Bill Text: FL H0877 | 2011 | Regular Session | Introduced

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Bill Title: Title Loans

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-03-22 - Unfavorable by Business and Consumer Affairs Subcommittee, laid on Table; YEAS 1 NAYS 12 -HJ 1982 [H0877 Detail]

Download: Florida-2011-H0877-Introduced.html

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HB 877

1	A bill to be entitled
2	An act relating to title loans; amending s. 494.00797,
3	F.S.; exempting certain persons from specified financial
4	and lending regulations adopted by counties and
5	municipalities; amending s. 537.001, F.S.; conforming a
6	short title; amending s. 537.002, F.S.; revising
7	legislative intent; providing that regulation of title
8	loans is preempted to the state; amending s. 537.003,
9	F.S.; revising and providing definitions; transferring
10	regulation of title loans from the Office of Financial
11	Regulation to the Department of Agriculture and Consumer
12	Services; amending s. 537.004, F.S.; prohibiting certain
13	activities at or within a certain proximity of title loan
14	offices; providing for deposit of certain moneys in the
15	General Inspection Trust Fund; amending s. 537.005, F.S.;
16	conforming provisions; amending s. 537.006, F.S.; revising
17	the grounds for disciplinary action against title loan
18	lenders; amending s. 537.007, F.S.; conforming provisions;
19	amending s. 537.008, F.S.; revising requirements for title
20	loan agreements, for transferring possession of the motor
21	vehicle's certificate of title, and for the recording and
22	releasing of liens against the motor vehicle; amending s.
23	537.009, F.S.; conforming provisions; amending s. 537.011,
24	F.S.; revising requirements for the accrual of interest on
25	title loans; prohibiting the extension, renewal, and
26	refinancing of title loans; authorizing certain fees and
27	charges associated with title loans; amending s. 537.012,
28	F.S.; revising requirements for the repossession and sale
29	of motor vehicles to satisfy unpaid title loans and for
30	the disbursement of excess proceeds from such sales to the
31	borrowers; limiting the liability of borrowers for unpaid
32	title loans; authorizing a title loan lender to seek money
33	damages against a borrower under certain circumstances;
34	amending s. 537.013, F.S.; revising and providing
35	additional prohibited acts by title loan lenders or any
36	agents or employees thereof, to which penalties apply;
37	amending s. 537.014, F.S.; revising requirements for
38	rescission of a title loan agreement; deleting procedures
39	for lost, destroyed, or stolen tile loan agreements;
40	deleting a provision prohibiting a title loan lender from
41	imposing a fee for providing the borrower with a copy of
42	the title loan agreement; amending ss. 537.015, 537.016,
43	and 537.017, F.S.; conforming provisions; repealing s.
44	537.018, F.S., relating to the authority of counties and
45	municipalities to adopt more restrictive ordinances
46	regulating title loans; providing an effective date.
47
48	Be It Enacted by the Legislature of the State of Florida:
49
50	Section 1.  Subsection (1) of section 494.00797, Florida
51	Statutes, is amended to read:
52	494.00797  General rule.-All counties and municipalities of
53	this state are prohibited from enacting and enforcing
54	ordinances, resolutions, and rules regulating financial or
55	lending activities, including ordinances, resolutions, and rules
56	disqualifying persons from doing business with a city, county,
57	or municipality based upon lending interest rates or imposing
58	reporting requirements or any other obligations upon persons
59	regarding financial services or lending practices of persons or
60	entities, and any subsidiaries or affiliates thereof, who:
61	(1)  Are subject to the jurisdiction of the office or the
62	Department of Agriculture and Consumer Services, including for
63	activities subject to this chapter, except entities licensed
64	under s. 537.004;
65
66	Proof of noncompliance with this act can be used by a city,
67	county, or municipality of this state to disqualify a vendor or
68	contractor from doing business with a city, county, or
69	municipality of this state.
70	Section 2.  Section 537.001, Florida Statutes, is amended
71	to read:
72	537.001  Short title.-This chapter act may be cited as the
73	"Florida Title Loan Act."
74	Section 3.  Section 537.002, Florida Statutes, is amended
75	to read:
76	537.002  Legislative intent; application; preemption.-
77	(1)  It is the intent of the Legislature in the creation of
78	this chapter that title loans to consumers be regulated by the
79	provisions of this chapter act. The provisions of This chapter
80	supersedes act supersede any provision other provisions of state
81	law affecting title loans to the extent of any conflict.
82	(2)  The regulation of all aspects of the business of
83	offering title loans as provided in this chapter is preempted to
84	the state. Any such regulation adopted by a county or
85	municipality, regardless of when adopted, is void.
86	Section 4.  Section 537.003, Florida Statutes, is amended
87	to read:
88	537.003  Definitions.-As used in this chapter act, the term
89	unless the context otherwise requires:
90	(1)  "Commercially reasonable" has the same meaning as used
91	in part VI part V of chapter 679. In addition, nonpublic sales
92	or disposal of personal property between a title loan lender and
93	any business affiliates of a title loan lender or a member of a
94	title loan lender's family are presumed not to be made in a
95	commercially reasonable manner.
96	(2)  "Commission" means the Financial Services Commission.
97	(2)(3)  "Consumer" means an individual borrowing money for
98	personal, family, or household purposes.
99	(3)  "Department" means the Department of Agriculture and
100	Consumer Services.
101	(4)  "Division" means the Division of Consumer Services of
102	the department.
103	(4)  "Office" means the Office of Financial Regulation of
104	the commission.
105	(5)  "Executive officer" means the president, chief
106	executive officer, chief financial officer, chief operating
107	officer, executive vice president, senior vice president,
108	secretary, and treasurer.
109	(6)  "Identification" means a government-issued
110	photographic identification.
111	(7)  "Interest" means the cost of obtaining a title loan
112	and includes any profit or advantage of any kind whatsoever that
113	a title loan lender may charge, contract for, collect, receive,
114	or in any way obtain as a result of a title loan.
115	(8)  "License" means a permit issued under this chapter act
116	to make or service title loans in accordance with this chapter
117	act at a single title loan office.
118	(9)  "Licensee" means a person who is licensed as a title
119	loan lender.
120	(10)  "Loan property" means any motor vehicle certificate
121	of title that is deposited with a title loan lender as a
122	security for a title loan in the course of the title loan
123	lender's business.
124	(10)(11)  "Motor vehicle" means an automobile, motorcycle,
125	mobile home, truck, trailer, semitrailer, truck tractor and
126	semitrailer combination, or any other vehicle operated on the
127	public highways and streets of this state, used to transport
128	persons or property, and propelled by power other than muscular
129	power, but excluding a vehicle which runs only upon a track and
130	a mobile home that is the primary residence of the owner.
131	(11)(12)  "Title loan" or "loan" means a loan of money to a
132	consumer secured by a nonpurchase money security interest in
133	bailment of a certificate of title to a motor vehicle, except
134	such loan made by a person licensed under chapter 516, chapter
135	520, chapter 655, chapter 657, chapter 658, chapter 660, chapter
136	663, chapter 665, or chapter 667 or a person who complies with
137	s. 687.03.
138	(12)(13)  "Title loan agreement" or "agreement" means a
139	written agreement in which a title loan lender agrees to make a
140	title loan to a borrower.
141	(13)(14)  "Title loan lender" or "lender" means any person
142	who engages in the business of making or servicing title loans.
143	(14)(15)  "Title loan office" means the location at which,
144	or premises from which, a title loan lender regularly conducts
145	business under this chapter or any other location that is held
146	out to the public as a location at which a lender makes or
147	services title loans.
148	(16)  "Titled personal property" means a motor vehicle that
149	has as evidence of ownership a state-issued certificate of title
150	except for a mobile home that is the primary residence of the
151	borrower.
152	(15)(17)  "Ultimate equitable owner" means a person who,
153	directly or indirectly, owns or controls an ownership interest
154	in a corporation, a foreign corporation, an alien business
155	organization, or any other form of business organization,
156	regardless of whether such person owns or controls such
157	ownership interest through one or more persons or one or more
158	proxies, powers of attorney, nominees, corporations,
159	associations, partnerships, trusts, joint stock companies, or
160	other entities or devices, or any combination thereof.
161	Section 5.  Section 537.004, Florida Statutes, is amended
162	to read:
163	537.004  License required; license fees.-
164	(1)  A person may not act as a title loan lender or own or
165	operate a title loan office unless such person has an active
166	title loan lender license issued by the division office under
167	this chapter act. A title loan lender may not own or operate
168	more than one title loan office unless the lender obtains a
169	separate title loan lender license for each title loan office. A
170	title loan lender may not own or operate a title loan office
171	that:
172	(a)  Offers or makes deferred presentment transactions as
173	defined in s. 560.402; or
174	(b)  Is located within 1,000 feet of any location owned or
175	operated by a person who shares a common ultimate equitable
176	ownership interest with the title loan lender, if title loans or
177	deferred presentment transactions are offered or made at such
178	location.
179	(2)  A person applying for licensure as a title loan lender
180	shall file with the division office an application, the bond
181	required by s. 537.005(3), a nonrefundable application fee of
182	$1,200, a nonrefundable investigation fee of $200, and a
183	complete set of fingerprints taken by an authorized law
184	enforcement officer. The division office shall submit such
185	fingerprints to the Department of Law Enforcement for state
186	processing, and the Department of Law Enforcement shall forward
187	the fingerprints to the Federal Bureau of Investigation for
188	national processing.
189	(3)  If the division office determines that an application
190	should be approved, the division office shall issue a license
191	for a period not to exceed 2 years.
192	(4)  A license must shall be renewed biennially by filing a
193	renewal form and a nonrefundable renewal fee of $1,200. A
194	license that is not renewed by the end of the biennial period
195	shall automatically reverts revert to inactive status. An
196	inactive license may be reactivated within 6 months after
197	becoming inactive by filing a reactivation form, payment of the
198	nonrefundable $1,200 renewal fee, and payment of a nonrefundable
199	reactivation fee of $600. A license that is not reactivated
200	within 6 months after becoming inactive may not be reactivated
201	and shall automatically expires expire. The department
202	commission shall adopt rules establishing establish by rule the
203	procedures for the renewal and reactivation of a license and
204	prescribing shall adopt a renewal form and a reactivation form.
205	(5)  Each license must be conspicuously displayed at the
206	title loan office. When A licensee must give the division
207	written notice before moving wishes to move a title loan office
208	to another location, the licensee shall provide prior written
209	notice to the office.
210	(6)  A license issued under pursuant to this chapter act is
211	not transferable or assignable.
212	(7)  Each licensee must shall designate and maintain a
213	registered agent in this state for service of process.
214	(8)  Whenever A person or a group of persons who, directly
215	or indirectly, or acting by or through one or more persons,
216	purchases proposes to purchase or acquires acquire a 50-percent
217	50 percent or more interest in a licensee, must such person or
218	group shall submit an initial application for licensure under
219	this chapter before act prior to such purchase or acquisition.
220	(9)  The department commission may adopt rules authorizing
221	the to allow for electronic filing of applications, fees, and
222	forms required by this chapter act.
223	(10)  All moneys collected by the division office under
224	this chapter act shall be deposited into the General Inspection
225	Regulatory Trust Fund of the department office.
226	Section 6.  Section 537.005, Florida Statutes, is amended
227	to read:
228	537.005  Application for license.-
229	(1)  A verified application for licensure under this
230	chapter act, in the form prescribed by department commission
231	rule, must shall:
232	(a)  Contain the name and the residence and business
233	address of the applicant. If the applicant is other than a
234	natural person, the application must shall contain the name and
235	the residence and business address of each ultimate equitable
236	owner of 10 percent or more of such entity and each director,
237	general partner, and executive officer of such entity.
238	(b)  State whether any individual identified in paragraph
239	(a) has, within the last 10 years, pleaded nolo contendere to,
240	or has been convicted or found guilty of, a felony, regardless
241	of whether adjudication was withheld.
242	(c)  Identify the county and municipality with the street
243	and number or location where the business is to be conducted.
244	(d)  Contain additional information as the department
245	commission determines by rule to be necessary to ensure
246	compliance with this chapter act.
247	(2)  Notwithstanding subsection (1), the application need
248	not state the full name and address of each officer, director,
249	and shareholder if the applicant is owned directly or
250	beneficially by a person who as an issuer has a class of
251	securities registered pursuant to s. 12 of the Securities
252	Exchange Act of 1934 or, pursuant to s. 13 or s. 15(d) of such
253	act, is an issuer of securities which is required to file
254	reports with the Securities and Exchange Commission, if the
255	person files with the division office any information,
256	documents, and reports required by such act to be filed with the
257	Securities and Exchange Commission.
258	(3)  An applicant for licensure shall file with the
259	division office a bond, in the amount of $100,000 for each
260	license, with a surety company qualified to do business in this
261	state. However, in no event shall the aggregate amount of the
262	bond required for a single title loan lender may not exceed $1
263	million. In lieu of the bond, the applicant may establish a
264	certificate of deposit or an irrevocable letter of credit in a
265	financial institution, as defined in s. 655.005, in the amount
266	of the bond. The original bond, certificate of deposit, or
267	letter of credit must shall be filed with the division office,
268	and the department must office shall be the beneficiary to that
269	document. The bond, certificate of deposit, or letter of credit
270	must shall be in favor of the department office for the use and
271	benefit of any consumer who is injured pursuant to a title loan
272	transaction by the fraud, misrepresentation, breach of contract,
273	financial failure, or violation of any provision of this chapter
274	act by the title loan lender. Such liability may be enforced
275	either by proceeding in an administrative action or by filing a
276	judicial suit at law in a court of competent jurisdiction.
277	However, in such court suit, the bond, certificate of deposit,
278	or letter of credit posted with the division is office shall not
279	be amenable or subject to any judgment or other legal process
280	issuing out of or from such court in connection with such
281	lawsuit, but such bond, certificate of deposit, or letter of
282	credit is shall be amenable to and enforceable only by and
283	through administrative proceedings before the division office.
284	It is the intent of the Legislature that such bond, certificate
285	of deposit, or letter of credit shall be applicable and liable
286	only for the payment of claims duly adjudicated by order of the
287	division office. The bond, certificate of deposit, or letter of
288	credit shall be payable on a pro rata basis as determined by the
289	division office, but the aggregate amount may not exceed the
290	amount of the bond, certificate of deposit, or letter of credit.
291	(4)  The division office shall approve an application and
292	issue a license if the division office determines that the
293	applicant satisfies the requirements of this chapter act.
294	Section 7.  Section 537.006, Florida Statutes, is amended
295	to read:
296	537.006  Denial, suspension, or revocation of license.-
297	(1)  The following acts are violations of this chapter act
298	and constitute grounds for the disciplinary actions specified in
299	subsection (2):
300	(a)  Failure to comply with any provision of this chapter
301	act, any rule or order adopted under pursuant to this chapter
302	act, or any written agreement entered into with the division
303	office.
304	(b)  Fraud, misrepresentation, deceit, or gross negligence
305	in any title loan transaction, regardless of reliance by or
306	damage to the borrower.
307	(c)  Fraudulent misrepresentation, circumvention, or
308	concealment of any matter required to be stated or furnished to
309	a borrower under pursuant to this chapter act, regardless of
310	reliance by or damage to the borrower.
311	(d)  Imposition of illegal or unauthorized excessive
312	charges in any title loan transaction.
313	(e)  False, deceptive, or misleading advertising by a title
314	loan lender.
315	(f)  Failure to maintain, preserve, and keep available for
316	examination all books, accounts, or other documents required by
317	this chapter act, by any rule or order adopted under pursuant to
318	this chapter act, or by any agreement entered into with the
319	division office.
320	(g)  Aiding, abetting, or conspiring by a title loan lender
321	with a person to circumvent or violate any of the requirements
322	of this chapter act.
323	(h)  Refusal to provide information upon request of the
324	division office, to permit inspection of books and records in an
325	investigation or examination by the division office, or to
326	comply with a subpoena issued by the division office.
327	(i)  Pleading nolo contendere to or having been convicted
328	or found guilty, regardless of whether adjudication was
329	withheld, of a crime involving fraud, dishonest dealing, or any
330	act of moral turpitude or acting as an ultimate equitable owner
331	of 10 percent or more of a licensee who has pleaded pled nolo
332	contendere to or has been convicted or found guilty, regardless
333	of whether adjudication was withheld, of a crime involving
334	fraud, dishonest dealing, or any act of moral turpitude.
335	(j)  Making or having made material misstatement of fact in
336	an initial or renewal application for a license.
337	(k)  Having been the subject of any decision, finding,
338	injunction, suspension, prohibition, revocation, denial,
339	judgment, or administrative order by any court of competent
340	jurisdiction or administrative law judge, or by any state or
341	federal agency, involving a violation of any federal or state
342	law relating to title loans or any rule or regulation adopted
343	under such law, or has been the subject of any injunction or
344	adverse administrative order by a state or federal agency
345	regulating banking, insurance, finance or small loan companies,
346	real estate, mortgage brokers, or other related or similar
347	industries for acts involving fraud, dishonest dealing, or any
348	act of moral turpitude.
349	(l)  Failing to continuously maintain the bond, certificate
350	of deposit, or letter of credit required under by s. 537.005(3).
351	(m)  Failing to timely pay any fee, charge, or fine imposed
352	or assessed under pursuant to this chapter act or rules adopted
353	under this chapter act.
354	(n)  Having a license or registration, or the equivalent,
355	to practice any profession or occupation denied, suspended,
356	revoked, or otherwise acted against by a licensing authority in
357	any jurisdiction for fraud, dishonest dealing, or any act of
358	moral turpitude.
359	(o)  Having demonstrated unworthiness, as defined by
360	department commission rule, to transact the business of a title
361	loan lender.
362	(2)  Upon a finding by the division office that any person
363	has committed any of the acts set forth in subsection (1), the
364	division office may enter an order taking one or more of the
365	following actions:
366	(a)  Denying an application for licensure under this
367	chapter act.
368	(b)  Revoking or suspending a license previously granted
369	under pursuant to this chapter act.
370	(c)  Placing a licensee or an applicant for a license on
371	probation for a period of time and subject to such conditions as
372	the division office specifies.
373	(d)  Issuing a reprimand.
374	(e)  Imposing an administrative fine not to exceed $5,000
375	for each separate act or violation.
376	(3)  If a person seeking licensure is anything other than a
377	natural person, the eligibility requirements of this section
378	apply to each direct or ultimate equitable owner of 10 percent
379	or more of the outstanding equity interest of such entity and to
380	each director, general partner, and executive officer.
381	(4)  It is sufficient cause for the division office to take
382	any of the actions specified in subsection (2), as to any entity
383	other than a natural person, if the division office finds
384	grounds for such action as to any member of such entity, as to
385	any executive officer or director of the entity, or as to any
386	person with power to direct the management or policies of the
387	entity.
388	(5)  Each licensee is subject to the provisions of
389	subsection (2) for the acts of employees and agents of the
390	licensee if the licensee knew or should have known about such
391	acts.
392	(6)  Licensure under this chapter act may be denied or any
393	license issued under this chapter act may be suspended or
394	restricted if an applicant or licensee is charged, in a pending
395	enforcement action or pending criminal prosecution, with any
396	conduct that would authorize denial or revocation under this
397	section.
398	Section 8.  Section 537.007, Florida Statutes, is amended
399	to read:
400	537.007  Remedies for title loans made without licensure.-
401	Any title loan made without benefit of a license is void, in
402	which case the person making the title loan forfeits the right
403	to collect any moneys, including principal and interest charged
404	on the title loan, from the borrower in connection with such
405	agreement. The person making the title loan must shall return to
406	the borrower the loan property, the titled personal property
407	pledged or the fair market value of such titled personal
408	property, and all principal and interest paid by the borrower.
409	The borrower is entitled to receive reasonable attorney's fees
410	and costs in any action brought by the borrower to recover from
411	the person making the title loan the loan property, the titled
412	personal property, or the principal and interest paid by the
413	borrower.
414	Section 9.  Section 537.008, Florida Statutes, is amended
415	to read:
416	537.008  Title loan agreement.-
417	(1)  When At the time a title loan lender makes a title
418	loan, the lender and the borrower shall execute a title loan
419	agreement, which must shall be legibly typed or written in
420	indelible ink and completed as to all essential provisions
421	before prior to execution by the borrower and lender. The title
422	loan agreement must shall include the following information:
423	(a)  The make, model, and year of the motor vehicle that
424	serves as collateral for titled personal property to which the
425	loan property relates.
426	(b)  The vehicle identification number, or other comparable
427	identification number, along with the license plate number, if
428	applicable, of the motor vehicle that serves as collateral for
429	titled personal property to which the loan property relates.
430	(c)  The name, residential address, date of birth, physical
431	description, and social security number of the borrower.
432	(d)  The date upon which the title loan agreement is
433	executed by the title loan lender and the borrower.
434	(e)  The identification number and the type of
435	identification, including the issuing agency, accepted from the
436	borrower.
437	(f)  The amount of money advanced, designated as the
438	"amount financed."
439	(f)(g)  The maturity date of the title loan agreement,
440	which must shall be at least 120 30 days, but not more than 1
441	year, after the date upon which the title loan agreement is
442	executed by the title loan lender and the borrower.
443	(h)  The total title loan interest payable on the maturity
444	date, designated as the "finance charge."
445	(i)  The amount financed plus finance charge, which must be
446	paid to reclaim the loan property on the maturity date,
447	designated as the "total amount of all payments."
448	(g)(j)  The "amount financed," "finance charge," "total of
449	payments," and "annual percentage rate" interest rate, computed
450	and disclosed in accordance with the federal Truth in Lending
451	Act and regulations adopted by the Federal Reserve Board under
452	pursuant to the federal Truth in Lending act., designated as the
453	"annual percentage rate."
454	(2)  The following information must shall also be printed
455	on all title loan agreements:
456	(a)  The name and physical address of the title loan
457	office.
458	(b)  The name and address of the division Department of
459	Financial Services as well as a telephone number to which
460	consumers may address complaints.
461	(c)  The following statement in at least not less than 12-
462	point, boldface type, immediately above the borrower's signature
463	that:
464
465	THE INTEREST RATE ON THIS LOAN IS HIGH. YOU SHOULD
466	CONSIDER WHETHER THERE ARE OTHER LOWER COST LOANS
467	AVAILABLE TO YOU.
468
469	THIS IS A MOTOR VEHICLE TITLE LOAN AGREEMENT. IT ALLOWS
470	YOU TO RECEIVE LOAN PROCEEDS TO MEET YOUR IMMEDIATE CASH
471	NEEDS. IT IS NOT INTENDED TO MEET YOUR LONG-TERM FINANCIAL
472	NEEDS.
473
474	WHEN USING THIS LOAN, YOU SHOULD REQUEST THE MINIMUM
475	AMOUNT REQUIRED TO MEET YOUR IMMEDIATE NEEDS AND REPAY THE
476	LOAN AS QUICKLY AS POSSIBLE TO REDUCE THE AMOUNT OF
477	INTEREST YOU ARE CHARGED.
478
479	YOU WILL BE REQUIRED TO PAY THE PRINCIPAL AND INTEREST ON
480	THE LOAN IN SUBSTANTIALLY EQUAL MONTHLY INSTALLMENTS. YOU
481	SHOULD TRY TO PAY EVEN MORE TOWARD YOUR PRINCIPAL BALANCE
482	EACH MONTH. DOING SO WILL SAVE YOU MONEY.
483
484	YOU MAY RESCIND THIS LOAN WITHOUT COST OR FURTHER
485	OBLIGATION IF YOU RETURN THE LOAN PROCEEDS IN CASH OR
486	RETURN THE ORIGINAL LOAN CHECK BEFORE THE CLOSE OF
487	BUSINESS ON THE BUSINESS DAY IMMEDIATELY FOLLOWING THE
488	DATE UPON WHICH THIS AGREEMENT IS EXECUTED.
489
490	YOU ARE PLEDGING YOUR MOTOR VEHICLE AS COLLATERAL FOR THIS
491	LOAN. IF YOU FAIL TO REPAY THE LOAN ACCORDING TO THIS
492	AGREEMENT, WE MAY REPOSSESS YOUR MOTOR VEHICLE.
493
494	UNLESS YOU CONCEAL OR INTENTIONALLY DAMAGE THE MOTOR
495	VEHICLE OR OTHERWISE IMPAIR OUR SECURITY INTEREST BY
496	PLEDGING THE MOTOR VEHICLE TO A THIRD PARTY OR PLEDGING A
497	MOTOR VEHICLE TO US THAT IS ALREADY SUBJECT TO AN
498	UNDISCLOSED EXISTING LIEN, YOUR LIABILITY FOR DEFAULTING
499	UNDER THIS LOAN IS LIMITED TO THE LOSS OF THE MOTOR
500	VEHICLE.
501
502	IF YOUR MOTOR VEHICLE IS SOLD DUE TO YOUR DEFAULT, YOU ARE
503	ENTITLED TO ANY SURPLUS OBTAINED AT SUCH SALE BEYOND WHAT
504	IS OWED UNDER THIS AGREEMENT AND ANY REASONABLE COSTS OF
505	RECOVERY, STORAGE, AND SALE.
506
507	1.  If the borrower fails to repay the full amount of the
508	title loan on or before the end of the maturity date or any
509	extension of the maturity date and fails to make a payment on
510	the title loan within 30 days after the end of the maturity date
511	or any extension of the maturity date, whichever is later, the
512	title loan lender may take possession of the borrower's motor
513	vehicle and sell the vehicle in the manner provided by law. If
514	the vehicle is sold, the borrower is entitled to any proceeds of
515	the sale in excess of the amount owed on the title loan and the
516	reasonable expenses of repossession and sale.
517	2.  If the title loan agreement is lost, destroyed, or
518	stolen, the borrower should immediately so advise the issuing
519	title loan lender in writing.
520	(d)  The statement that "The borrower represents and
521	warrants that the motor vehicle that serves as collateral for
522	titled personal property to which the title loan property
523	relates is not stolen and does not have any has no liens or
524	encumbrances against it, the borrower has the right to enter
525	into this transaction, and the borrower is prohibited from
526	applying will not apply for a duplicate certificate of title
527	while the title loan agreement is in effect."
528	(e)  A blank line for the signature of the borrower and the
529	title loan lender or the lender's agent.
530
531	Each owner All owners of the motor vehicle that serves as
532	collateral for the title loan titled personal property must sign
533	the title loan agreement.
534	(3)  At the time of the transaction, the title loan lender
535	shall deliver to the borrower an exact copy of the executed
536	title loan agreement.
537	(4)  Upon execution of a title loan agreement, the title
538	loan lender must may take possession of the certificate of title
539	of the motor vehicle that serves as collateral for the loan, and
540	within 7 business days thereafter, record the lender's lien on
541	such title as provided by law. The title loan lender
542	subsequently retains property and retain possession of such
543	certificate of title property until the title loan such property
544	is repaid in full redeemed. The borrower shall have the
545	exclusive right to redeem the loan property by repaying all
546	amounts legally due under the agreement. When a title the loan
547	property is repaid in full redeemed, the lender shall
548	immediately release the lien on return the certificate of title
549	loan property and return the certificate of title to the
550	borrower commence action to release any security interest in the
551	titled personal property. During the term of the agreement or
552	any extension of the agreement, a title loan lender may retain
553	physical possession of the loan property only. A title loan
554	lender may shall not require a borrower to provide any
555	additional collateral security or guaranty as a condition to
556	entering into a title loan transaction. A title loan lender may
557	not enter into a title loan agreement if the certificate of
558	title of the motor vehicle that serves as collateral for the
559	loan evidences that the motor vehicle is security for another
560	loan or is otherwise encumbered by a lien.
561	Section 10.  Section 537.009, Florida Statutes, is amended
562	to read:
563	537.009  Recordkeeping; reporting; safekeeping of
564	property.-
565	(1)  A Every title loan lender shall maintain, at the
566	lender's title loan office, such books, accounts, and records of
567	the business conducted under the license issued for such place
568	of business as will enable the division office to determine the
569	licensee's compliance with this chapter act.
570	(2)  The division office may authorize the maintenance of
571	books, accounts, and records at a location other than the
572	lender's title loan office. The division office may require
573	books, accounts, and records to be produced and available at a
574	reasonable and convenient location in this state within a
575	reasonable period of time after such a request.
576	(3)  A The title loan lender shall maintain the original
577	copy of each completed title loan agreement on the premises of
578	the title loan office premises, and may shall not obliterate,
579	discard, or destroy any such original copy, for a period of at
580	least 2 years after making the final entry on any loan recorded
581	in such office or after an examination by the division Office of
582	Financial Regulation, whichever is later.
583	(4)  A certificate of title that Loan property which is
584	held by delivered to a title loan lender must shall be securely
585	stored and maintained at the title loan office unless the
586	certificate of title is loan property has been forwarded to the
587	appropriate state agency for the purpose of having a lien
588	recorded or deleted.
589	(5)  The department commission may adopt rules prescribing
590	prescribe by rule the books, accounts, documents, and records,
591	and the minimum information to be shown in the books, accounts,
592	documents, and records, of licensees so that such records will
593	enable the division office to determine compliance with the
594	provisions of this chapter act. Such rules In addition, the
595	commission may include prescribe by rule requirements for the
596	destruction of books, accounts, records, and documents retained
597	by the licensee after completion of the time period specified in
598	subsection (3).
599	Section 11.  Section 537.011, Florida Statutes, is amended
600	to read:
601	(Substantial rewording of section. See
602	s. 537.011, F.S., for present text.)
603	537.011  Title loan charges.-
604	(1)  A licensee may charge and collect interest on a title
605	loan at rates not to exceed the following:
606	(a)  Twenty-two percent per month on that portion of the
607	principal which does not exceed $700.
608	(b)  Eighteen percent per month on that portion of the
609	principal which exceeds $700 but does not exceed $1,400.
610	(c)  Fifteen percent per month on that portion of the
611	principal which exceeds $1,400.
612	(2)  Interest may be charged only upon principal balances
613	outstanding from time to time. Interest may not be charged on an
614	add-on basis and may not be compounded, paid, deducted, or
615	received in advance. For title loans that exceed $700, a
616	licensee may accrue interest using a single blended interest
617	rate, but the interest charged may not exceed the maximum charge
618	allowed under subsection (1).
619	(3)  Notwithstanding subsection (1) or any provision of a
620	title loan agreement, interest may not accrue on the principal
621	balance of a title loan after:
622	(a)  The date upon which the motor vehicle that serves as
623	collateral for the title loan is repossessed by the licensee
624	making the loan. However, if the licensee allows the borrower to
625	redeem the motor vehicle while any portion of the principal
626	balance remains unpaid, interest accrual may resume upon the
627	borrower's regaining possession of the motor vehicle; or
628	(b)  The 60th day after the borrower fails to make a
629	monthly payment on the title loan as required by the loan
630	agreement, unless the borrower fails to surrender the motor
631	vehicle and conceals, thereby preventing repossession of, the
632	motor vehicle. However, after the 60th day following the
633	borrower's failure to make a monthly payment but before the
634	licensee repossesses the motor vehicle, upon the borrower's
635	making all delinquent payments, interest accrual may resume and
636	interest may be added to the borrower's principal balance for
637	the period from the day that interest accrual ceased under this
638	paragraph through the date on which the borrower made all
639	delinquent payments.
640	(4)  A title loan shall be a term loan providing for
641	repayment of the principal and interest in substantially equal
642	monthly installments of principal and interest. However, this
643	section does not prohibit a loan agreement from providing for an
644	odd first-payment period and an odd first payment greater than
645	other monthly payments because of such odd first-payment period.
646	(5)  A title loan agreement may not be extended, renewed,
647	or refinanced.
648	(6)  A licensee may impose a late charge for the borrower's
649	failure to make timely payment of any amount due under the loan
650	agreement, but such late charge may not exceed the amount
651	allowed under s. 516.031(3).
652	(7)  A licensee must credit payments on the date received.
653	(8)  In addition to the loan principal, interest, and fees
654	allowed under this section, a licensee may not directly or
655	indirectly charge, contract for, collect, receive, recover, or
656	require a borrower to pay any further or other fee, charge, or
657	amount whatsoever, except for:
658	(a)  A licensee's actual cost of perfecting its security
659	interest in the motor vehicle that serves as collateral for the
660	borrower's obligations under the title loan agreement.
661	(b)  The licensee's reasonable and actual costs of
662	repossession, storage, and sale of the motor vehicle, if the
663	borrower defaults under the terms of the title loan agreement.
664	(9)  If any excess interest or fee is charged and such
665	charge resulted from a bona fide error by the title loan lender
666	or an agent of the title loan lender, the lender shall refund
667	the excess interest or fee to the borrower within 30 days after
668	discovery by the lender of the error or within 30 days after
669	notice of the error from the borrower, whichever occurs first.
670	(10)  If any excess interest or fee is charged by the title
671	loan lender or an agent of the title loan lender in an effort to
672	intentionally circumvent the maximum title loan interest and
673	fees allowed by this chapter:
674	(a)  The title loan agreement is void.
675	(b)  The title loan lender must refund to the borrower any
676	interest paid on the title loan and return to the borrower the
677	certificate of title with the lender's lien released.
678	(c)  The title loan lender forfeits the lender's right to
679	collect any principal owed by the borrower on the title loan.
680
681	The division may order a title loan lender or an agent of the
682	title loan lender to comply with this subsection.
683	Section 12.  Section 537.012, Florida Statutes, is amended
684	to read:
685	(Substantial rewording of section. See
686	s. 537.012, F.S., for present text.)
687	537.012  Limited liability for default of title loan;
688	repossession and disposal of pledged property; excess proceeds.-
689	(1)  Except as otherwise provided in subsection (5), a
690	licensee taking a security interest in a motor vehicle under
691	this chapter is limited, upon default by the borrower, to
692	seeking repossession of, preparing for sale of, and selling the
693	motor vehicle in accordance with Article 9 of the Uniform
694	Commercial Code as provided in chapter 679. The licensee may not
695	collect or charge the costs of repossessing and selling the
696	motor vehicle described in s. 537.011(8)(b) unless:
697	(a)  The licensee, at least 10 days before repossessing the
698	motor vehicle, sends to the borrower, by first-class mail,
699	written notice advising the borrower that the title loan is in
700	default and stating that the motor vehicle may be repossessed
701	unless the principal and interest owed under the loan agreement
702	are paid; and
703	(b)  The borrower does not pay such principal and interest
704	before the date that the motor vehicle is repossessed by, or at
705	the direction of, the licensee.
706
707	A licensee may not repossess a motor vehicle securing a title
708	loan before the date specified in the notice required under this
709	subsection. Except as otherwise provided in subsection (5), a
710	licensee may not seek or obtain a personal money judgment
711	against a borrower for any amount owed under a loan agreement or
712	any deficiency resulting after the sale of a motor vehicle. If
713	the borrower voluntarily surrenders the motor vehicle, the
714	notice requirements of this subsection do not apply.
715	(2)  At least 15 days before the sale of a motor vehicle, a
716	licensee must notify the borrower of the date and time after
717	which the motor vehicle is subject to sale and provide the
718	borrower with a written accounting of the principal amount due
719	to the licensee, interest accrued through the date that the
720	licensee took possession of the motor vehicle, and any
721	reasonable expenses incurred to date by the licensee in taking
722	possession of, preparing for sale of, storing, and selling the
723	motor vehicle. At any time before such sale, the licensee must
724	allow the borrower to redeem the motor vehicle by tendering cash
725	or any other valid funds instrument for the amount owed.
726	(3)  Within 60 days after the licensee's receipt of funds
727	from the sale of a motor vehicle, the borrower is entitled to
728	receive all proceeds from such sale of the motor vehicle in
729	excess of the principal amount due to the licensee, interest
730	accrued through the date the licensee took possession, and the
731	reasonable expenses incurred by the licensee in taking
732	possession of, storing, preparing for sale of, and selling the
733	motor vehicle.
734	(4)  Except in the case of fraud or a voluntary surrender
735	of the motor vehicle, a licensee may not take possession of a
736	motor vehicle until the borrower is in default under the loan
737	agreement. Except as otherwise provided in this chapter, the
738	repossession and sale of a motor vehicle is subject to Article 9
739	of the Uniform Commercial Code as provided in chapter 679.
740	(5)  Notwithstanding any provision of law, upon default by
741	a borrower, a licensee may seek a personal money judgment
742	against the borrower for any amounts owed under the loan
743	agreement if the borrower impairs the licensee's security
744	interest by:
745	(a)  Intentionally damaging or destroying the motor
746	vehicle;
747	(b)  Intentionally concealing the motor vehicle;
748	(c)  Giving the licensee a lien in a motor vehicle that is
749	already encumbered by an undisclosed prior lien; or
750	(d)  Subsequently giving a security interest in, or
751	selling, the motor vehicle that serves as collateral for the
752	title loan to a third party without the licensee's written
753	consent.
754	Section 13.  Section 537.013, Florida Statutes, is amended
755	to read:
756	537.013  Prohibited acts.-
757	(1)  A title loan lender, or any agent or employee of a
758	title loan lender, may shall not:
759	(1)(a)  Falsify or fail to make an entry of any material
760	matter in a title loan agreement or any extension of such
761	agreement.
762	(2)(b)  Refuse to allow the division office to inspect
763	completed title loan agreements and supporting documents,
764	extensions of such agreements, or loan property during the
765	ordinary operating hours of the title loan lender's business or
766	other times acceptable to both parties.
767	(3)(c)  Enter into a title loan agreement with a person
768	younger than under the age of 18 years of age.
769	(4)(d)  Make any agreement requiring or allowing for the
770	personal liability of a borrower beyond the limits authorized in
771	s. 537.012 or the waiver of any provision of the provisions of
772	this chapter act.
773	(5)(e)  Knowingly enter into a title loan agreement with
774	any person who is under the influence of drugs or alcohol when
775	such condition is visible or apparent, or with any person using
776	a name other than such person's own name or the registered name
777	of the person's business.
778	(6)(f)  Fail to exercise reasonable care, as defined by
779	department commission rule, in the safekeeping of certificates
780	of title loan property or of motor vehicles titled personal
781	property repossessed under pursuant to this chapter act.
782	(7)(g)  Fail to return the borrower's certificate of title
783	and, if repossessed, the borrower's motor vehicle loan property
784	or repossessed titled personal property to a borrower, with any
785	and all of the title loan lender's liens on the motor vehicle
786	property properly released, upon payment of the full amount due
787	the title loan lender, unless the motor vehicle property has
788	been seized or impounded by an authorized law enforcement
789	agency, taken into custody by a court, or otherwise disposed of
790	by court order. If, while a title loan lender is awaiting return
791	of a certificate of title pending the recording of the lender's
792	lien, the borrower repays the title loan in full, the lender
793	shall release its lien and return the certificate of title to
794	the borrower within 3 days after regaining possession thereof.
795	(8)(h)  Sell or otherwise charge for any type of insurance
796	in connection with a title loan agreement.
797	(9)(i)  Intentionally charge or receive any finance charge,
798	interest, or fees that which are not authorized under pursuant
799	to this chapter or fail to timely refund such unauthorized
800	finance charge, interest, or fees received due to a bona fide
801	error act.
802	(10)(j)  Act as a title loan lender without an active
803	license issued under this chapter act.
804	(11)(k)  Refuse to accept partial payments toward
805	satisfying any obligation owed under a title loan agreement or
806	extension of such agreement.
807	(12)(l)  Charge a prepayment penalty.
808	(13)(m)  Engage in the business of selling new or used
809	motor vehicles, or parts for motor vehicles.
810	(14)(n)  Act as a title loan lender under this chapter act
811	within a place of business in which the licensee solicits or
812	engages in business outside the scope of this chapter act if the
813	division office determines that the licensee's operation of and
814	conduct pertaining to such other business results in an evasion
815	of this chapter act. Upon making such a determination, the
816	division office shall order the licensee to cease and desist
817	from such evasion; provided, no licensee shall engage in the
818	pawnbroker business.
819	(15)  Engage in the pawnbroker business or deferred
820	presentment business or allow another person to engage in such
821	business at the licensee's title loan office.
822	(16)  Cause a borrower to be obligated for a title loan for
823	a principal amount that exceeds 50 percent of the fair market
824	value of the motor vehicle in which the licensee is securing an
825	interest, which value shall be determined by reference to the
826	market value of similarly situated motor vehicles specified in a
827	recognized pricing guide, if included in such pricing guide.
828	(2)  Title loan companies may not advertise using the words
829	"interest free loans" or "no finance charges."
830	Section 14.  Section 537.014, Florida Statutes, is amended
831	to read:
832	(Substantial rewording of section. See
833	s. 537.014, F.S., for present text.)
834	537.014  Right of rescission.-A licensee shall allow a
835	borrower under a title loan agreement to rescind the title loan
836	without cost or further obligation if the borrower returns the
837	full amount of the loan proceeds in cash or returns the original
838	loan check before the close of business on the business day
839	immediately following the date on which the title loan agreement
840	is executed.
841	Section 15.  Section 537.015, Florida Statutes, is amended
842	to read:
843	537.015  Criminal penalties.-
844	(1)  Any person who acts as a title loan lender without
845	first securing the license prescribed by this chapter act
846	commits a felony of the third degree, punishable as provided in
847	s. 775.082, s. 775.083, or s. 775.084.
848	(2)  In addition to any other applicable penalty, any
849	person who willfully violates any provision of this chapter act
850	or who willfully makes a false entry in any record specifically
851	required by this chapter act commits a misdemeanor of the first
852	degree, punishable as provided in s. 775.082 or s. 775.083.
853	Section 16.  Section 537.016, Florida Statutes, is amended
854	to read:
855	537.016  Subpoenas; enforcement actions; rules.-
856	(1)  The division office may issue and serve subpoenas to
857	compel the attendance of witnesses and the production of
858	documents, papers, books, records, and other evidence before the
859	division office in any matter pertaining to this chapter act.
860	The division office may administer oaths and affirmations to any
861	person whose testimony is required. If any person refuses to
862	testify or; produce books, records, and documents; or otherwise
863	refuses to obey a subpoena issued under this section, the
864	division office may enforce the subpoena in the same manner as
865	subpoenas issued under the Administrative Procedure Act are
866	enforced. Witnesses are entitled to the same fees and mileage as
867	they are entitled to by law for attending as witnesses in the
868	circuit court, unless such examination or investigation is held
869	at the place of business or residence of the witness.
870	(2)  In addition to any other powers conferred upon the
871	division office to enforce or administer this chapter act, the
872	division office may:
873	(a)  Bring an action in any court of competent jurisdiction
874	to enforce or administer this chapter act, any rule or order
875	adopted under this chapter act, or any written agreement entered
876	into with the division office. In such action, the division
877	office may seek any relief at law or equity, including a
878	temporary or permanent injunction, appointment of a receiver or
879	administrator, or an order of restitution.
880	(b)  Issue and serve upon a person an order requiring such
881	person to cease and desist and take corrective action whenever
882	the division office finds that such person is violating, has
883	violated, or is about to violate any provision of this chapter
884	act, any rule or order adopted under this chapter act, or any
885	written agreement entered into with the division office.
886	(c)  Whenever the division office finds that conduct
887	described in paragraph (b) presents an immediate danger to the
888	public health, safety, or welfare requiring an immediate final
889	order, the division office may issue an emergency cease and
890	desist order reciting with particularity the facts underlying
891	such findings. The emergency cease and desist order is effective
892	immediately upon service of a copy of the order on the
893	respondent named in the order and shall remain effective for 90
894	days. If the division office begins nonemergency proceedings
895	under paragraph (b), the emergency cease and desist order
896	remains effective until the conclusion of the proceedings under
897	ss. 120.569 and 120.57.
898	(3)  The department commission may adopt rules to
899	administer this chapter act.
900	Section 17.  Section 537.017, Florida Statutes, is amended
901	to read:
902	537.017  Investigations and complaints.-
903	(1)  The division office may investigate make any
904	investigation and examine examination of any licensee or other
905	person whom the division office deems necessary to determine
906	compliance with this chapter act. For such purposes, the
907	division office may examine the books, accounts, records, and
908	other documents or matters of any licensee or other person. The
909	division office may compel the production of all relevant books,
910	records, and other documents and materials relative to an
911	examination or investigation. Examinations shall not be made
912	more often than once during any 12-month period unless the
913	division office has reason to believe the licensee is not
914	complying with the provisions of this chapter act.
915	(2)  The division office shall conduct all examinations at
916	a convenient location in this state unless the division office
917	determines that it is more effective or cost-efficient to
918	perform an examination at the licensee's out-of-state location.
919	For an examination performed at the licensee's out-of-state
920	location, the licensee shall pay the travel expense and per diem
921	subsistence at the rate provided by law for up to thirty 8-hour
922	days per year for each of the division's examiners office
923	examiner who participates in such an examination. However, if
924	the examination involves or reveals possible fraudulent conduct
925	by the licensee, the licensee shall pay the travel expenses and
926	per diem subsistence provided by law, without limitation, for
927	each participating examiner.
928	(3)  Any person having reason to believe that a violation
929	of any provision of this chapter act has occurred been violated
930	may file with the department of Financial Services or the office
931	a written complaint setting forth the details of such alleged
932	violation, and the division office may investigate the such
933	complaint.
934	Section 18.  Section 537.018, Florida Statutes, is
935	repealed.
936	Section 19.  This act shall take effect July 1, 2011.

CODING: Words stricken are deletions; words underlined are additions.