Although payday lending is allowed in Florida, it is subject to tight regulations. If you have a problem with a payday lender in Florida, you can seek help from the state. However, if you got your loan from an out-of-state lender, via the Internet, or over the phone, Florida’s assistance may be restricted. At any given moment, you can only have one outstanding payday loan. A central database keeps track of all loans. You must wait a 24-hour cooling-off period after repaying the loan before applying for another payday loan.
Payday Lending Restrictions in Florida
Payday lenders are referred to as “delayed presentment providers” under Florida law. (See Fla. Stat. Ann. 560.402 and subsequent). Payday lending is restricted in a number of ways. The law imposes restrictions.
- the loan’s principal;
- the maximum amount of outstanding loans you can have;
- the loan’s term, fees and costs that can be charged, and the collection process if you don’t pay.
The Loan’s Value
Payday advances in Florida are limited to $500 with no exceptions. (See Florida Statute Ann. 560.404).
Loans in Number
At any given moment, you can only have one outstanding payday loan. A central database keeps track of all loans. You must wait a 24-hour cooling-off period after repaying the loan before applying for another payday loan. (See Florida Statute Ann. 560.404).
Term of the Loan
Payday loans must be for a minimum of seven days and a maximum of 31 days. In addition, rollovers are not permitted. (“Rolling the loan over” means deferring payment of the debt for a charge.) If you take out a 14-day payday loan, for example, the lender isn’t allowed to roll the loan over, charging fees again, for another 14 days—even if the total length of time is less than 31 days. When you take out a loan, the term is determined. If you can’t pay, you can extend the loan term without incurring any additional fees or interest.
The Loan’s Value
Payday advances in Florida are limited to $500 with no exceptions.
Fees are limited.
The costs that a payday loan lender can collect are limited to 10% of the loan amount plus a $5 verification fee under Florida law.
There is a grace period.
If you can’t pay off the loan in full by the end of the term, the lender must give you a 60-day grace period at no extra cost. You must make an appointment with a Consumer Credit Counseling Service within seven days and complete the counseling within the 60-day grace period to qualify for the grace period.
