§ 8A-124.13. Motor vehicle title loan transactions.  


Latest version.
  • (a)

    A title loan lender may engage in a title loan transaction if the following conditions are met:

    (1)

    The title loan lender maintains physical possession of the motor vehicle certificate of title.

    (2)

    The borrower maintains possession of, or control over, the motor vehicle throughout the term of the loan.

    (3)

    The borrower is not required to pay rent or any other charge for the use of the motor vehicle.

    (4)

    The title loan lender holds a current active license issued by the Department pursuant to this division.

    (5)

    The title loan lender delivers to the borrower, at the time the loan is made, a written title loan agreement available in English, Spanish or Creole that contains the following information:

    a.

    The make, model and year of the motor vehicle to which the loan relates.

    b.

    The vehicle identification number, or other comparable identification number, along with the license plate number, if applicable, of the motor vehicle to which the loan relates.

    c.

    The name, address, date of birth, physical description, and social security number of the borrower.

    d.

    The date of the transaction.

    e.

    The identification number and the type of identification, including the issuing agency, accepted from the borrower.

    f.

    The amount of money advanced, designated as the "amount financed."

    g.

    The maturity date of the title loan agreement.

    h.

    The total title loan charge payable on the maturity date, designated as the "finance charge."

    i.

    The total amount, amount financed plus finance charge, which must be paid to redeem the loan property on the maturity date, designated as the "total amount of all payments."

    j.

    The annual percentage rate, computed in accordance with the regulations adopted by the Federal Reserve Board pursuant to the Federal Truth-in-Lending Act.

    k.

    The name and address of the title loan office.

    l.

    The name and address of the Department as well as a Department telephone number to which borrowers may address complaints.

    m.

    A statement printed in not less than fourteen (14) point, bold type that:

    1.

    Your vehicle has been pledged as security for this loan and if you do not repay this loan in full, including the finance charge, YOU WILL LOSE YOUR VEHICLE. YOU ARE ENCOURAGED TO REPAY THIS LOAN AT THE END OF THE LOAN PERIOD. THE LENDER IS NOT REQUIRED TO EXTEND OR RENEW YOUR LOAN.

    2.

    THIS LOAN HAS A VERY HIGH INTEREST RATE. DO NOT COMPLETE THIS LOAN TRANSACTION IF YOU HAVE THE ABILITY TO BORROW FROM ANOTHER SOURCE AT A RATE LOWER THAN TWO AND ONE-HALF PERCENT (2½%) PER MONTH OR AN ANNUAL PERCENTAGE RATE OF THIRTY PERCENT (30%).

    The contract shall contain a blank line below the statement for the initials of the borrower.

    n.

    A statement that "The borrower represents and warrants that the motor vehicle and the certificate of title are not stolen, it has no liens or encumbrances against it, the borrower has the right to enter into this transaction, and the borrower will not attempt to sell the motor vehicle or apply for a duplicate certificate of title while the title loan agreement is in effect."

    o.

    Immediately above the signature of the borrower, a statement that "I, the borrower, declare that the information I have provided is true and correct and I have read and understand the foregoing document."

    p.

    A blank line for the signature of the borrower; and

    (6)

    The title loan lender displays, in a prominent place in the title loan premises, a sign no smaller than three (3) feet by five (5) feet with the following message in letters no less than one (1) inch high: IF YOU RECEIVE A TITLE LOAN, YOUR VEHICLE WILL BE PLEDGED AS SECURITY FOR THE LOAN. IF YOU DO NOT REPAY THIS LOAN IN FULL, INCLUDING ALL FINANCE CHARGES, YOU WILL LOSE YOUR VEHICLE. SHOULD THE VEHICLE BE SOLD, YOU ARE ENTITLED TO ANY PROCEEDS OF THE SALE IN EXCESS OF THE AMOUNT OWED ON THE TITLE LOAN AND THE REASONABLE EXPENSES OF REPOSSESSION AND SALE.

    THIS LOAN HAS A VERY HIGH INTEREST RATE. DO NOT COMPLETE A TITLE LOAN TRANSACTION IF YOU HAVE THE ABILITY TO BORROW MONEY FROM ANOTHER SOURCE AT AN INTEREST RATE LOWER THAN TWO AND ONE-HALF PERCENT (2½%) PER MONTH OR AN ANNUAL PERCENTAGE RATE OF THIRTY PERCENT (30%). IF YOU HAVE A COMPLAINT, YOU MAY CALL THE MIAMI-DADE COUNTY CONSUMER SERVICES DEPARTMENT AT (CURRENT PHONE NUMBER).

    (b)

    No part of this division shall be construed to impair or affect the obligation of any title loan agreement or contract that was lawfully entered into prior to the effective date of this division. A title loan made before the effective date of Ordinance No. 99-36, which was May 7, 1999, may be renewed or extended after the effective date of Ordinance No. 99-36 at the interest rate agreed upon by the parties prior to May 7, 1999 provided:

    (i)

    The previously agreed upon interest rate does not violate chapter 538, Florida Statutes; and

    (ii)

    The title loan agreement in question does not specifically state that the agreement is nonrenewable.

    (c)

    Any title loan made without benefit of a license is void, in which case the person making the title loan forfeits the right to collect any moneys, including principal and interest charged on the title loan, from the borrower in connection with such agreement. The person making the title loan shall return to the borrower the loan property, the titled personal property pledged or the fair market value of such titled personal property, and all principal and interest paid by the borrower. The borrower is entitled to receive reasonable attorney's fees and costs in any action brought by the borrower to recover from the person making the title loan the loan property, the titled personal property, or the principal and interest paid by the borrower.

(Ord. No. 99-62, § 1, 6-8-99)