An Overview of Payday Loan Laws for the State of Florida

By: Javi Calderon
An Overview of Payday Loan Laws for the State of Florida

Over the last several years the economy in the United States has gone through a process of restructuring. New jobs are being created every day, and jobs that have been around for years are disappearing. For this reason many people and many families have fallen into financial trouble. This has fueled the rise of the payday loan industry which in response to the recession has flourished. Though there are many legitimate and respectable payday loan lenders offering their services, the multitude of scams have given the payday loan industry a bad rap. Regardless of what state you live in, it is important to research several companies and make sure the one you settle on is trusted and respected. Equally important is understanding the specific laws that apply in the state in which you reside. Following is an outline of payday loan laws for Florida:

Florida State Laws on Payday Cash Advance Loans

•   Under Florida state law it is illegal to provide deferred presentment transactions, otherwise known as payday cash advance loans. Therefore, reputable lenders will be sure to display their license somehow. If you are still unsure, you can check with the Office of Financial Regulation for the State of Florida, which is the department that oversees payday loans.

•   Payday loan lenders in the State of Florida cannot charge over 10% the amount of the loan in interest. However, they are legally allowed to add a verification fee. The absolute maximum annual percentage rate is 18%

•   The maximum payday advance loan limit is $500 with a loan term of 7 - 31 days.

•   No criminal legal action can be taken against a customer who is unable to pay; only civil suits can be filed by the lender under Florida state law. This means that customer who is unable to pay back their loan cannot be arrested.

•   In the State of Florida payday loan lenders cannot garnish your wages in return for an unpaid loan without your prior consent.

The State of Florida has taken drastic measures to curtail payday advance loans, but options are still available under these specific regulations. If you find yourself in an unexpected financial bind, and need a cash advance, do your research and make sure the lender you settle with operates within these restrictions.