If you are looking to get a car title loan in the state of Florida, but you are not sure if they are legal or not, because you are getting conflicting information from different people, we are here to set the record straight.
Car title loans are legal in the state of Florida, so you can use the equity that you have in your vehicle, to get the emergency money that you are looking for.
Using the equity that you have in your car is a great way for you to get the money that you need, but with all loans, you need to be aware of potential problems, and title loans in Florida are no different.
Choosing The Right Title Lender
Choosing the right car title loan company can be the difference between having a good title loan experience, and having a bad one, choosing the right lender with the right terms, will make a big difference.
There are many different title lenders to choose from, so you need to select the best one for you, you need to make sure that you can get the maximum amount of money on your car title, but you also need to make sure that you are getting the lowest possible rate.
Some title lenders will charge triple-digit interest, you must stay away from them, you need to shop around, title loans are much more expensive than traditional loans, so you will be paying more in interest, so you must find the lowest rate.
Stay away from shore term title loans, you want to choose a title loan that will give you up to 36 or 48 months for you to repay it so that your monthly payments will be affordable, do not go with a 30-day title loan term, these are debt traps.
Make sure that a title loan that you choose has no prepayment penalties so that you can pay it off whenever you want, so you do not have to worry about the 36 months or the 48 months, the longer-term will make your monthly payments affordable.
It is also important to choose a title loan company that offers amortized payments, so your monthly payments will go towards your principal balance, and your interest. Interest-only title loans are not good, because you will have to make a balloon payment when your term is over.
Regulated Title Loans
Car title loans in Florida are regulated by The Florida Title Loan Act, this act is to protect the borrowers from the lenders charging interest rates that are too high, and makes title loan terms too short.
All title loan lenders in Florida, have to be licensed, and all lenders have to show the borrower a copy of the contract first, this will have all of the disclosures on the interest rate, and the term of the loan.
In other states they will also have different regulations for car title loans, all of the laws are to protect the consumer, from overly aggressive lenders.
The CFPB will also regulate all lenders to make sure that they comply, so you need to make sure that you select car title loan companies that are in full compliance.
A car title loan in Michigan is different title loan in Florida, so no matter where you are living, you need to make sure that if you are interested in getting a title loan, that first they are legal in our state, and second of all, that the lender is fully licensed.
Repossession Laws
You might want to know about the repossession laws in Florida, but if for some reason you do default on your title loan, the lender can repossess your vehicle, under the law Chapter 537, but the lender must disclose your legal rights to the car, to be reinstated, or to pay off the loan, or for the lender to sell the car.
Also, the title loan lenders in Florida need to disclose the right to repossession, the law Chapter 537, requires the lenders to disclose the borrower’s legal rights, and that the lender can repossess the car, and sell the car.
The borrower will be notified where they can pick up their personal belongings from the repossession company, the lender must also notify the borrower 10 before they are going to sell the vehicle.
Bad Title Lenders
If you have found that your title lender is in breach of the law, you need to report them to the Florida Office Of Financial Regulation or go to the website Flofr.com or you can call them at 850 487 9687.
If you wish you can also report them to the Floridas Attorney General’s Office, by using their website MyFloridaLegal.com, or you can call them at 866 9 NO SCAM, and inform them of the wrongdoing of the lender.
Bad Credit Loan Options
Car title loans are generally used by people with poor credit, but there are plenty of other options for you, you can always try your local bank, or even a credit union.
You can go to a payday loan company, but they will only give you a few hundred dollars, or you could go to an auto pawn company, they will give you the money that you need, but they will hold on to your vehicle as the collateral.
Finding the right car title loan company can make them the best fast money option for you, remember to select your car title loan company wisely.
Using Title Loans
Getting a car title loan is not the cheapest option, so you need to make sure that you shop around for the lowest interest rate, but with a title loan, you will be able to get same-day funding.
You can find payments that will fit into your monthly budget, and by making your title loan payments, you can also increase your credit score.
Do your homework on the title lender that you are thinking about, you should check out their online reviews, to make sure that it is a company that you want to work with.