Borrowers in Florida can use the equity in their vehicle as collateral for an instant loan from Sunshine Title Lending. However, there are some regulations and rules you should be aware of before working with a lender in Florida.

Title loan lending laws in Florida place several requirements on finance companies and loan brokers. Besides that, borrowers must acclimate themselves to the lending laws that affect the amount they can borrow and the interest rates. By fully understanding the title loan laws, you can rest assured that you're working with a licensed lender that offers rates and terms in line with state regulations.


Car Title Loan Laws In Florida For 2024

The title loan laws in Florida have been put in place to protect borrowers from being taken advantage of by unscrupulous lenders. Borrowing money comes with risk, and a title lender must abide by the Florida Lending Statutes, which form a foundation for ethical lending practices.

Title loans are legal when the borrower's vehicle is used as collateral for the amount borrowed. But before you're approved, you must ensure the lender is licensed within the state and follows the proper interest rate and payment term caps.

Customers can only take out one title loan at a time, and you need to pass a budget test to ensure the monthly payment is no more than 35% of your monthly income.

Lenders can charge loan origination fees, late fees, and sometimes pre-payment penalties. However, these charges must follow state regulations and they must disclose these charges beforehand.


Legal help and laws to know regarding title loans.


Auto Title Loan Repossession Laws In Florida

Repossession is one of the worst-case scenarios that could occur whenever someone takes out a car title loan in Florida. Contact your lender if there's a risk that you'll fall behind on the required monthly payments. Even though they can legally repossess your vehicle after a loan default, it may make sense for them to get you into a payment plan so the loan returns to a current status. See if they are open to a lump sum payoff or title loan refinance that lets you get back on track with the costs. Vehicle equity lenders in Florida have regulations to follow regarding vehicle repossessions:

  • Lenders in Florida must offer a set grace period after the payment is due. This means you will have five days after the initial due date to make your payment and avoid a loan default.
  • The law says they can take control if "the reasonable costs of retaking and holding the collateral do not exceed twenty-five percent (25%) of the loan." If these conditions apply, they can charge you an extra $100 fee in addition to continuing the process of repossession, which eventually includes selling the vehicle at auction.


Florida Title Loan Laws - Filing A Complaint Against Your Lender

All borrowers are entitled to due process by their lender, and you have rights as a consumer protected by state laws. If there's ever a situation where you feel you've been taken advantage of or have not been treated per Florida lending laws, then you may want to consider filing a complaint against your title loan company. This entails sending a letter to the state's Office of Financial Regulation detailing your concern.


Protecting Your Rights As A Borrower In Florida

There are always certain risks when applying for a title loan. This may seem like it goes without saying, but some people get easily persuaded by title loan companies and borrow more than they need.

Ensure you know all the fees and terms of your loan agreement before signing off on your contract. Lastly, check to see if there are any problems with your vehicle before pledging your car as collateral for a title loan with a lender in Florida.