There comes a point in time when you need money and you have to maximize on every opportunity available to acquire it. Title loans are part of the options available for getting your hands on some money. In case you are ignorant about what a Title Loan is, it’s simply a loan you acquire by offering your vehicle’s title as collateral. It could be either your car, motorcycle, or even your boat. Title Loans are not a thing for everyone. In fact, as you read this, around 25 states have banned the issuing of Title Loans. That’s because things can get out of hand if you’re dealing with the wrong people. But since you are in Florida – one of the states where Title Loans are legal – you have the privilege of enjoying some of the benefits they provide. Here’s is what you should know if you decide to go down this road.
- Look and Ask Around
The first thing in choosing a Title Loan Company in Florida is to do some research by yourself. Thanks to the golden age we are in, the internet has made doing research considerably simple and fast. Almost all significant Title Loan Companies in Florida are likely to have a website. So just from the comfort of your home, you can do a search for “title loans Florida” to find the best Title Loan Companies that are close to where you live and compare the offers that they make.
Another option for doing research, particularly one that will save you even more time, is to consult with any friends or acquaintances whom you know. The good thing about asking friends or other people within your connections is that they will recommend companies that they have already worked with or that they are certain they have a good reputation. This way, the task of confirming the credibility of the companies you’d like to ask the loan from will be made easier for you.
Ensure that whatever company you find online is actually based in Florida. Our state has laws that govern Title Loans. By ensuring that the companies you are dealing with are indeed within Florida, you will be ascertaining that they are also bound by the laws of the state. Therefore, in case something goes wrong later, the state laws may be able to help. If you deal with companies outside the state of Florida, if something goes wrong, you are likely to be on your own. Better safe than sorry.
- Credibility and Reputation
Once you have a few companies that you would like to get a loan from, the next thing you should do is ensure that those companies are what they say they are. In Florida, particularly companies that offer Title Loans must be licensed and legit. This is one of the things you can confirm to ascertain that you are working with a company that’s recognized by the state.
Also, Title Loan companies that have confidence in their practice will include a valid testimonials area on their website. If this is true with the websites you are visiting, check these sections out and see what other people are saying regarding their experience with the company. If there is no testimonials section in the respective websites, you can also do a search for any company you are interested in and discover what other people are saying about their experience with them.
- Interest Rates and Hidden Fees
Interest rates are a standard as far as loans are concerned. But you should not bite more than you can chew. Consider the various companies available and compare the interest rates involved in the various title loans they provide. It’s common sense that you should choose the company that will be the most flexible and that will not take unnecessary money from your pockets.
Hidden fees can be dangerous. So make sure you read any fine print in the contracts you sign. In fact, ensure you know the contract you are signing inside out. Involve a friend if necessary. Just make sure you know what you are signing up for. Many people have lost their vehicles and more because they ignored this simple principle.
It was indicated earlier that Title Loans are banned in around 25 states in America. The reason is that there are some Title Loan Companies that have made the lives of thousands of people miserable just because of a small loan. People have lost their vehicles and even more as a result. You don’t want to be part of this statistic. Even with the laws of Florida protecting borrowers and ensuring that Title Loan Companies do honest business, don’t assume anything. There may be loopholes that can be exploited and you may get hurt. Ensure that the interest rates involved in a loan you are interested in are reasonable and that there are no hidden fees that may come to surprise you later.
- What Does the Florida State Law Say About Title Loans?
It’s beneficial for you to know what the Florida law states about Title Loans. They say that ignorance is bliss, but this is one of those instances where it isn’t. Knowing what you are entitled to will help you know when a company is trying to scam you in any way, manner, or form. Here are a few things you should know:
The Florida Title Loan Act: in our state, there are two laws that govern car title loans under the Florida Title Loan Act; Chapter 516 and 537. Chapter 516 declares that a written agreement has to exist between the parties involved in the title loan and that it must incorporate the repercussions if the loan is not paid. Chapter 537 demands that the lender has to give the borrower a written statement of policies and accounts.
According to the act, all Title Loan Companies must be licensed and the license has to be renewed every two years. Title loan companies must adhere to rigid rules that guard consumers against negligence, misrepresentation, and fraud.
In Florida, the highest simple interest charges for title loans are 30% per annum. The percentage goes down to 24% in the event the collateral is worth more than $2000, and 18% if the collateral is valued at more $3000.
On the off chance, an individual has complains regarding their title loan agreement, they are eligible to confer with the Department of Financial Services.
Consider the above four points while choosing a title loan company in Florida and all be fine. Neglect them and only blame yourself when things don’t go your way.
