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a ■Ems FLOR■ ASSOC/ATI WYCOUN a oW MAY 2 8 1999 P.O. Box 549 /Tallahassee, FYo®9a1 iZi;,; J Phone. 850/9224300 Suncom.2924300 FAX: 850/488-7S01 Recent attempts by the Legislature to limit the interest charged on car title loans, have failed. Fortunately, so has industry backed legislation, which would have prevented local government from regulating the title loan companies. However, counties and municipalities retain the ability to regulate this industry by local ordinance. The Florida Association of Counties has been asked by members of the Legislature and the Office of the Attorney General, to encourage each county to act quickly in reducing the usurious 264 percent interest rates being charged by car title lenders in Florida. As recent as four years ago, it was a felony under Florida law to charge greater than 45 percent interest on loans. Preying on those less fortunate in our communities, title loan companies now charge up to 22 percent interest per month and eagerly repossess vehicles if borrowers default for 60 days. We feel, as do many others in Florida, local governments exercise of "home rule" authority is more than justified when restoring control upon the interest rates of car title lenders. We have attached a sample ordinance adopted by the city of Jacksonville, that was agreeable to the title loan industry, excluding the interest rate and a private right of action provision. In addition to local regulation, a uniform annual interest rate of 30 percent is also encouraged. If you have any questions or need additional information, please call Alan Shelby at (850) 922-4300. Attachment cc: The Honorable Bob Butterworth, State of Florida Attorney General The Honorable Kendrick Meek, The Florida Senate The Honorable Bill Sublette, The Florida House of Representatives VMAN ZARlCKI RUDY MAIOY EDWARD /. DIXON /UDY D. JOHNSON KAREN T. MARCUS JOHN MANNING EXECUTIVE DIRECTOR PRESIDENT PRESIDENT-ELECT IST NCE PRESIDENT 2ND VICE PRESIDENT IMMEDIATE LEON GADSDEN MARION PALM BEACH PAST PRESIDENT LEE Vice Chairman Adams asked the County Attorney's Office to investigate a similar ordinance limiting interest rates, etc. for Indian River County. Chairman Macht noted that Assistant County Attorney O'Brien has received a copy of the Palm Beach County ordinance and a proposed ordinance will be submitted to the Board shortly. NO FURTHER ACTION REQUIRED OR TARN. JUNE 1, 1999 • -55- BOOK ,{Gt � K —W RECEIVED 'lBUT10N LIST MEMORANDUM 0 11999 Commissioners ✓ AdMIA160 SF JUN Attorney TO: County Commission Chairs CLERK TO THE BOARD Personnel Public Works FROM: Mary Kay Cariseo, Deputy Executive Director Community Dev. Utilities DATE: May 26, 1999 Finance OMB Sam RE: Title Loan Industry Risk M BL Other X21 g - - Recent attempts by the Legislature to limit the interest charged on car title loans, have failed. Fortunately, so has industry backed legislation, which would have prevented local government from regulating the title loan companies. However, counties and municipalities retain the ability to regulate this industry by local ordinance. The Florida Association of Counties has been asked by members of the Legislature and the Office of the Attorney General, to encourage each county to act quickly in reducing the usurious 264 percent interest rates being charged by car title lenders in Florida. As recent as four years ago, it was a felony under Florida law to charge greater than 45 percent interest on loans. Preying on those less fortunate in our communities, title loan companies now charge up to 22 percent interest per month and eagerly repossess vehicles if borrowers default for 60 days. We feel, as do many others in Florida, local governments exercise of "home rule" authority is more than justified when restoring control upon the interest rates of car title lenders. We have attached a sample ordinance adopted by the city of Jacksonville, that was agreeable to the title loan industry, excluding the interest rate and a private right of action provision. In addition to local regulation, a uniform annual interest rate of 30 percent is also encouraged. If you have any questions or need additional information, please call Alan Shelby at (850) 922-4300. Attachment cc: The Honorable Bob Butterworth, State of Florida Attorney General The Honorable Kendrick Meek, The Florida Senate The Honorable Bill Sublette, The Florida House of Representatives VMAN ZARlCKI RUDY MAIOY EDWARD /. DIXON /UDY D. JOHNSON KAREN T. MARCUS JOHN MANNING EXECUTIVE DIRECTOR PRESIDENT PRESIDENT-ELECT IST NCE PRESIDENT 2ND VICE PRESIDENT IMMEDIATE LEON GADSDEN MARION PALM BEACH PAST PRESIDENT LEE Vice Chairman Adams asked the County Attorney's Office to investigate a similar ordinance limiting interest rates, etc. for Indian River County. Chairman Macht noted that Assistant County Attorney O'Brien has received a copy of the Palm Beach County ordinance and a proposed ordinance will be submitted to the Board shortly. NO FURTHER ACTION REQUIRED OR TARN. JUNE 1, 1999 • -55- BOOK ,{Gt � K