HB 877

A bill to be entitled
2An act relating to title loans; amending s. 494.00797,
3F.S.; exempting certain persons from specified financial
4and lending regulations adopted by counties and
5municipalities; amending s. 537.001, F.S.; conforming a
6short title; amending s. 537.002, F.S.; revising
7legislative intent; providing that regulation of title
8loans is preempted to the state; amending s. 537.003,
9F.S.; revising and providing definitions; transferring
10regulation of title loans from the Office of Financial
11Regulation to the Department of Agriculture and Consumer
12Services; amending s. 537.004, F.S.; prohibiting certain
13activities at or within a certain proximity of title loan
14offices; providing for deposit of certain moneys in the
15General Inspection Trust Fund; amending s. 537.005, F.S.;
16conforming provisions; amending s. 537.006, F.S.; revising
17the grounds for disciplinary action against title loan
18lenders; amending s. 537.007, F.S.; conforming provisions;
19amending s. 537.008, F.S.; revising requirements for title
20loan agreements, for transferring possession of the motor
21vehicle's certificate of title, and for the recording and
22releasing of liens against the motor vehicle; amending s.
23537.009, F.S.; conforming provisions; amending s. 537.011,
24F.S.; revising requirements for the accrual of interest on
25title loans; prohibiting the extension, renewal, and
26refinancing of title loans; authorizing certain fees and
27charges associated with title loans; amending s. 537.012,
28F.S.; revising requirements for the repossession and sale
29of motor vehicles to satisfy unpaid title loans and for
30the disbursement of excess proceeds from such sales to the
31borrowers; limiting the liability of borrowers for unpaid
32title loans; authorizing a title loan lender to seek money
33damages against a borrower under certain circumstances;
34amending s. 537.013, F.S.; revising and providing
35additional prohibited acts by title loan lenders or any
36agents or employees thereof, to which penalties apply;
37amending s. 537.014, F.S.; revising requirements for
38rescission of a title loan agreement; deleting procedures
39for lost, destroyed, or stolen tile loan agreements;
40deleting a provision prohibiting a title loan lender from
41imposing a fee for providing the borrower with a copy of
42the title loan agreement; amending ss. 537.015, 537.016,
43and 537.017, F.S.; conforming provisions; repealing s.
44537.018, F.S., relating to the authority of counties and
45municipalities to adopt more restrictive ordinances
46regulating title loans; providing an effective date.
48Be It Enacted by the Legislature of the State of Florida:
50     Section 1.  Subsection (1) of section 494.00797, Florida
51Statutes, is amended to read:
52     494.00797  General rule.-All counties and municipalities of
53this state are prohibited from enacting and enforcing
54ordinances, resolutions, and rules regulating financial or
55lending activities, including ordinances, resolutions, and rules
56disqualifying persons from doing business with a city, county,
57or municipality based upon lending interest rates or imposing
58reporting requirements or any other obligations upon persons
59regarding financial services or lending practices of persons or
60entities, and any subsidiaries or affiliates thereof, who:
61     (1)  Are subject to the jurisdiction of the office or the
62Department of Agriculture and Consumer Services, including for
63activities subject to this chapter, except entities licensed
64under s. 537.004;
66Proof of noncompliance with this act can be used by a city,
67county, or municipality of this state to disqualify a vendor or
68contractor from doing business with a city, county, or
69municipality of this state.
70     Section 2.  Section 537.001, Florida Statutes, is amended
71to 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
75to read:
76     537.002  Legislative intent; application; preemption.-
77     (1)  It is the intent of the Legislature in the creation of
78this chapter that title loans to consumers be regulated by the
79provisions of this chapter act. The provisions of This chapter
80supersedes act supersede any provision other provisions of state
81law affecting title loans to the extent of any conflict.
82     (2)  The regulation of all aspects of the business of
83offering title loans as provided in this chapter is preempted to
84the state. Any such regulation adopted by a county or
85municipality, regardless of when adopted, is void.
86     Section 4.  Section 537.003, Florida Statutes, is amended
87to read:
88     537.003  Definitions.-As used in this chapter act, the term
89unless the context otherwise requires:
90     (1)  "Commercially reasonable" has the same meaning as used
91in part VI part V of chapter 679. In addition, nonpublic sales
92or disposal of personal property between a title loan lender and
93any business affiliates of a title loan lender or a member of a
94title loan lender's family are presumed not to be made in a
95commercially reasonable manner.
96     (2)  "Commission" means the Financial Services Commission.
97     (2)(3)  "Consumer" means an individual borrowing money for
98personal, family, or household purposes.
99     (3)  "Department" means the Department of Agriculture and
100Consumer Services.
101     (4)  "Division" means the Division of Consumer Services of
102the department.
103     (4)  "Office" means the Office of Financial Regulation of
104the commission.
105     (5)  "Executive officer" means the president, chief
106executive officer, chief financial officer, chief operating
107officer, executive vice president, senior vice president,
108secretary, and treasurer.
109     (6)  "Identification" means a government-issued
110photographic identification.
111     (7)  "Interest" means the cost of obtaining a title loan
112and includes any profit or advantage of any kind whatsoever that
113a title loan lender may charge, contract for, collect, receive,
114or in any way obtain as a result of a title loan.
115     (8)  "License" means a permit issued under this chapter act
116to make or service title loans in accordance with this chapter
117act at a single title loan office.
118     (9)  "Licensee" means a person who is licensed as a title
119loan lender.
120     (10)  "Loan property" means any motor vehicle certificate
121of title that is deposited with a title loan lender as a
122security for a title loan in the course of the title loan
123lender's business.
124     (10)(11)  "Motor vehicle" means an automobile, motorcycle,
125mobile home, truck, trailer, semitrailer, truck tractor and
126semitrailer combination, or any other vehicle operated on the
127public highways and streets of this state, used to transport
128persons or property, and propelled by power other than muscular
129power, but excluding a vehicle which runs only upon a track and
130a mobile home that is the primary residence of the owner.
131     (11)(12)  "Title loan" or "loan" means a loan of money to a
132consumer secured by a nonpurchase money security interest in
133bailment of a certificate of title to a motor vehicle, except
134such loan made by a person licensed under chapter 516, chapter
135520, chapter 655, chapter 657, chapter 658, chapter 660, chapter
136663, chapter 665, or chapter 667 or a person who complies with
137s. 687.03.
138     (12)(13)  "Title loan agreement" or "agreement" means a
139written agreement in which a title loan lender agrees to make a
140title loan to a borrower.
141     (13)(14)  "Title loan lender" or "lender" means any person
142who engages in the business of making or servicing title loans.
143     (14)(15)  "Title loan office" means the location at which,
144or premises from which, a title loan lender regularly conducts
145business under this chapter or any other location that is held
146out to the public as a location at which a lender makes or
147services title loans.
148     (16)  "Titled personal property" means a motor vehicle that
149has as evidence of ownership a state-issued certificate of title
150except for a mobile home that is the primary residence of the
152     (15)(17)  "Ultimate equitable owner" means a person who,
153directly or indirectly, owns or controls an ownership interest
154in a corporation, a foreign corporation, an alien business
155organization, or any other form of business organization,
156regardless of whether such person owns or controls such
157ownership interest through one or more persons or one or more
158proxies, powers of attorney, nominees, corporations,
159associations, partnerships, trusts, joint stock companies, or
160other entities or devices, or any combination thereof.
161     Section 5.  Section 537.004, Florida Statutes, is amended
162to read:
163     537.004  License required; license fees.-
164     (1)  A person may not act as a title loan lender or own or
165operate a title loan office unless such person has an active
166title loan lender license issued by the division office under
167this chapter act. A title loan lender may not own or operate
168more than one title loan office unless the lender obtains a
169separate title loan lender license for each title loan office. A
170title loan lender may not own or operate a title loan office
172     (a)  Offers or makes deferred presentment transactions as
173defined in s. 560.402; or
174     (b)  Is located within 1,000 feet of any location owned or
175operated by a person who shares a common ultimate equitable
176ownership interest with the title loan lender, if title loans or
177deferred presentment transactions are offered or made at such
179     (2)  A person applying for licensure as a title loan lender
180shall file with the division office an application, the bond
181required by s. 537.005(3), a nonrefundable application fee of
182$1,200, a nonrefundable investigation fee of $200, and a
183complete set of fingerprints taken by an authorized law
184enforcement officer. The division office shall submit such
185fingerprints to the Department of Law Enforcement for state
186processing, and the Department of Law Enforcement shall forward
187the fingerprints to the Federal Bureau of Investigation for
188national processing.
189     (3)  If the division office determines that an application
190should be approved, the division office shall issue a license
191for a period not to exceed 2 years.
192     (4)  A license must shall be renewed biennially by filing a
193renewal form and a nonrefundable renewal fee of $1,200. A
194license that is not renewed by the end of the biennial period
195shall automatically reverts revert to inactive status. An
196inactive license may be reactivated within 6 months after
197becoming inactive by filing a reactivation form, payment of the
198nonrefundable $1,200 renewal fee, and payment of a nonrefundable
199reactivation fee of $600. A license that is not reactivated
200within 6 months after becoming inactive may not be reactivated
201and shall automatically expires expire. The department
202commission shall adopt rules establishing establish by rule the
203procedures for the renewal and reactivation of a license and
204prescribing shall adopt a renewal form and a reactivation form.
205     (5)  Each license must be conspicuously displayed at the
206title loan office. When A licensee must give the division
207written notice before moving wishes to move a title loan office
208to another location, the licensee shall provide prior written
209notice to the office.
210     (6)  A license issued under pursuant to this chapter act is
211not transferable or assignable.
212     (7)  Each licensee must shall designate and maintain a
213registered agent in this state for service of process.
214     (8)  Whenever A person or a group of persons who, directly
215or indirectly, or acting by or through one or more persons,
216purchases proposes to purchase or acquires acquire a 50-percent
21750 percent or more interest in a licensee, must such person or
218group shall submit an initial application for licensure under
219this chapter before act prior to such purchase or acquisition.
220     (9)  The department commission may adopt rules authorizing
221the to allow for electronic filing of applications, fees, and
222forms required by this chapter act.
223     (10)  All moneys collected by the division office under
224this chapter act shall be deposited into the General Inspection
225Regulatory Trust Fund of the department office.
226     Section 6.  Section 537.005, Florida Statutes, is amended
227to read:
228     537.005  Application for license.-
229     (1)  A verified application for licensure under this
230chapter act, in the form prescribed by department commission
231rule, must shall:
232     (a)  Contain the name and the residence and business
233address of the applicant. If the applicant is other than a
234natural person, the application must shall contain the name and
235the residence and business address of each ultimate equitable
236owner of 10 percent or more of such entity and each director,
237general 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,
240or has been convicted or found guilty of, a felony, regardless
241of whether adjudication was withheld.
242     (c)  Identify the county and municipality with the street
243and number or location where the business is to be conducted.
244     (d)  Contain additional information as the department
245commission determines by rule to be necessary to ensure
246compliance with this chapter act.
247     (2)  Notwithstanding subsection (1), the application need
248not state the full name and address of each officer, director,
249and shareholder if the applicant is owned directly or
250beneficially by a person who as an issuer has a class of
251securities registered pursuant to s. 12 of the Securities
252Exchange Act of 1934 or, pursuant to s. 13 or s. 15(d) of such
253act, is an issuer of securities which is required to file
254reports with the Securities and Exchange Commission, if the
255person files with the division office any information,
256documents, and reports required by such act to be filed with the
257Securities and Exchange Commission.
258     (3)  An applicant for licensure shall file with the
259division office a bond, in the amount of $100,000 for each
260license, with a surety company qualified to do business in this
261state. However, in no event shall the aggregate amount of the
262bond required for a single title loan lender may not exceed $1
263million. In lieu of the bond, the applicant may establish a
264certificate of deposit or an irrevocable letter of credit in a
265financial institution, as defined in s. 655.005, in the amount
266of the bond. The original bond, certificate of deposit, or
267letter of credit must shall be filed with the division office,
268and the department must office shall be the beneficiary to that
269document. The bond, certificate of deposit, or letter of credit
270must shall be in favor of the department office for the use and
271benefit of any consumer who is injured pursuant to a title loan
272transaction by the fraud, misrepresentation, breach of contract,
273financial failure, or violation of any provision of this chapter
274act by the title loan lender. Such liability may be enforced
275either by proceeding in an administrative action or by filing a
276judicial suit at law in a court of competent jurisdiction.
277However, in such court suit, the bond, certificate of deposit,
278or letter of credit posted with the division is office shall not
279be amenable or subject to any judgment or other legal process
280issuing out of or from such court in connection with such
281lawsuit, but such bond, certificate of deposit, or letter of
282credit is shall be amenable to and enforceable only by and
283through administrative proceedings before the division office.
284It is the intent of the Legislature that such bond, certificate
285of deposit, or letter of credit shall be applicable and liable
286only for the payment of claims duly adjudicated by order of the
287division office. The bond, certificate of deposit, or letter of
288credit shall be payable on a pro rata basis as determined by the
289division office, but the aggregate amount may not exceed the
290amount of the bond, certificate of deposit, or letter of credit.
291     (4)  The division office shall approve an application and
292issue a license if the division office determines that the
293applicant satisfies the requirements of this chapter act.
294     Section 7.  Section 537.006, Florida Statutes, is amended
295to read:
296     537.006  Denial, suspension, or revocation of license.-
297     (1)  The following acts are violations of this chapter act
298and constitute grounds for the disciplinary actions specified in
299subsection (2):
300     (a)  Failure to comply with any provision of this chapter
301act, any rule or order adopted under pursuant to this chapter
302act, or any written agreement entered into with the division
304     (b)  Fraud, misrepresentation, deceit, or gross negligence
305in any title loan transaction, regardless of reliance by or
306damage to the borrower.
307     (c)  Fraudulent misrepresentation, circumvention, or
308concealment of any matter required to be stated or furnished to
309a borrower under pursuant to this chapter act, regardless of
310reliance by or damage to the borrower.
311     (d)  Imposition of illegal or unauthorized excessive
312charges in any title loan transaction.
313     (e)  False, deceptive, or misleading advertising by a title
314loan lender.
315     (f)  Failure to maintain, preserve, and keep available for
316examination all books, accounts, or other documents required by
317this chapter act, by any rule or order adopted under pursuant to
318this chapter act, or by any agreement entered into with the
319division office.
320     (g)  Aiding, abetting, or conspiring by a title loan lender
321with a person to circumvent or violate any of the requirements
322of this chapter act.
323     (h)  Refusal to provide information upon request of the
324division office, to permit inspection of books and records in an
325investigation or examination by the division office, or to
326comply with a subpoena issued by the division office.
327     (i)  Pleading nolo contendere to or having been convicted
328or found guilty, regardless of whether adjudication was
329withheld, of a crime involving fraud, dishonest dealing, or any
330act of moral turpitude or acting as an ultimate equitable owner
331of 10 percent or more of a licensee who has pleaded pled nolo
332contendere to or has been convicted or found guilty, regardless
333of whether adjudication was withheld, of a crime involving
334fraud, dishonest dealing, or any act of moral turpitude.
335     (j)  Making or having made material misstatement of fact in
336an initial or renewal application for a license.
337     (k)  Having been the subject of any decision, finding,
338injunction, suspension, prohibition, revocation, denial,
339judgment, or administrative order by any court of competent
340jurisdiction or administrative law judge, or by any state or
341federal agency, involving a violation of any federal or state
342law relating to title loans or any rule or regulation adopted
343under such law, or has been the subject of any injunction or
344adverse administrative order by a state or federal agency
345regulating banking, insurance, finance or small loan companies,
346real estate, mortgage brokers, or other related or similar
347industries for acts involving fraud, dishonest dealing, or any
348act of moral turpitude.
349     (l)  Failing to continuously maintain the bond, certificate
350of deposit, or letter of credit required under by s. 537.005(3).
351     (m)  Failing to timely pay any fee, charge, or fine imposed
352or assessed under pursuant to this chapter act or rules adopted
353under this chapter act.
354     (n)  Having a license or registration, or the equivalent,
355to practice any profession or occupation denied, suspended,
356revoked, or otherwise acted against by a licensing authority in
357any jurisdiction for fraud, dishonest dealing, or any act of
358moral turpitude.
359     (o)  Having demonstrated unworthiness, as defined by
360department commission rule, to transact the business of a title
361loan lender.
362     (2)  Upon a finding by the division office that any person
363has committed any of the acts set forth in subsection (1), the
364division office may enter an order taking one or more of the
365following actions:
366     (a)  Denying an application for licensure under this
367chapter act.
368     (b)  Revoking or suspending a license previously granted
369under pursuant to this chapter act.
370     (c)  Placing a licensee or an applicant for a license on
371probation for a period of time and subject to such conditions as
372the division office specifies.
373     (d)  Issuing a reprimand.
374     (e)  Imposing an administrative fine not to exceed $5,000
375for each separate act or violation.
376     (3)  If a person seeking licensure is anything other than a
377natural person, the eligibility requirements of this section
378apply to each direct or ultimate equitable owner of 10 percent
379or more of the outstanding equity interest of such entity and to
380each director, general partner, and executive officer.
381     (4)  It is sufficient cause for the division office to take
382any of the actions specified in subsection (2), as to any entity
383other than a natural person, if the division office finds
384grounds for such action as to any member of such entity, as to
385any executive officer or director of the entity, or as to any
386person with power to direct the management or policies of the
388     (5)  Each licensee is subject to the provisions of
389subsection (2) for the acts of employees and agents of the
390licensee if the licensee knew or should have known about such
392     (6)  Licensure under this chapter act may be denied or any
393license issued under this chapter act may be suspended or
394restricted if an applicant or licensee is charged, in a pending
395enforcement action or pending criminal prosecution, with any
396conduct that would authorize denial or revocation under this
398     Section 8.  Section 537.007, Florida Statutes, is amended
399to read:
400     537.007  Remedies for title loans made without licensure.-
401Any title loan made without benefit of a license is void, in
402which case the person making the title loan forfeits the right
403to collect any moneys, including principal and interest charged
404on the title loan, from the borrower in connection with such
405agreement. The person making the title loan must shall return to
406the borrower the loan property, the titled personal property
407pledged or the fair market value of such titled personal
408property, and all principal and interest paid by the borrower.
409The borrower is entitled to receive reasonable attorney's fees
410and costs in any action brought by the borrower to recover from
411the person making the title loan the loan property, the titled
412personal property, or the principal and interest paid by the
414     Section 9.  Section 537.008, Florida Statutes, is amended
415to read:
416     537.008  Title loan agreement.-
417     (1)  When At the time a title loan lender makes a title
418loan, the lender and the borrower shall execute a title loan
419agreement, which must shall be legibly typed or written in
420indelible ink and completed as to all essential provisions
421before prior to execution by the borrower and lender. The title
422loan agreement must shall include the following information:
423     (a)  The make, model, and year of the motor vehicle that
424serves as collateral for titled personal property to which the
425loan property relates.
426     (b)  The vehicle identification number, or other comparable
427identification number, along with the license plate number, if
428applicable, of the motor vehicle that serves as collateral for
429titled personal property to which the loan property relates.
430     (c)  The name, residential address, date of birth, physical
431description, and social security number of the borrower.
432     (d)  The date upon which the title loan agreement is
433executed by the title loan lender and the borrower.
434     (e)  The identification number and the type of
435identification, including the issuing agency, accepted from the
437     (f)  The amount of money advanced, designated as the
438"amount financed."
439     (f)(g)  The maturity date of the title loan agreement,
440which must shall be at least 120 30 days, but not more than 1
441year, after the date upon which the title loan agreement is
442executed by the title loan lender and the borrower.
443     (h)  The total title loan interest payable on the maturity
444date, designated as the "finance charge."
445     (i)  The amount financed plus finance charge, which must be
446paid to reclaim the loan property on the maturity date,
447designated as the "total amount of all payments."
448     (g)(j)  The "amount financed," "finance charge," "total of
449payments," and "annual percentage rate" interest rate, computed
450and disclosed in accordance with the federal Truth in Lending
451Act and regulations adopted by the Federal Reserve Board under
452pursuant to the federal Truth in Lending act., designated as the
453"annual percentage rate."
454     (2)  The following information must shall also be printed
455on all title loan agreements:
456     (a)  The name and physical address of the title loan
458     (b)  The name and address of the division Department of
459Financial Services as well as a telephone number to which
460consumers may address complaints.
461     (c)  The following statement in at least not less than 12-
462point, boldface type, immediately above the borrower's signature
507     1.  If the borrower fails to repay the full amount of the
508title loan on or before the end of the maturity date or any
509extension of the maturity date and fails to make a payment on
510the title loan within 30 days after the end of the maturity date
511or any extension of the maturity date, whichever is later, the
512title loan lender may take possession of the borrower's motor
513vehicle and sell the vehicle in the manner provided by law. If
514the vehicle is sold, the borrower is entitled to any proceeds of
515the sale in excess of the amount owed on the title loan and the
516reasonable expenses of repossession and sale.
517     2.  If the title loan agreement is lost, destroyed, or
518stolen, the borrower should immediately so advise the issuing
519title loan lender in writing.
520     (d)  The statement that "The borrower represents and
521warrants that the motor vehicle that serves as collateral for
522titled personal property to which the title loan property
523relates is not stolen and does not have any has no liens or
524encumbrances against it, the borrower has the right to enter
525into this transaction, and the borrower is prohibited from
526applying will not apply for a duplicate certificate of title
527while the title loan agreement is in effect."
528     (e)  A blank line for the signature of the borrower and the
529title loan lender or the lender's agent.
531Each owner All owners of the motor vehicle that serves as
532collateral for the title loan titled personal property must sign
533the title loan agreement.
534     (3)  At the time of the transaction, the title loan lender
535shall deliver to the borrower an exact copy of the executed
536title loan agreement.
537     (4)  Upon execution of a title loan agreement, the title
538loan lender must may take possession of the certificate of title
539of the motor vehicle that serves as collateral for the loan, and
540within 7 business days thereafter, record the lender's lien on
541such title as provided by law. The title loan lender
542subsequently retains property and retain possession of such
543certificate of title property until the title loan such property
544is repaid in full redeemed. The borrower shall have the
545exclusive right to redeem the loan property by repaying all
546amounts legally due under the agreement. When a title the loan
547property is repaid in full redeemed, the lender shall
548immediately release the lien on return the certificate of title
549loan property and return the certificate of title to the
550borrower commence action to release any security interest in the
551titled personal property. During the term of the agreement or
552any extension of the agreement, a title loan lender may retain
553physical possession of the loan property only. A title loan
554lender may shall not require a borrower to provide any
555additional collateral security or guaranty as a condition to
556entering into a title loan transaction. A title loan lender may
557not enter into a title loan agreement if the certificate of
558title of the motor vehicle that serves as collateral for the
559loan evidences that the motor vehicle is security for another
560loan or is otherwise encumbered by a lien.
561     Section 10.  Section 537.009, Florida Statutes, is amended
562to read:
563     537.009  Recordkeeping; reporting; safekeeping of
565     (1)  A Every title loan lender shall maintain, at the
566lender's title loan office, such books, accounts, and records of
567the business conducted under the license issued for such place
568of business as will enable the division office to determine the
569licensee's compliance with this chapter act.
570     (2)  The division office may authorize the maintenance of
571books, accounts, and records at a location other than the
572lender's title loan office. The division office may require
573books, accounts, and records to be produced and available at a
574reasonable and convenient location in this state within a
575reasonable period of time after such a request.
576     (3)  A The title loan lender shall maintain the original
577copy of each completed title loan agreement on the premises of
578the title loan office premises, and may shall not obliterate,
579discard, or destroy any such original copy, for a period of at
580least 2 years after making the final entry on any loan recorded
581in such office or after an examination by the division Office of
582Financial Regulation, whichever is later.
583     (4)  A certificate of title that Loan property which is
584held by delivered to a title loan lender must shall be securely
585stored and maintained at the title loan office unless the
586certificate of title is loan property has been forwarded to the
587appropriate state agency for the purpose of having a lien
588recorded or deleted.
589     (5)  The department commission may adopt rules prescribing
590prescribe by rule the books, accounts, documents, and records,
591and the minimum information to be shown in the books, accounts,
592documents, and records, of licensees so that such records will
593enable the division office to determine compliance with the
594provisions of this chapter act. Such rules In addition, the
595commission may include prescribe by rule requirements for the
596destruction of books, accounts, records, and documents retained
597by the licensee after completion of the time period specified in
598subsection (3).
599     Section 11.  Section 537.011, Florida Statutes, is amended
600to 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
605loan at rates not to exceed the following:
606     (a)  Twenty-two percent per month on that portion of the
607principal which does not exceed $700.
608     (b)  Eighteen percent per month on that portion of the
609principal which exceeds $700 but does not exceed $1,400.
610     (c)  Fifteen percent per month on that portion of the
611principal which exceeds $1,400.
612     (2)  Interest may be charged only upon principal balances
613outstanding from time to time. Interest may not be charged on an
614add-on basis and may not be compounded, paid, deducted, or
615received in advance. For title loans that exceed $700, a
616licensee may accrue interest using a single blended interest
617rate, but the interest charged may not exceed the maximum charge
618allowed under subsection (1).
619     (3)  Notwithstanding subsection (1) or any provision of a
620title loan agreement, interest may not accrue on the principal
621balance of a title loan after:
622     (a)  The date upon which the motor vehicle that serves as
623collateral for the title loan is repossessed by the licensee
624making the loan. However, if the licensee allows the borrower to
625redeem the motor vehicle while any portion of the principal
626balance remains unpaid, interest accrual may resume upon the
627borrower's regaining possession of the motor vehicle; or
628     (b)  The 60th day after the borrower fails to make a
629monthly payment on the title loan as required by the loan
630agreement, unless the borrower fails to surrender the motor
631vehicle and conceals, thereby preventing repossession of, the
632motor vehicle. However, after the 60th day following the
633borrower's failure to make a monthly payment but before the
634licensee repossesses the motor vehicle, upon the borrower's
635making all delinquent payments, interest accrual may resume and
636interest may be added to the borrower's principal balance for
637the period from the day that interest accrual ceased under this
638paragraph through the date on which the borrower made all
639delinquent payments.
640     (4)  A title loan shall be a term loan providing for
641repayment of the principal and interest in substantially equal
642monthly installments of principal and interest. However, this
643section does not prohibit a loan agreement from providing for an
644odd first-payment period and an odd first payment greater than
645other monthly payments because of such odd first-payment period.
646     (5)  A title loan agreement may not be extended, renewed,
647or refinanced.
648     (6)  A licensee may impose a late charge for the borrower's
649failure to make timely payment of any amount due under the loan
650agreement, but such late charge may not exceed the amount
651allowed 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
654allowed under this section, a licensee may not directly or
655indirectly charge, contract for, collect, receive, recover, or
656require a borrower to pay any further or other fee, charge, or
657amount whatsoever, except for:
658     (a)  A licensee's actual cost of perfecting its security
659interest in the motor vehicle that serves as collateral for the
660borrower's obligations under the title loan agreement.
661     (b)  The licensee's reasonable and actual costs of
662repossession, storage, and sale of the motor vehicle, if the
663borrower defaults under the terms of the title loan agreement.
664     (9)  If any excess interest or fee is charged and such
665charge resulted from a bona fide error by the title loan lender
666or an agent of the title loan lender, the lender shall refund
667the excess interest or fee to the borrower within 30 days after
668discovery by the lender of the error or within 30 days after
669notice of the error from the borrower, whichever occurs first.
670     (10)  If any excess interest or fee is charged by the title
671loan lender or an agent of the title loan lender in an effort to
672intentionally circumvent the maximum title loan interest and
673fees allowed by this chapter:
674     (a)  The title loan agreement is void.
675     (b)  The title loan lender must refund to the borrower any
676interest paid on the title loan and return to the borrower the
677certificate of title with the lender's lien released.
678     (c)  The title loan lender forfeits the lender's right to
679collect any principal owed by the borrower on the title loan.
681The division may order a title loan lender or an agent of the
682title loan lender to comply with this subsection.
683     Section 12.  Section 537.012, Florida Statutes, is amended
684to 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;
688repossession and disposal of pledged property; excess proceeds.-
689     (1)  Except as otherwise provided in subsection (5), a
690licensee taking a security interest in a motor vehicle under
691this chapter is limited, upon default by the borrower, to
692seeking repossession of, preparing for sale of, and selling the
693motor vehicle in accordance with Article 9 of the Uniform
694Commercial Code as provided in chapter 679. The licensee may not
695collect or charge the costs of repossessing and selling the
696motor vehicle described in s. 537.011(8)(b) unless:
697     (a)  The licensee, at least 10 days before repossessing the
698motor vehicle, sends to the borrower, by first-class mail,
699written notice advising the borrower that the title loan is in
700default and stating that the motor vehicle may be repossessed
701unless the principal and interest owed under the loan agreement
702are paid; and
703     (b)  The borrower does not pay such principal and interest
704before the date that the motor vehicle is repossessed by, or at
705the direction of, the licensee.
707A licensee may not repossess a motor vehicle securing a title
708loan before the date specified in the notice required under this
709subsection. Except as otherwise provided in subsection (5), a
710licensee may not seek or obtain a personal money judgment
711against a borrower for any amount owed under a loan agreement or
712any deficiency resulting after the sale of a motor vehicle. If
713the borrower voluntarily surrenders the motor vehicle, the
714notice requirements of this subsection do not apply.
715     (2)  At least 15 days before the sale of a motor vehicle, a
716licensee must notify the borrower of the date and time after
717which the motor vehicle is subject to sale and provide the
718borrower with a written accounting of the principal amount due
719to the licensee, interest accrued through the date that the
720licensee took possession of the motor vehicle, and any
721reasonable expenses incurred to date by the licensee in taking
722possession of, preparing for sale of, storing, and selling the
723motor vehicle. At any time before such sale, the licensee must
724allow the borrower to redeem the motor vehicle by tendering cash
725or any other valid funds instrument for the amount owed.
726     (3)  Within 60 days after the licensee's receipt of funds
727from the sale of a motor vehicle, the borrower is entitled to
728receive all proceeds from such sale of the motor vehicle in
729excess of the principal amount due to the licensee, interest
730accrued through the date the licensee took possession, and the
731reasonable expenses incurred by the licensee in taking
732possession of, storing, preparing for sale of, and selling the
733motor vehicle.
734     (4)  Except in the case of fraud or a voluntary surrender
735of the motor vehicle, a licensee may not take possession of a
736motor vehicle until the borrower is in default under the loan
737agreement. Except as otherwise provided in this chapter, the
738repossession and sale of a motor vehicle is subject to Article 9
739of the Uniform Commercial Code as provided in chapter 679.
740     (5)  Notwithstanding any provision of law, upon default by
741a borrower, a licensee may seek a personal money judgment
742against the borrower for any amounts owed under the loan
743agreement if the borrower impairs the licensee's security
744interest by:
745     (a)  Intentionally damaging or destroying the motor
747     (b)  Intentionally concealing the motor vehicle;
748     (c)  Giving the licensee a lien in a motor vehicle that is
749already encumbered by an undisclosed prior lien; or
750     (d)  Subsequently giving a security interest in, or
751selling, the motor vehicle that serves as collateral for the
752title loan to a third party without the licensee's written
754     Section 13.  Section 537.013, Florida Statutes, is amended
755to read:
756     537.013  Prohibited acts.-
757     (1)  A title loan lender, or any agent or employee of a
758title loan lender, may shall not:
759     (1)(a)  Falsify or fail to make an entry of any material
760matter in a title loan agreement or any extension of such
762     (2)(b)  Refuse to allow the division office to inspect
763completed title loan agreements and supporting documents,
764extensions of such agreements, or loan property during the
765ordinary operating hours of the title loan lender's business or
766other times acceptable to both parties.
767     (3)(c)  Enter into a title loan agreement with a person
768younger than under the age of 18 years of age.
769     (4)(d)  Make any agreement requiring or allowing for the
770personal liability of a borrower beyond the limits authorized in
771s. 537.012 or the waiver of any provision of the provisions of
772this chapter act.
773     (5)(e)  Knowingly enter into a title loan agreement with
774any person who is under the influence of drugs or alcohol when
775such condition is visible or apparent, or with any person using
776a name other than such person's own name or the registered name
777of the person's business.
778     (6)(f)  Fail to exercise reasonable care, as defined by
779department commission rule, in the safekeeping of certificates
780of title loan property or of motor vehicles titled personal
781property repossessed under pursuant to this chapter act.
782     (7)(g)  Fail to return the borrower's certificate of title
783and, if repossessed, the borrower's motor vehicle loan property
784or repossessed titled personal property to a borrower, with any
785and all of the title loan lender's liens on the motor vehicle
786property properly released, upon payment of the full amount due
787the title loan lender, unless the motor vehicle property has
788been seized or impounded by an authorized law enforcement
789agency, taken into custody by a court, or otherwise disposed of
790by court order. If, while a title loan lender is awaiting return
791of a certificate of title pending the recording of the lender's
792lien, the borrower repays the title loan in full, the lender
793shall release its lien and return the certificate of title to
794the borrower within 3 days after regaining possession thereof.
795     (8)(h)  Sell or otherwise charge for any type of insurance
796in connection with a title loan agreement.
797     (9)(i)  Intentionally charge or receive any finance charge,
798interest, or fees that which are not authorized under pursuant
799to this chapter or fail to timely refund such unauthorized
800finance charge, interest, or fees received due to a bona fide
801error act.
802     (10)(j)  Act as a title loan lender without an active
803license issued under this chapter act.
804     (11)(k)  Refuse to accept partial payments toward
805satisfying any obligation owed under a title loan agreement or
806extension of such agreement.
807     (12)(l)  Charge a prepayment penalty.
808     (13)(m)  Engage in the business of selling new or used
809motor vehicles, or parts for motor vehicles.
810     (14)(n)  Act as a title loan lender under this chapter act
811within a place of business in which the licensee solicits or
812engages in business outside the scope of this chapter act if the
813division office determines that the licensee's operation of and
814conduct pertaining to such other business results in an evasion
815of this chapter act. Upon making such a determination, the
816division office shall order the licensee to cease and desist
817from such evasion; provided, no licensee shall engage in the
818pawnbroker business.
819     (15)  Engage in the pawnbroker business or deferred
820presentment business or allow another person to engage in such
821business at the licensee's title loan office.
822     (16)  Cause a borrower to be obligated for a title loan for
823a principal amount that exceeds 50 percent of the fair market
824value of the motor vehicle in which the licensee is securing an
825interest, which value shall be determined by reference to the
826market value of similarly situated motor vehicles specified in a
827recognized 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
831to 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
835borrower under a title loan agreement to rescind the title loan
836without cost or further obligation if the borrower returns the
837full amount of the loan proceeds in cash or returns the original
838loan check before the close of business on the business day
839immediately following the date on which the title loan agreement
840is executed.
841     Section 15.  Section 537.015, Florida Statutes, is amended
842to read:
843     537.015  Criminal penalties.-
844     (1)  Any person who acts as a title loan lender without
845first securing the license prescribed by this chapter act
846commits a felony of the third degree, punishable as provided in
847s. 775.082, s. 775.083, or s. 775.084.
848     (2)  In addition to any other applicable penalty, any
849person who willfully violates any provision of this chapter act
850or who willfully makes a false entry in any record specifically
851required by this chapter act commits a misdemeanor of the first
852degree, punishable as provided in s. 775.082 or s. 775.083.
853     Section 16.  Section 537.016, Florida Statutes, is amended
854to read:
855     537.016  Subpoenas; enforcement actions; rules.-
856     (1)  The division office may issue and serve subpoenas to
857compel the attendance of witnesses and the production of
858documents, papers, books, records, and other evidence before the
859division office in any matter pertaining to this chapter act.
860The division office may administer oaths and affirmations to any
861person whose testimony is required. If any person refuses to
862testify or; produce books, records, and documents; or otherwise
863refuses to obey a subpoena issued under this section, the
864division office may enforce the subpoena in the same manner as
865subpoenas issued under the Administrative Procedure Act are
866enforced. Witnesses are entitled to the same fees and mileage as
867they are entitled to by law for attending as witnesses in the
868circuit court, unless such examination or investigation is held
869at the place of business or residence of the witness.
870     (2)  In addition to any other powers conferred upon the
871division office to enforce or administer this chapter act, the
872division office may:
873     (a)  Bring an action in any court of competent jurisdiction
874to enforce or administer this chapter act, any rule or order
875adopted under this chapter act, or any written agreement entered
876into with the division office. In such action, the division
877office may seek any relief at law or equity, including a
878temporary or permanent injunction, appointment of a receiver or
879administrator, or an order of restitution.
880     (b)  Issue and serve upon a person an order requiring such
881person to cease and desist and take corrective action whenever
882the division office finds that such person is violating, has
883violated, or is about to violate any provision of this chapter
884act, any rule or order adopted under this chapter act, or any
885written agreement entered into with the division office.
886     (c)  Whenever the division office finds that conduct
887described in paragraph (b) presents an immediate danger to the
888public health, safety, or welfare requiring an immediate final
889order, the division office may issue an emergency cease and
890desist order reciting with particularity the facts underlying
891such findings. The emergency cease and desist order is effective
892immediately upon service of a copy of the order on the
893respondent named in the order and shall remain effective for 90
894days. If the division office begins nonemergency proceedings
895under paragraph (b), the emergency cease and desist order
896remains effective until the conclusion of the proceedings under
897ss. 120.569 and 120.57.
898     (3)  The department commission may adopt rules to
899administer this chapter act.
900     Section 17.  Section 537.017, Florida Statutes, is amended
901to read:
902     537.017  Investigations and complaints.-
903     (1)  The division office may investigate make any
904investigation and examine examination of any licensee or other
905person whom the division office deems necessary to determine
906compliance with this chapter act. For such purposes, the
907division office may examine the books, accounts, records, and
908other documents or matters of any licensee or other person. The
909division office may compel the production of all relevant books,
910records, and other documents and materials relative to an
911examination or investigation. Examinations shall not be made
912more often than once during any 12-month period unless the
913division office has reason to believe the licensee is not
914complying with the provisions of this chapter act.
915     (2)  The division office shall conduct all examinations at
916a convenient location in this state unless the division office
917determines that it is more effective or cost-efficient to
918perform an examination at the licensee's out-of-state location.
919For an examination performed at the licensee's out-of-state
920location, the licensee shall pay the travel expense and per diem
921subsistence at the rate provided by law for up to thirty 8-hour
922days per year for each of the division's examiners office
923examiner who participates in such an examination. However, if
924the examination involves or reveals possible fraudulent conduct
925by the licensee, the licensee shall pay the travel expenses and
926per diem subsistence provided by law, without limitation, for
927each participating examiner.
928     (3)  Any person having reason to believe that a violation
929of any provision of this chapter act has occurred been violated
930may file with the department of Financial Services or the office
931a written complaint setting forth the details of such alleged
932violation, and the division office may investigate the such
934     Section 18.  Section 537.018, Florida Statutes, is
936     Section 19.  This act shall take effect July 1, 2011.

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