Posts Tagged ‘payday loan laws in Florida’

Florida Payday Loan Laws – Your Awareness Is The Key To Get The Best Deal

If you are in Florida and do not want to do business with an unethical lender, you must keep yourself up-to-date with the latest developments in the Florida in order to get help with payday debt. Though a few states in the US have made these lending programs illegal, this type of lending is legalized in Florida provided the lenders meet the required legal requirements. Following is a brief rundown on the various aspects associated with it.

Licensing Requirements

As per the chapter 560 of the 2009 Florida Statute, Part III, it is legally mandatory for all storefront and online payday loan lenders to obtain license as a Money Transmitter in order to be eligible to do business in this field. You can contact the Office of Financial Regulation in Florida to find out if a particular company is duly licensed or not.

Deferred Presentment

Florida payday loan laws also have specific provisions for deferred presentment. If a lending company is engaged in deferred presentment, it means they accept checks from borrowers and hold it for a certain period of time before they cash it. Payday lenders usually hold postdated checks from borrowers until the next payday, which is usually the due date for these types of short-term cash advance loans. As per the laws in Florida, only those companies can engage in these practices that have submitted a Declaration of intent to engage in such transactions.

Restrictions Regarding Time, Amount, And Number Of Loans

The last update was made in Florida payday loan laws in July 2001. You cannot borrow more than $500 as part of these loans. The repayment period should not be longer than 31 days and shorter than 7 days. At a time, you can take only one loan. Automatic renewal or rollovers are also prohibited. It means if you fail to repay within the set due date, the loan will not be renewed automatically. Besides that, the loan agreement must be in writing. Lenders who fail to comply with these rules may have to face legal consequences. The written agreement must include all the information in clear terms, including a summary of the borrower’s obligation, length of the deferment period, check amount, the date of transaction, the rate of interest, and the contact details of the lender and the borrower.

Rules Regarding Collection – Grace Period And Extension

As per Florida payday loan laws, if you fail to make the repayment on the set due date, the lender must give you a 60-day grace period. During this period, no further charges will apply. However, you will be able to take advantage of this legal right only in a situation when you agree to seek credit counseling from a counselor suggested by the lending company. If the counselor finds that you are genuinely in a difficult financial situation, it becomes legally mandatory for the lender to offer a restructured repayment plan as , something that you can afford.

Rate And Fees

The maximum rate of interest that a payday loan lender can charge in Florida is only 10%. If a company is charging you more than that, you can take legal actions against them. There are also certain restrictions regarding other charges and fee. For example, the lender cannot charge more than 15% of the principal amount of the loan as financial charges. Besides that, the verification fee should also be note more than $5.

Even if the borrower refuses to make the repayment, Florida payday loan laws do not allow lenders to file criminal charges against him/her, but yes, if necessary, they can file civil suits.

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