Are car title loans legal in Florida?

I live in Florida. One of my friends said title loans are illegal. Another said they're not. I'm pretty sure I've seen title loan shops. Are car title loans legal in Florida?

Answer
Car title loans are legal in Florida, but Florida has enacted laws to restrict them to protect borrowers from predatory practices like high interest rates and short term lengths, among other things.
There’s the Florida Title Loan Act, which requires title loan lenders to be licensed. It also requires the lender to draft an agreement before giving you the loan that details the total you will borrow and the interest rate.
The other law is called Chapter 537, which relates to repossession. It requires lenders to talk to you about their legal rights to repossess and sell your car. They are also obligated to let you know before the loan reaches this point to give you a chance to keep your car.
Providing you that heads up also gives you a chance to do the handover yourself, which allows you time to remove personal items from the car. They must reach out to you 10 days before they sell your car to give you a chance to get it back, as well.
Florida also offers tools to assist you in case a lender doesn’t follow the laws. You can reach out to:
  • Florida Office of Financial Regulation via their website flofr.com or by phone at 1-850-487-9687
  • Florida’s Attorney General’s Office via its website myfloridalegal.com or by phone at 1-866-9-NO-SCAM
If you’re under financial strain, know that you have options other than a title loan. Banks and credit unions offer personal loans. A family member or friend may be willing to extend you a private loan. And you should make sure you’re saving as much money on other bills as possible, starting with your car insurance.
The Jerry app makes it quick and easy to find the best deal on the coverage you need. Jerry will gather competitive quotes from 50+ top insurance companies for free so you can ensure you aren’t overpaying. On average, our users save $879 a year.
Lauren Smith
Answered on Nov 25, 2021
Lauren has written for World Nomads, the Matador Network, Korvia Consulting, and once upon a time Three Fates Games. She graduated from Columbia College of Chicago with a BFA in Creative Writing. After graduating, she moved overseas and lived in South Korea where she spent her free time traveling and going on road trips with friends. She misses the rest stop potatoes and is trying to figure out how to recreate them at home. She's now based outside of Chicago and when she's not writing she spends her free time reading, playing video games, and exploring whenever she can.
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