Legal Question in Credit and Debt Law in Florida
I borrowed a loan agains my car title, and I am charged $500 for a "Voluntary Debt Cancellation Fee". They are telling me that this charge is "mandatory" not voluntary. Is this charge mandatory in the state of Florda?
Asked on 10/11/12, 6:41 pm
2 Answers from Attorneys
Joseph Justice
The Justice Law Firm
It sounds like they are charging you what is known as a prepayment penalty for paying off the loan early which deprives them of some of the profit they receive from their extremely high interest rates. The title loan industry is not very regulated, but Florida law prohibits this type of penalty under Florida Statutes 537.013(L). You may want to consult with a lawyer who practices consumer protection law as the contract may be unfair and deceptive.
Answered on 10/15/12, 1:11 pm
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