Payday Loan in Florida
Legal Status: Legal
Citation:
Fl. Stat. Ann. § 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
Applicability: To persons who are registered to provide currency or payment instruments in exchange for a person’s check and who agree to hold that person’s check for a period of time prior to presentment, deposit, or redemption. Otherwise consumer finance act applies. Fla. Stat. Ann. § 516.031 (30% per year on the first $2,000; 24% per year on $2,000 – $3,000; 18% per on $3,000 – $25,000).
Exemptions: Financial institutions (a state or federal association, bank, savings bank, trust company, international bank agency, international branch, representative office or international administrative office, or credit union) are exempt.
Registrations requirements: Deferred presentment providers (“providers”) must register and must file a sworn declaration of intent to engage in deferred presentment transactions along with a filing fee of $1,000. Registrations must be renewed by submitting a nonrefundable deferred presentment provider renewal fee of $1,000. Any person engaging in a registered activity shall have a net worth of at least $100,000 and an additional net worth of $50,000 per additional location up to a maximum of $500,000. Applicant must also provide a corporate surety bond in such amount as determined by commission rule, but not to exceed $250,000. The commission and office may require an additional amount up to $500,000 for extraordinary circumstances.
Required disclosures: Every deferred presentment transaction shall be documented in a written agreement signed by both the provider and the drawer that contains: The name or trade name, address, and telephone number of the provider and the name and title of the person who signs the agreement on behalf of the provider; the date the deferred presentment transaction was made; the amount of the drawer’s check; the length of deferral period; the last day of the deferment period; the address and telephone number of the office and the Division of Consumer Services of the Department of Financial Services; a clear description of the drawer’s payment obligations under the deferred presentment transaction; the transaction number assigned by the office’s database. Every provider shall furnish to the drawer a copy of the deferred presentment transaction agreement. The provider must comply with the disclosure requirements of the federal Truth-in-Lending Act. A copy of the disclosure must be provided to the drawer at the time the deferred presentment transaction is initiated and the following notice must be placed in a prominent location on each agreement in at least 14-point type in substantially the following form and must obtain the signature of the drawer where indicated. NOTICE: 1. STATE LAW PROHIBITS YOU FROM HAVING MORE THAN ONE DEFERRED PRESENTMENT AGREEMENT AT ANY ONE TIME. STATE LAW ALSO PROHIBITS YOU FROM ENTERING INTO A DEFERRED PRESENTMENT AGREEMENT WITHIN 24 HOURS OF TERMINATING ANY PREVIOUS DEFERRED PRESENTMENT AGREEMENT. FAILURE TO OBEY THIS LAW COULD CREATE SEVERE FINANCIAL HARDSHIP FOR YOU AND YOUR FAMILY. YOU MUST SIGN THE FOLLOWING STATEMENT: I DO NOT HAVE AN OUTSTANDING DEFERRED PRESENTMENT AGREEMENT WITH ANY DEFERRED PRESENTMENT PROVIDER AT THIS TIME. I HAVE NOT TERMINATED A DEFERRED PRESENTMENT AGREEMENT WITHIN THE PAST 24 HOURS. (Signature of Drawer) 2. YOU CANNOT BE PROSECUTED IN CRIMINAL COURT FOR A CHECK WRITTEN UNDER THIS AGREEMENT, BUT ALL LEGALLY AVAILABLE CIVIL MEANS TO ENFORCE THE DEBT MAY BE PURSUED AGAINST YOU. 3. STATE LAW PROHIBITS A DEFERRED PRESENTMENT PROVIDER (THIS BUSINESS) FROM ALLOWING YOU TO “ROLL OVER” YOUR DEFERRED PRESENTMENT TRANSACTION. THIS MEANS THAT YOU CANNOT BE ASKED OR REQUIRED TO PAY AN ADDITIONAL FEE IN ORDER TO FURTHER DELAY THE DEPOSIT OR PRESENTMENT OF YOUR CHECK FOR PAYMENT. IF YOU INFORM THE PROVIDER IN PERSON THAT YOU CANNOT COVER THE CHECK OR PAY IN FULL THE AMOUNT OWING AT THE END OF THE TERM OF THIS AGREEMENT, YOU WILL RECEIVE A GRACE PERIOD EXTENDING THE TERM OF THE AGREEMENT FOR AN ADDITIONAL 60 DAYS AFTER THE ORIGINAL TERMINATION DATE, WITHOUT ANY ADDITIONAL CHARGE. THE DEFERRED PRESENTMENT PROVIDER SHALL REQUIRE THAT YOU, AS A CONDITION OF OBTAINING THE GRACE PERIOD, COMPLETE CONSUMER CREDIT COUNSELING PROVIDED BY AN AGENCY INCLUDED ON THE LIST THAT WILL BE PROVIDED TO YOU BY THIS PROVIDER. YOU MAY ALSO AGREE TO COMPLY WITH AND ADHERE TO A REPAYMENT PLAN APPROVED BY THAT AGENCY. IF YOU DO NOT COMPLY WITH AND ADHERE TO A REPAYMENT PLAN APPROVED BY THAT AGENCY, WE MAY DEPOSIT OR PRESENT YOUR CHECK FOR PAYMENT AND PURSUE ALL LEGALLY AVAILABLE CIVIL MEANS TO ENFORCE THE DEBT AT THE END OF THE 60-DAY GRACE PERIOD.
Loan terms: The face amount of a check taken for deferred presentment may not exceed $500 exclusive of the fees allowed by this part. No deferred presentment agreement shall be for a term in excess of 31 days or less than 7 days. The deferred presentment agreement and drawer’s check shall bear the same date, and the number of days of the deferment period shall be calculated from this date. The provider shall maintain a common database and shall verify whether that provider or an affiliate has an outstanding transaction with a particular person or has terminated a transaction with that person within the previous 24 hours. The provider shall access the office’s database established and shall verify whether any other deferred presentment provider has an outstanding transaction with a particular person or has terminated a transaction with that person within the previous 24 hours. If the drawer informs the provider in person that the drawer cannot redeem or pay in full in cash the amount due and owing the provider, the provider shall provide a grace period extending the term of the agreement for an additional 60 days after the original termination date, without any additional charge. The provider shall require that as a condition of providing this grace period, that within the first 7 days of the grace period the drawer make an appointment with a consumer credit counseling agency within 7 days after the end of the deferment period and complete the counseling by the end of the grace period. The drawer may agree to, comply with, and adhere to a repayment plan approved by the counseling agency. If the drawer agrees to comply with and adhere to a repayment plan approved by the counseling agency, the provider is also required to comply with and adhere to that repayment plan. The provider may not deposit or present the drawer’s check for payment before the end of the 60-day grace period unless the drawer fails to comply with such conditions or the drawer fails to notify the provider of such compliance. The statute contains specific disclosure requirements regarding the repayment options. If a drawer completes an approved payment plan, the provider shall pay one-half of the drawer’s fee for the agreement to the consumer credit counseling agency.
Permitted charges: No provider or its affiliate shall charge fees in excess of 10 percent of the currency or payment instrument provided. However, a verification fee may be charged. The 10-percent fee may not be applied to the verification fee. If a check is returned to a provider due to insufficient funds, a closed account, or a stoppayment order, the provider may pursue all legally available civil remedies to collect the check, including, but not limited to, the imposition of all charges imposed on the provider by any financial institution. In its collection practices, a provider shall comply with the prohibitions against harassment or abuse, false or misleading representations, and unfair practices which are contained A violation of this act constitutes a violation of the Deceptive and Unfair Trade Practices Act.
Prohibited acts: The fees authorized by this section may not be collected before the drawer’s check is presented or redeemed. No provider shall require a person to provide any additional security for the transaction or any extension or require a person to provide any additional guaranty from another person. A provider shall not include any of the following provisions in any written agreement: a hold harmless clause; a confession of judgment clause; any assignment of or order for payment of wages or other compensation for services; a provision in which the drawer agrees not to assert any claim or defense arising out of the agreement; or a waiver of any provision of this part. No provider or person may alter or delete the date on any written agreement or check it holds. No additional fee may be charged by a provider or its affiliate for issuing or cashing the provider’s payment instrument. No provider may rollover a deferred presentment agreement or redeem, extend, or otherwise consolidate a deferred presentment agreement with the proceeds of another transaction made by the same or an affiliated provider. A provider may not enter into a transaction with a person who has an outstanding transaction with that provider or with any other provider, or with a person whose previous transaction with that provider or with any other provider has been terminated for less than 24 hours. The provider may not deposit or present the drawer’s check if the drawer informs the provider in person that the drawer cannot redeem or pay in full in cash the amount due and owing the provider. No additional fees or penalties may be imposed on the drawer by virtue of any misrepresentation made by the drawer as to the sufficiency of funds in the drawer’s account. In no event shall any additional fees be added to the amounts due and owing to the provider.
