Florida Payday Loan Laws

Florida is one state where lawmakers have made payday loans somewhat difficult for the lender and the consumer. However, most of the laws pertain to the payday lending company.

• Maximum Payday Loan Amount – $500 dollars
• Minimum Payday Loan Terms – Seven days
• Maximum Payday Loan Terms – 31 days
• Maximum Quantity of Outstanding Payday Loans – Only one
• Maximum Amount of Payday Loan Extensions – Zero
• Maximum Payday Annual Percentage Rate (APR) – 390 percent
• Maximum Payday Financing Interest Fees – $15 dollars
• Maximum Payday Annual Financing Interest Rates – Ten percent
• Maximum Allotted NSF Check Fees – None by the lender
• Maximum Allowed Criminal Actions – None

Some users of payday loans do not like the idea they cannot extend their loan should they have an issue with repayment. Many consumers end up defaulting on their loans or write NSF checks in hopes to buy a little time. Luckily, they will only have to deal with their bank’s fees. However, the Florida payday laws do allow the customer 24 hours to decide to back out of the payday loan if they choose without consequences.

Large portions of the residents in Florida are retired elderly and impoverished immigrants. These are the biggest demographics payday lenders target with their advertising aside from targeting the poorest communities and neighborhoods. The lenders entice them with taglines such as instant cash, emergency cash, no credit check loans and easy payment plans.

Once the payday lender has a customer in their grasp, he or she is now subject to predatory lending practices. Matters can be even graver for their client if the lender is utilizing any loopholes in the payday laws and regulations. For instance, some lenders do not even operate out of Florida and many times outside of the country. The unsuspecting borrower may end up paying well over the already high APR rate of 390 percent, such as 790 percent or more.

Every borrower has to educate themselves on payday loans and the never ending cycle of debt, they could be getting themselves into. When dealing with online payday lenders especially. IF the consumer can find no physical address in Florida for the lending company, chances are they are predator lenders. Also, the terms of the payday loan need to be displayed clearly and easy to understand. Some lenders try to bypass the laws by using sneaky tactics, like burring the fees and interest rates within the long winded legal wording of the agreements.

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