state rules for local residents that cover online title loans in Florida

In case of the absence of insurance, they can also use other valuable secured items. It is better to pawn articles for raising some money than using other articles as collateral assets. This is because there are so many short term money lenders who lend money while keeping the most valuable assets as collateral.

Basic rules and regulations regarding Title loans in Florida

Since using a vehicle as collateral is legal in Florida, there is a set of laws and regulations that prevent organizations from harassing the borrower. Following is the set of laws specifically for Online Title Loans in Florida.

Registering in the State Office

The Florida Title Loan Act requires the lender to register in the state Office of Financial Regulation. In order to receive a loan, the borrower and the lender must sign a written agreement before a witness that should state four important facts, the name of the lender and borrower, the amount, the time period, and the rate per month. These requirements are the same for both standard car title loans and vehicle registrations loans.

In case of any fallacy by either the lender or the borrower, they can contact the Florida Office of Financial Regulations for more information


Interest Regulations for Title Loans in Florida

Florida state laws allow the lender to charge interest up to 30% per year for a sum equal to or less than $2000, an interest of 24% for additional money between $2000 and $3000, and an interest rate of 18% for any money above $3000. Notice that all these rates will be charged yearly.


The inability to pay off a Florida title loan

Another very important law as stated by the FTCA, states that in case of inability to pay off the amount along with the interest, the lender holds the right to possession of the article used as collateral and can sell it. The lender will keep the amount lent along with the interest and the lender may keep some extra expenses while the rest of the money has to be lawfully returned to the borrower. It is a fact, that the process of money lending and borrowing is risky for the borrower, and thus the person should keep all laws in mind before proceeding with the agreement.

Florida has different laws and restrictions that cover title lending in the state.