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Payday loans

State of Florida opposes federal regulations against payday loans

New nationwide regulations being created by the Consumer Financial Protection Bureau will potentially put 70 percent of payday lenders out of business. It has been argued that payday lending is a way for those with poor or limited credit to legally obtain money in times of need. Without payday lending, or in the event that the government imposes heavy regulations on the existing Florida law, citizens may find themselves turning to illegal ways of getting financial help. If financial trouble strikes you, it is important that you consult a team of bankruptcy attorneys in Florida and learn about the choices available to you.

Not only is the Sunshine State voicing their opposition to possible government regulations against payday loans, but it’s also proposing that the country adopt Florida’s current system which has been very successful providing short-dollar loans.

Below are the regulations for payday lending in the state of Florida:

  • Amount of the loan: Payday loans may not exceed $500.
  • Number of loans: An individual may have only one outstanding payday loan at a time. After the loan is paid back, there is a 24-hour period before another payday loan may be requested.
  • Term of the loan: A payday loan may not be written for less than 7 days, or greater than 31 days. Rolling over a loan is also unlawful.
  • Grace period: If a loan is unable to be repaid when the agreed upon contract term expires, the individual is allocated a 60-day grace period. In order to take advantage of this period, one must: (1) schedule an appointment with a credit counseling agency within 7 days of the original due date, and (2) finish the credit counseling in its entirety within the 60-day grace period given. A repayment plan may be recommended by the counseling agency, in which case the individual will be afforded the opportunity to repay the debt without being subjected to any additional fees or costs.
  • Fees and costs: The maximum fee that can be charged on a payday loan in the state of Florida is 10 percent of the loan amount. The maximum verification fee cost that may be charged is $5 per loan.
  • Collection: If an individual provides a check to the payday lender that does not clear the bank and he is not able to pay the sum in another fashion, there are limitations as to what actions the payday lender is legally allowed to pursue. The payday lender may not pursue criminal action. The payday lender can demand payment, but as stated above, costs against the individual are limited to 10% of the loan amount, the $5 verification fee, and also any bad check fees that were charged by the lender’s bank.

If you find yourself in financial trouble, or want to learn more about the options you have, Kelley and Fulton invites you to schedule a consultation to speak with our experienced bankruptcy attorneys in Florida today.