What a title loan costs — before Florida’s rules
A title loan is usually a single-payment loan due in 15–30 days at around 25% per month — roughly 300% APR — secured by your vehicle. The defining risk is not the rate but the collateral: miss a payment and the lender can repossess the car, and research finds about one in five borrowers eventually loses the vehicle. Where a state caps rates low, single-payment title lending is not offered and a loan above the cap is generally void.
The law in Florida
- Rate cap
- Florida Title Loan Act: simple interest of 30%/yr on the first $2,000 of principal, 24%/yr on $2,000–$3,000, and 18%/yr above $3,000 (Fla. Stat. 537.011). Many operators instead lend under the Consumer Finance Act (Fla. Stat. ch. 516) and add fees.
- Key law
- Florida Title Loan Act, Fla. Stat. ch. 537 (rate schedule at 537.011); consumer-finance alternative under Fla. Stat. ch. 516.
- Enforcement
- The Florida Office of Financial Regulation, Division of Consumer Finance, licenses title loan lenders under ch. 537 and consumer finance lenders under ch. 516. Acting as a title loan lender without a license is prohibited.
Fla. Stat. 537.011 caps title loan interest at 30% per year on the first $2,000 of principal, 24% on $2,000–$3,000, and 18% above $3,000, computed as simple interest.
What it means for a Florida borrower
Florida permits car title loans but caps interest on a true Title Loan Act loan at 30% per year on the first $2,000. Because of that cap, many storefront lenders instead license under the consumer-finance law (Chapter 516) and add fees, which can push the effective cost much higher. Check which law your lender is licensed under and read the fee schedule closely.
If you already have a title loan in Florida
A loan that violates Florida’s rate limits may be partly or fully unenforceable — which changes your options with the lender and any collector. This is general information, not legal advice.
- Check whether the lender is licensed in Florida — many high-cost online lenders are not.
- Revoke ACH authorization in writing to stop automatic withdrawals from your account.
- File a complaint with the Florida attorney general and the CFPB.
- Ask whether the balance is even collectable under Florida law before you pay a collector.
Cheaper first — try these before a title loan in Florida
Title Loans and tribal lenders in Florida
Many online lenders that market title loans to Florida residents are tribal lenders arguing their sovereignty places them outside state rate caps — a separate legal question this site tracks in depth. For which tribal brands lend to Florida residents and how state law applies to them, see the Florida tribal-lending page.
Tribal loans in Florida →Frequently asked questions
Are title loans legal in Florida?
In Florida, title loans are allowed only under limits — a rate cap, an installment structure, or consumer-finance licensing — so a legal title loan costs less and looks different from the ~300% single-payment norm, and any lender exceeding those limits is out of compliance.
What is the maximum title loan rate in Florida?
Florida Title Loan Act: simple interest of 30%/yr on the first $2,000 of principal, 24%/yr on $2,000–$3,000, and 18%/yr above $3,000 (Fla. Stat. 537.011). Many operators instead lend under the Consumer Finance Act (Fla. Stat. ch. 516) and add fees.
What can I do about a title loan I already have in Florida?
Because Florida restricts high-cost title loans, a loan that exceeds the state limit may be partly or fully uncollectible. Check whether the lender is licensed in Florida — many high-cost online lenders are not. This is general information, not legal advice.