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The Laws Regarding Title Loans

The LawCar title loans can be an excellent source of emergency funds, and they can be obtained by people with any credit score. It does not matter whether you have good credit, bad credit, or no credit at all. Car title loans use your car’s title to secure the loan. Before you get a car title loan though, it is important that you research and understand all of the regulations involving car title loans.

Each state has their own specific laws and regulations regarding car title loans. They can vary pretty drastically from one state to another. Florida, for example, sets the maximum interest rates based on the amount borrowed. Companies are only allowed to charge up to 30% for loans up to $2,000, up to 24% for loans from $2,000 to $3,000, and up to 18% on loans over $3,000. These laws and regulations can change from year to year, so it is always wise to check them before applying for any loan.

Agreements

Another thing to understand is that Florida law requires that the lender and borrower sign an agreement. This agreement must clearly list the terms of the loan including the amount borrowed, interest owed on the loan, and the amount of money that the borrower is obligated to pay back in order to meet the terms of the agreement. Always read the agreement fully before you sign and never take a loan based off of a verbal agreement.

Assets

Finally, in the event that something catastrophic happens and you are unable to pay back the loan, the lender has the right to repossess your car. They must, however, provide you a notice at least 10 days in advance of any sale of the car. During this time, you have the right to get your car back by making a full payment to satisfy the terms of the original agreement.

These are the basics regarding most car title loans. Most auto title loan companies are honest and upfront. Disagreements are most often because the consumer didn’t take the time to understand the requirements of the loan they signed up for, or their rights. If you take the time to understand the laws and regulations within your state beforehand, then you will find a car title loan is one of the best loans out there for emergency funds. For more information, call Embassy Loans and ask any of the team about a car title loan.



Embassy Loans is a leading provider of auto title loans since 2005

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Embassy Loans Inc. is licensed under the “Florida Consumer Finance Act” and as such Embassy Loans is exempt from any licensing requirements under the “Florida Title Loan Act” to the extent that any of Embassy Loans’ activities involve the making of a loan of money to a consumer secured by bailment of a certificate of title to a motor vehicle.

Monthly Interest Rates range from 1.5% to 2.5% (18% to 30% APR), with 15-18 Month Terms.

No Prepayment Penalties!

Embassy Loans uses “Title Loans” for advertisement purposes only and provides auto equity loans. Embassy Loans Inc. is licensed under the “Florida Consumer Finance Act” under Florida Statute 516 and as such Embassy Loans is exempt from any licensing requirements under the “Florida Title Loan Act” to the extent that any of Embassy Loans’ activities involve the making of a loan of money to a consumer secured by bailment of a certificate of title to a motor vehicle.

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Frequently Asked Questions

What is an Auto Equity Loan?

An auto equity loan, sometimes known as a car title loan or a car equity loan, is a type of loan that allows you to borrow money by using your vehicle as collateral. The loan is secured by your vehicle, meaning you agree to use the equity in your car to back the loan. 

What is an Unsecured Personal Loan

An unsecured personal loan is a loan that does not require collateral. Funds are provided based on your credit worthiness and your ability to repay. 

What Is the Credit Builder Program

The credit builder program is designed to help individuals establish or improve their credit score with the primary purpose of building a positive credit history through regular payments.

Can i have more than one Loan at a time?

Embassy Loans can only extend one loan at a time and it’s advisable to start with one and focus on making payments in a timely manner to prevent default.

What happens if I miss a payment?

Missing a payment can have negative consequences, including late fees, a drop in your credit score, and potential default on the loan. Consistent, on-time payments are crucial to benefit from the program.