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 Pasco County
 Code of Ordinances
 Chapter 22. BUSINESSES
 Article III. TITLE LOANS

  § 22-42. Title loan transactions.  

Latest version.

  • A secondhand dealer registered under chapter 538, part 1, Florida Statutes, may engage in motor vehicle title loan transactions, as that term is used in Chapter 538, Part 1, Florida Statutes, if the following conditions are met:

    (1)

    The secondhand dealer maintains physical possession of the motor vehicle certificate of title throughout the term of the loan.

    (2)

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

    (3)

    The borrower shall not be required to pay rent or any other charge for the use of the motor vehicle and shall have the right to cancel the motor vehicle title loan agreement within ten days of its execution upon verbal or written notice of cancellation to the lender and the return of funds borrowed pursuant to the agreement.

    (4)

    The secondhand dealer delivers to the borrower, at the time the loan is made, a written title loan agreement 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 full name, home address, workplace, date of birth, physical description including height, weight, gender, hair color and eye color, of the borrower as verified by identification such as a driver's license or military identification;

    d.

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

    e.

    The date of the transaction;

    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 number of payments required;

    j.

    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;"

    k.

    The rate of interest expressed in terms of the annual percentage rate, computed in accordance with the regulations adopted by the Federal Reserve Board pursuant to the Federal Truth-In-Lending Act;

    l.

    The name and address of the title loan business;

    m.

    A statement which provides the following:

    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 30 DAY PERIOD. THE LENDER IS NOT REQUIRED TO EXTEND OR RENEW YOUR LOAN. IT IS IMPORTANT THAT YOU PLAN YOUR FINANCES SO THAT YOU CAN REPAY THIS LOAN AS SOON AS POSSIBLE.

    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 18 PERCENT PER MONTH FOR THREE MONTHS, THEREAFTER 2 PERCENT PER MONTH OR 72 PERCENT APR.

    n.

    A statement that "The borrower represents and warrants that the motor vehicle and the certificate of title is 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, the statement "I, the borrower, declare that the information I have provided is true and correct and I have read and understand the foregoing document. I also understand that I may cancel this contract within ten days of today's date if I return all money I am borrowing under this contract to the lender within the same ten days;"

    p.

    A blank line for the signature of the borrower.

    (5)

    A secondhand dealer must display in a prominent place on the title loan office premises, for customer viewing, a sign no smaller than three feet by five feet with the following message and in letters no less than four inches 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. 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 72 PERCENT PER YEAR."

    (6)

    No part of this article 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 article.

(Ord. No. 99-19, § 4, 9-28-99)