2009 - 2010 LEGISLATURE
SENATE AMENDMENT 1,
TO ASSEMBLY AMENDMENT 2,
TO 2009 SENATE BILL 530
April 22, 2010 - Offered by Senator
8138.16 Title loans. (1)
In this section:
(a) "Division" means the division of banking attached to the department of 10
(b) "Licensed lender" means a person licensed under s. 138.09.
(c) "Title loan" means a loan of $25,000 or less to a borrower, who obtains or 13
seeks to obtain the loan for personal, family, or household purposes, that is, or is to 14
be, secured by an interest, other than a purchase money security interest, in the 15
borrower's motor vehicle, and that has an original term of not more than 6 months.
16(2) Loan principal and interest.
(a) No licensed lender may make a title loan 17
to a borrower that results in the borrower having liability for the loan, in principal, 18
of more than 50 percent of the value of the motor vehicle used as security for the loan. 19
The division shall promulgate rules for determining the value of a motor vehicle for 20
purposes of this paragraph, including rules specifying pricing guides that may be 21
used for determining value.
(b) 1. This section imposes no limit on the interest that a licensed lender may 23
charge before the maturity date of a title loan.
2. If a title loan is not paid in full on or before the maturity date, a licensed 2
lender may charge, after the maturity date, interest at a rate not exceeding 2.75 3
percent per month. Interest earned under this subdivision shall be calculated at the 4
rate of one-thirtieth of the monthly rate charged for each calendar day that the 5
balance of the loan is outstanding. Interest may not be assessed on any interest 6
earned under this subdivision.
A borrower may rescind a title loan, before the close of business 8
on the next day of business after the loan is made, or, if the place of business where 9
the loan is made is open 24 hours, before 5 p.m. on the next day of business after the 10
loan is made, by returning to the licensed lender the proceeds of the loan. The 11
licensed lender may not charge the borrower any fee for rescinding the title loan as 12
provided in this subsection.
13(4) Other requirements.
(a) A licensed lender may not make a title loan to a 14
borrower that is secured by an interest in a motor vehicle if the motor vehicle is 15
subject to another security interest under another title loan made by the licensed 16
lender or another licensed lender and the borrower is liable for repayment on the 17
other title loan.
(b) A licensed lender may not require a borrower to provide the licensed lender 19
with a key or copy of a key to a motor vehicle used as security for a title loan as a 20
condition for making the title loan to the borrower.
(c) A licensed lender or person acting on behalf of a licensed lender may not take 22
possession of a motor vehicle used as security for a title loan to a borrower without 23
serving notice on the borrower at least 15 days prior to taking possession. The notice 24
shall state the intent to take possession and describe the basis for the right to take
possession. This paragraph does not apply to possession that is obtained by a 2
borrower's voluntary surrender of a motor vehicle.
(d) A licensed lender or other person may charge a borrower a reasonable 4
storage fee for a motor vehicle of the borrower of which the licensed lender or person 5
acting on behalf of the licensed lender has obtained possession, including possession 6
that is obtained by voluntary surrender.
(e) A licensed lender shall return to a borrower the amount of any proceeds from 8
the disposition of a motor vehicle used as security for a title loan to the borrower that 9
exceed the borrower's liability to the licensed lender for the loan.
(f) A borrower is not liable to a licensed lender for any deficiency resulting from 11
the licensed lender's disposition of a motor vehicle used as security for a title loan, 12
unless the borrower has done any of the following:
1. Impaired the licensed lender's security interest by intentionally damaging 14
or destroying the motor vehicle.
2. Intentionally concealed the motor vehicle.
3. Pledged to the licensed lender a motor vehicle that is already encumbered 17
by an undisclosed prior lien.
4. Subsequent to obtaining the title loan, pledged or sold to a third party a 19
motor vehicle used as security for a title loan without the licensed lender's written 20
The treatment of section 138.14 of the statutes first applies to payday 2
loans, as defined in section 138.14 (1) (k) of the statutes, as created by this act, made 3
on the effective date of this subsection.
The treatment of section 138.16 of the statutes first applies to title loans, 5
as defined in section 138.16 (1) (c) of the statutes, as created by this act, made on the 6
effective date of this subsection.".".