§ 21-3. Motor vehicle title loans.

(a)

Definitions.

(1)

Title loan agreement means a written agreement whereby a secondhand dealer agrees to make a loan of a specific sum of money to the owner of a motor vehicle, and the owner of the motor vehicle agrees to give the secondhand dealer a security interest in a motor vehicle certificate of title owned by the borrower and encumbered only by a title loan agreement.

(2)

Secondhand dealer has the same meaning as used in Section 538.03(l)(a), Florida Statutes, as it may be amended from time to time.

(b)

Maximum interest rate. A secondhand dealer who engages in title loan transactions may not exceed the following interests rates:

(1)

A secondhand dealer may charge an interest rate not to exceed one and one-half (1½) percent per 30-day period the title loan agreement remains outstanding, and unsatisfied. In determining compliance with the maximum interest and finance charges, the computation must be simple interest and not add-on interest or any other interest computation.

(2)

The annual percentage rate that may be charged in a motor vehicle title loan may equal, but not exceed, the annual percentage rate that must be computed and disclosed as required by the Federal Truth in Lending, Act and Regulation Z of the Board of Governors of the Federal Reserve System. When the period for which the charge is computed is more or less than one month, the maximum rate for the period must be computed on a basis of 1/30 the applicable monthly interest rate, multiplied by the number of days of the period.

(3)

Any transaction involving a borrower's delivery of a motor vehicle certificate of title in exchange for the advancement of funds on the condition that the borrower shall or may redeem, or repurchase the certificate of title upon the payment of a sum of money, whether the transaction be characterized as a "buy-sell agreement," "sale-leaseback agreement," or otherwise, shall be deemed a violation of this section if such sum exceeds the amount that a secondhand dealer may collect in a title loan agreement under this section or if the terms of the transaction otherwise conflict with the permitted terms and conditions of a title loan agreement under this section.

(4)

Any fees or taxes paid to a state agency and directly related to an individual title loan transaction may be collected from the borrower and shall be in addition to the permitted finance and interest charge.

(5)

No charges, including interest, in excess of the combined total of all charges permitted by this section shall be allowed.

(c)

Violations and penalties.

(1)

Charging or receiving any finance charge, interest, cost, or fee which is not permitted by this section shall be a violation thereof and shall constitute a misdemeanor of the second degree punishable as provided by law.

(2)

When the county has reasonable cause to believe that a licensee is operating in violation of this section, it may bring a civil action in any court of competent jurisdiction to enforce and administer this section including a temporary or permanent injunction, or appointment of a receiver.

(d)

Additional remedy to borrower; private right of action. Any borrower injured by a violation of this section may bring an action for recovery of damages including, twice the interest previously paid and the forfeiture of all interest charged, or contracted to be charged or reserved. Said borrower may recover reasonable attorney's fees and costs of such action. An award may be entered for punitive damages. The remedies provided for under this section are in addition to any other procedures or remedies for any violation provided in any other law or ordinance.

(Ord. No. 2000-01, §§ 1—4, 2-27-00)