Florida

In July of 2001, Florida passed a bill that put limits on payday loan practices. In the Florida bill it states that lenders cannot loan more than $500. The Florida bill also puts a restriction on the amount of interest payday loan lenders can charge. Currently in Florida, interest rates are capped at 10%, one of the lowest rates in the nation.

The Florida bill also puts additional restrictions on the number of loans a borrower can take out at one time. Currently under Florida law, a person is only permitted one payday loan at a time. Also, under Florida law if a person cannot payback a payday loan on time, the lender must give a 60-day grace period before collecting. This is only if the customer completes credit counseling and works out a payment plan with the lender.

This Florida bill that puts restrictions on payday loan practices was sponsored by Senator Lee Constantine. Constatine’s bill (CS/SB 1526 & 314) is the first bill of it’s kind in Florida. So far it has stopped a lot of consumers from getting caught in the treadmill of rollovers and extensions.