Florida began regulating payday loans in 2003 with the state’s Deferred Presentment Act. Florida state legislation regulates lenders, licenses, interest rates, loan amounts, rollovers, and more to keep payday lending safe and fair for lenders and consumers.
The length of lending terms in Florida is standard for payday lenders across the country: Payday loans online can last between 30 and 90 days, depending on the customer’s pay schedule. However most lenders will issue a cash loan for 7 days if you’re paid weekly, 14 days if you’re paid bi-weekly, and 31 days if you receive a monthly paycheck. Cash amounts for payday loans are limited to $500 per customer.
Payday loans in Florida have some of the lowest fees and interest rates in the country. Lenders may charge no more than 10% of the loan amount in interest, but are permitted to charge an additional $5 processing fee to approve the cash loan. The interest rate restrictions keep payday loans affordable for Florida residents while still allowing payday lenders to earn enough of a profit to run their business.
Payday lending presents a big risk to lenders, who don’t run credit checks on their customers. These loans are popular with consumers who have poor credit, and lenders try to make up for the risk by charging higher interest rates. Other lenders charge more interest for customers with poor credit too, however since most payday lenders operate independently of banks, their interest rates tend to be higher than other financial institutions. Still, most states that authorize payday lending keep lenders in check by discouraging predatory interest rates on cash loans.
Florida does not allow consumers to extend their payday loans with rollovers. Because rollovers are banned in Florida, lenders must check with a statewide database to make sure a customer does not have any outstanding loans before approving a new cash loan for them. If you need more time to pay off your payday loan, ask your Florida payday lender about installment plans in place of a rollover.
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