Florida auto loan borrowers have a number of protections!
Whether you are looking for Miami auto loans or Orlando car loans, read on to understand some of the basics of Florida auto loans:
Florida consumer credit protections. State law outlaws unfair discrimination in all credit transactions. If you are denied a Florida car loan, you have a right to be told reason why. Most Florida auto lenders and dealers will send you the grounds for the denial in writing. If you are unsure why, contact the dealer or lender and remind them of this right. You may also be entitled to receive a copy of your credit records. Florida borrowers are entitled to know the contents of their credit records. Florida also has a pre-defined process for handling billing disputes. If you have concerns about Florida auto loans in general or your Florida auto loan in particular, contact:
Director
Florida Dept. of Agriculture and Consumer Service, 2005 Apalachee Parkway, Tallahassee, FL 32399-6500, 850-922-2966, www.800helpfla.com
Economic Crimes Division, Office of the Attorney General, PL-01 The Capitol, Tallahassee, FL 32399, 850-414-3600, myfloridalegal.com
The Florida Lemon Law. In Florida your car may be considered a “lemon” if a qualified repair technition has made three unsuccessful attempts to repair a single problem within 24 months of delivery. It may also be considered a lemon if the vehicle is unavailable for your use due to a defect or problem condition for 15 or more calendar days within the first 24 months of ownership. Should your vehicle fall into either one of these situations, you are required to notify the manufacturer by express or certified mail. They then have 10 calendar days after you deliver the vehicle to a designated dealer to repair the vehicle. If the manufacturer is unable to repair the defect, the state of Florida has developed guidelines for arbitration and made a state-run arbitration process available.
The federal Consumer Credit Protection Act. Passed in 1968, this act introduced federal Truth in Lending disclosures requiring creditors state borrowing costs in easy to understand language so that consumers could understand the charges, compare costs, and shop for the best credit deal. The U.S. government publishes an informative handbook, The Consumer Action Handbook, which includes advice on shopping for a car loan. The Handbook also includes information on how to solve consumer problems, as well as addresses, telephone numbers, and websites where you can file consumer complaints with consumer organizations, corporations, trade associations, BBBs and government agencies. Order your handbook at http://www.consumeraction.gov/index.shtml.
Need help running the numbers on your Florida auto loan?
Know your Florida auto loan principle amount: Use our Florida Auto Loan Calculator
Know your Florida auto loan payment amount: Try our Florida Auto Payment Calculator
Know your Florida auto loan rate: Try our Florida Auto Loan Rate Estimator
A word about bad credit auto loans in Florida
Take out an Orlando car loan, a Miami auto loan or auto finance in any of Florida’s other cities and towns and you will sign a binding contract which gives your creditor key rights in the vehicle until the loan has been completely paid off. The contract and state and federal contract law bind you to performance. Failure to make timely payments carries serious consequences including providing your creditor the right to "repossess" your. The creditor can do so without further legal proceeding and without notifying you in advance. While there are some limitations on how the creditor or its agent can take possession of the car, it generally has wide latitude. If you find yourself in danger of missing payments on your auto loan, consider the following:
While your contract will specifically define “default”, failure to make a timely payments is almost certainly a cause. If you are in danger of missing a payment, be pro-active. Contact your creditor and let them know. Many will agree to delay the payment if they believe you will make good in the future. If you reach an agreement to modify your original contract, for example changing the payment date, make sure it is in writing and signed by both parties to the contract.
Your creditor has wide-ranging rights to seize your car when you default on your loan. They may repossess your car at any time. Further, while they may not use physical force or threats, they may come onto your property to seize the vehicle. Once your car has been repossessed in Florida getting it back is almost impossible. Contact the Division of Consumer Services, Florida Department of Agriculture and Consumer Services at (800) 435-7352.
Defaulting on your Miami auto loan? If you are in default and don’t have the money to make back payments and penalties, consider voluntarily returning the vehicle to the creditor. Doing so may reduce expenses associated with the repossession and the ultimate amount you will end up owing the creditor. You will still be responsible for paying any deficiency on your loan and any repossession costs.
Your creditor may decide to resell your vehicle as compensation for your debt. As their decisions affect your indebtedness, your creditor will notify you about what will happen to the car. If the creditor decided that it wants to keep the car, you may have the right to demand that the car be sold instead. You may choose to exercise this right especially if the car is worth more than the amount owed on the loan. Any resale must be conducted in a "commercially reasonable manner." For example, a resale price which is below fair market value may be unreasonable.
Whatever method is used to dispose of the repossessed vehicle, a creditor may not keep or sell any personal property found inside. This does not include most improvements made to the car, such as a stereo or luggage rack. If your creditor cannot account for valuable articles left in your car, you may be entitled to compensation.
A deficiency judgment is the difference between what you owe on your loan and what your creditor receives when reselling your vehicle. A creditor who has followed the proper procedures for repossession and sale is generally allowed to sue you for to collect the loan balance. If you are sued, you will be notified of a court date. An attorney will be able to advise you as to whether you have grounds to contest a deficiency judgment.
If you need help in dealing with your Florida debts, contact a credit counselor at CCCS. This non-profit organization will try to arrange a repayment plan that works for you and your creditors. Many CCCS services are offered for free. You can locate the nearest CCCS office by contacting the National Foundation for Consumer Credit at (301) 589-5600 or (800) 388-2227. Disclosure: We developed the content for SmartCarCredit™ while working with automotive industry clients. We hope you find it helpful in making informed decisions. While we believe the information to be accurate, we do not guarantee its accuracy.
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