Why Are Car Title Loans Illegal In Florida?

[treasigh]

I just tried to get a auto title loan and I was told that they had been illegal in Florida. Does any person know why this is?

[Gerd]

ChicagoTRS said: 3 "predatory lending" 52 months ago

[Witt]

TheLightWorks said: 2 As Gary said, it's because title loan dealers are very closely related to loan sharks. it's the dealers who got banned. 52 months ago

[Radburn]

Must be...  Must be an oversight.     There are darn few consumer protection laws in Florida.  Maybe this one got passed by accident.   Do you realize what a title loan means?     If you bought the car with your typical high-interest car loan, you have paid very, very dearly for that title.  Like two to three times the sticker price of the car.   And most title loans will not give you any more than 30% of the car's value.  Plus the interest rate they charge is unbeleivable, like up to 300% a year!     So you've already paid two or three times the sticker price for the car, gotten back maybe 10% what you've paid, and you continue to pay the sticker price of the car every year, plus risk losing it all.            This is about the very worst kind of deal I can imagine that does not lose you some fingers or other valued appendages.             Ancient_Hacker 52 months ago Please sign in to give a compliment. Please verify your account to give a compliment. Please sign in to send a message. Please verify your account to send a message.

[Newman]

"predatory lending"

[Garnell]

Gary4books said: 1 Becasue they are very close to stealing your money. People who can not pay their bills this week, will not be better off if they have less money and more bills next week. 52 months ago

[Alberic]

As Gary said, it's because title loan dealers are very closely related to loan sharks. it's the dealers who got banned.

[Chanler]

Becasue they are very close to stealing your money. People who can not pay their bills this week, will not be better off if they have less money and more bills next week.

[Washington]

 Must be an oversight.     There are darn few consumer protection laws in Florida.  Maybe this one got passed by accident.   Do you realize what a title loan means?     If you bought the car with your typical high-interest car loan, you have paid very, very dearly for that title.  Like two to three times the sticker price of the car.   And most title loans will not give you any more than 30% of the car's value.  Plus the interest rate they charge is unbeleivable, like up to 300% a year!     So you've already paid two or three times the sticker price for the car, gotten back maybe 10% what you've paid, and you continue to pay the sticker price of the car every year, plus risk losing it all.            This is about the very worst kind of deal I can imagine that does not lose you some fingers or other valued appendages.            

[Rodric]

I think you should all get your facts straight. Title loans are not illegal in Florida. They are regulated under consumer finance laws. Section 516 of the Fl. Statutes. Further, companies that partake in the title lending industry, must abide by the interest laws regulated by the state. No company can charge anymore than 30-22% APR. The amount of interest charged, depends on the size of the loan. I am a person that has worked in the title loan industry, and has used the title loan industry for credit. Speaking unbiased from both sides; I can truley say, that I understand why these companies must charge the interest rates they do. If they did not, they would go out of business. In a normal credit situation, when 10% of your customers default on loans, you are liquidating everything, and the doors are closing. That's a wrap! Doors closed. Anyway, I've seen both sides of the spectrum, and I believe title loans are a great tool, when used properly.Thanks   android-confused 23 months ago