Jacksonville Bankruptcy Lawyer Blog
Florida residents often roll off car lots without knowing if the high interest rate financing they received is even legal. There are protections from high interest rates for people in the Florida Statutes, but you need to know the protections are there and have a lawyer whose prepared to bring an action on your behalf.
Florida Statutes Title 34 §520.08 states that:
“(1) Notwithstanding the provisions of any other law, the finance charge, exclusive of insurance, shall not exceed the following rates:
(a) Class 1. Any new motor vehicle designated by the manufacturer by a year model not earlier than the year in which the sale is made–$10 per $100 per year.
(b) Class 2. Any new motor vehicle not in Class 1 and any used motor vehicle designated by the manufacturer by a year model of the same or not more than 2 years prior to the year in which the sale is made–$11 per $100 per year.
(c) Class 3. Any used motor vehicle not in Class 2 and designated by the manufacturer by a year model not more than 4 years prior to the year in which the sale is made–$15 per $100 per year.
(d) Class 4. Any used motor vehicle not in Class 2 or Class 3 and designated by the manufacturer by a year model more than 4 years prior to the year in which the sale is made–$17 per $100 per year.”
For example, 1994 Chrysler Concorde is purchased and $6,524.35 is financed. The finance charge is $3,704.33 and the annual percentage rate is 27.5%. Forty-two payments are to be made monthly at the rate of $243.54. To determine whether the finance charge violates §520.08, the following equation is used (mouse-over a number to see where it came from):
$17 x ($6,524.35 / $100) x (42 / 12) = $3,881.78
Since the $3,881.78 allowable finance charge is greater than the $3,704.33 actually charged, this example of financing does not violate §520.08. If your contract indicates that you are being charged in violation of this statute, contact a Jacksonville Consumer Law Attorney at (904) 685-1200 for a free consultation that may end up with you paying less to keep your vehicle and the financier paying your attorney’s fees.