Payday Loans and Cash Advance in Florida
About the Florida payday loan and cash advance industry
In the past payday loans and cash advances have carried a bad name. Extravagant loans that the person would never be able to pay back in a short period of time, extra fees, high interest rates, and shady collection schemes were used by certain lenders in order to take advantage of their clients. However, many states have stepped in, creating rules and regulations that payday loan and cash advance offices must follow.
A bill was passed in 2001 that placed restrictions on cash advances in the state of Florida. The bill, CS/SB 1526 & 314, specified a max amount of $500 that can be borrowed. The interest rate, lower in Florida than almost any other state, is capped at 10 percent, though the lender may charge a verification fee. The bill also stipulates that only one payday loan per person can be taken out at a time. If the person taking out the loan is unable to pay the money back by the due date, than the lender is required to extend an extra 60-day grace period to the defaulter, under the condition that the defaulter takes credit counseling sessions and designs a payback plan with the lender.
With these new regulations, cash advances and payday loans have once again become a legitimate way to obtain money in a time of need, and is in fact a preferred method of lending.