§ 8A-124.14. Maximum interest rate and charges.  

Latest version.
  • (a)

    A title loan lender may charge a maximum interest rate of two and one-half (2½) percent per thirty (30) day period the title loan agreement remains outstanding and unsatisfied provided, however, that said maximum interest rate shall not exceed a maximum annual interest rate of thirty (30) percent. The maximum interest rate provided for herein shall, upon the effective date of this section, supersede the maximum interest rate established by Ordinance No. 99-36. In determining compliance with the maximum interest and finance charges, the computation must be simple interest and not add-on interest or any other interest computation.


    The annual percentage rate that may be charged in a title loan transaction may equal, but not exceed, the annual percentage rate that must be computed and disclosed as required by the Federal Truth in Lending Act and Regulation Z of the Board of Governors of the Federal Reserve System. When the period for which the charge is computed is more or less than one (1) month, the maximum rate for the period must be computed on the basis of one-thirtieth ( 1/30 ) the applicable monthly interest rate, multiplied by the number of days of the period.


    Any transaction involving a borrower's delivery of a motor vehicle certificate of title in exchange for the advancement of funds on the condition that the borrower shall or may redeem or repurchase the certificate of title upon the payment of a sum of money, whether the transaction be characterized as a "buy-sell agreement," "sale-leaseback agreement," or otherwise, shall be deemed a violation of this division if such sum exceeds the amount that a title loan lender may collect in a title loan agreement under this division or if the terms of the transaction otherwise conflict with the permitted terms and conditions of a title loan agreement under this division.


    No charges, including interest, in excess of the combined total of all charges permitted by this section shall be allowed. Notwithstanding the foregoing, a title loan lender may charge a one-time fee equivalent to the amount actually paid by the title loan lender to record a lien securing the title loan lender's interest in the motor vehicle certificate of title owned by the borrower.


    It shall be unlawful for secondhand dealers as defined in Section 538.03, Florida Statutes (1997), as same may be amended from time to time, to charge an interest rate on a motor vehicle title loan transaction entered into after the effective date of the ordinance from which this subsection derives greater than eighteen (18) percent, as provided in Section 687.03, Florida Statutes. Motor vehicle title loan transaction means a loan of money secured by bailment of a certificate of title to a motor vehicle where the borrower maintains possession of, or control over, the motor vehicle throughout the term of the loan, and the borrower is not required to pay rent or any other charge for the use of the motor vehicle.

(Ord. No. 99-36, § 1, 4-27-99; Ord. No. 99-62, § 1, 6-8-99)

Editor's note

The maximum interest rate provided for in Ord. No. 99-36, § 1, adopted April 27, 1999, and codified in subsection 8A-124.14(e) has been superseded by Ord. No. 99-62, § 1, adopted June 8, 1999, codified in subsection 124.14(a).