Payday Loan Laws




Payday Loan Laws & Payday Loan Legislation
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Free Payday Loan Newsletter. The frequency is typically once each month. If you have an interest in the payday loan industry, YOU NEED OUR Payday Loan NEWSLETTER!

WE PROMISE to never sell, give-away, or abuse your contact info. You will receive a confirmation email from us immediately.

Florida Payday loan laws. Florida Payday loan legislation. 10% of the face amount of the payday loan plus a maximum $5.00 verification fee.

*New Florida Payday Loan Law to go into effect. Read more...The permitted time period is a minimum of 7 days and a maximum of 31 days. The maximum amount of the cash advance is $500. There are no rollovers allowed.

For a thorough discussion of the payday loan industry and access to our payday loan training materials, we recommend you proceed to How to start a payday, installment or car title loan company

Payday Lenders (Deferred Presentment Providers)

A payday lender provides a short-term loan in exchange for a person's check and a fee. The lender agrees to hold the check for a period of time before depositing it.

In Florida, the Florida Office of Financial Regulation's Division of Consumer Finance regulates payday lenders. You can verify a license or file a complaint on the OFR website or call (850) Its Your Money (850-487-9687), if you have additional questions.

*Great News for PDL's in Florida

The state of Florida is eliminating much of the friction that has existed for payday loan, personal loan and signature loan businesses .

Florida Gov. Rick Scott signed Payday Loan Bill (SB 920) on Monday that doubles the current limit on payday loans from from $500 to $1,000 and enables lenders to offer 60-to-90 day loans.

This year's bill was the most significant expansion of the payday loan industry since the companies were first allowed to operate in the state in the early 2000s. Companies like Amscot will now offer up to a $1,000 loan and collect up to $214 in fees. Before, the companies could only offer $500 loans and collect $55 in fees.

Of course, the so-called "consumer advocates" (for you and me that translates into banks, credit unions, pawn shops... all our competitors) have said the new rules will create a debt trap for poor people. Ah... if only they had a clue!

Existing lenders, Amscot Financial for example, have said they needed to change the law because of potential new federal regulations.

This year's bill was the most significant expansion of the payday loan industry since the companies were first allowed to operate in the state in the early 2000s. Companies like Amscot will now offer up to a $1,000 loan and collect up to $214 in fees. Before, the companies could only offer $500 loans and collect $55 in fees.

Advocates noted that payday loans were cheaper and less nefarious than credit cards and pawn shops, two other types of short-term credit. Unlike credit cards, Florida does not allow borrowers to take out more than one payday loan at a time. Even ardent opponents of payday lenders acknowledge that banks and credit unions do a poor job supplying credit to underprivileged communities.

"If you're in a regulated business, or really any business, you have to be engaged in the political process," said the CEO of Amscot Financial. "All we ask is to have our voice heard and the chance to make our case."

The bill authorizes deferred presentment installment transactions under Florida law.

A deferred presentment installment transaction must be fully amortizing and repayable in consecutive installments, which must be as equal as mathematically practicable. The term of a deferred presentment installment transaction may not be less than 60 days or more than 90 days and the time between installment payments must be at least 13 days but not greater than 1 calendar month.

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The maximum face amount of a check taken for a deferred presentment installment transaction may not exceed $1,000, exclusive of fees. The maximum fees that may be charged on a deferred presentment installment transaction are 8 percent of the outstanding transaction balance on a biweekly basis.

Fees for a deferred presentment installment transaction are calculated using simple interest. Prepayment penalties are prohibited.

The bill retains current law in prohibiting a provider from entering into a deferred presentment transaction with any person who has an outstanding deferred presentment transaction or whose previous transaction has been terminated for less than 24 hours. If a drawer timely informs the provider in writing or in person that they cannot redeem or pay in full in cash the amount due and owing, the provider must provide a grace period for payment of a scheduled installment.

Effective Date: 7/1/2019

Consumers who take out a payday loan from a licensed lender are entitled to the following protections under Florida law:

  • A borrower may borrow up to $500 per loan.
  • A borrower may only have one outstanding loan at any time. This is tracked through a statewide database of all loans taken out.
  • The maximum fee is 10 percent of the amount borrowed plus a $5.00 verification fee.
  • The loan term cannot exceed 31 days or be less than 7 days.
  • Certain contract terms that limit a borrower's rights are prohibited.
  • A borrower must pay a previous loan in full and wait 24 hours before entering into another loan. This period is designed to prevent loans from being rolled over into new loans and to give consumers the opportunity to consider other financial alternatives.
  • If at the end of the loan term, the borrower is unable to pay the loan in full, the loan provider must provide a 60-day grace period without additional charge. The grace period is dependent upon the borrower making an appointment with a Consumer Credit Counseling Service within 7 days and completing the counseling within the 60-day grace period.

Florida Payday Loan Laws & Legislaion State Information

Legal Status: Legal

Citation:
Fl. Stat. Ann. ยง 560.401 et seq.; Rule 69V-560.901-912

Loan Terms:
Maximum Loan Amount: $500
Loan Term: 7-31 days
Maximum Finance Rate and Fees: 10% + verification fee
Finance Charge for 14-day $100 loan: $15
APR for 14-day $100 loan: 390%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: One
Rollovers Permitted: None (cannot rollover)
Cooling-off Period: 24 hours
Repayment Plan: Yes

Collection Limits:
Collection Fees: All charges imposed on the lender by any financial institution; lender not entitled to treble damages
Criminal Action: Prohibited

Where to Complain, Get Information:
Regulator: Florida Office of Financial Regulation
Address: Division of Securities and Finance, 200 E. Gaines Street Tallahassee FL 32399
Phone: (850) 410-9805
Fax: (850) 410-9748
Regulatory Contact: ,
Regulator Website

Licensee Database

Online Resources:
Deferred Presentment Providers Information Page