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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1
An act relating to consumer finance loans; amending s. 2
516.01, F.S.; defining the term "branch"; amending s. 3
516.02, F.S.; prohibiting a person from operating a 4
branch of a business making consumer finance loans 5
before obtaining a license from the Office of 6
Financial Regulation; amending s. 516.03, F.S.; 7
specifying application fees for branch licenses; 8
revising the applicability of investigation fees; 9
making a technical change; amending s. 516.031, F.S.; 10
revising the maximum interest rates and the 11
calculation of interest rates on consumer finance 12
loans; revising the minimum amount of time before 13
which a delinquency charge for each payment in default 14
may be imposed; amending s. 516.15, F.S.; requiring 15
licensees offering an assistance program to borrowers 16
after a federally declared major disaster to send a 17
specified notice to the office within a certain 18
timeframe; providing construction; requiring licensees 19
to offer to borrowers credit education programs or 20
seminars; providing topics for such programs or 21
seminars; requiring that such programs or seminars be 22
free; prohibiting licensees from requiring borrowers 23
to participate in such programs or seminars as a 24
condition of receiving loans; creating s. 516.38, 25
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
F.S.; requiring licensees to file annual reports with 26
the office; providing for rulemaking by the Financial 27
Services Commission; specifying requirements for the 28
reports; providing requirements for a licensee 29
claiming that submitted information contains a trade 30
secret; authorizing the office to publish a report in 31
a certain manner; creating s. 516.39, F.S.; requiring 32
certain licensees to suspend specified actions for a 33
certain timeframe after a federally declared disast er; 34
reenacting s. 516.19, F.S., relating to penalties, to 35
incorporate the amendments made to ss. 516.02 and 36
516.031, F.S., in references thereto; providing an 37
effective date. 38
39
Be It Enacted by the Legislature of the State of Florida: 40
41
Section 1. Section 516.01, Florida Statutes, is amended to 42
read: 43
516.01 Definitions. —As used in this chapter, the term: 44
(1) "Branch" means any location, other than a licensee's 45
principal place of business, at which a licensee operates or 46
conducts business under thi s chapter or which the licensee owns 47
or controls for the purpose of conducting business under this 48
chapter. 49
(2)(3) "Commission" means the Financial Services 50
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
Commission. 51
(3)(1) "Consumer finance borrower" or "borrower" means a 52
person who has incurred ei ther direct or contingent liability to 53
repay a consumer finance loan. 54
(4)(2) "Consumer finance loan" means a loan of money, 55
credit, goods, or choses in action, including, except as 56
otherwise specifically indicated, provision of a line of credit, 57
in an amount or to a value of $25,000 or less for which the 58
lender charges, contracts for, collects, or receives interest at 59
a rate greater than 18 percent per annum. 60
(5)(8) "Control person" means an individual, partnership, 61
corporation, trust, or other organiza tion that possesses the 62
power, directly or indirectly, to direct the management or 63
policies of a company, whether through ownership of securities, 64
by contract, or otherwise. A person is presumed to control a 65
company if, with respect to a particular company , that person: 66
(a) Is a director, general partner, or officer exercising 67
executive responsibility or having similar status or functions; 68
(b) Directly or indirectly may vote 10 percent or more of 69
a class of a voting security or sell or direct the sale o f 10 70
percent or more of a class of voting securities; or 71
(c) In the case of a partnership, may receive upon 72
dissolution or has contributed 10 percent or more of the 73
capital. 74
(6)(5) "Interest" means the cost of obtaining a consumer 75
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
finance loan and incl udes any profit or advantage of any kind 76
whatsoever that a lender may charge, contract for, collect, 77
receive, or in anywise obtain, including by means of any 78
collateral sale, purchase, or agreement, as a condition for a 79
consumer finance loan. Charges speci fically permitted by this 80
chapter, including commissions received for insurance written as 81
permitted by this chapter, shall not be deemed interest. 82
(7)(6) "License" means a permit issued under this chapter 83
to make and collect loans in accordance with thi s chapter at a 84
single place of business. 85
(8)(7) "Licensee" means a person to whom a license is 86
issued. 87
(9)(4) "Office" means the Office of Financial Regulation 88
of the commission. 89
Section 2. Subsection (1) of section 516.02, Florida 90
Statutes, is amended to read: 91
516.02 Loans; lines of credit; rate of interest; license. — 92
(1) A person must not engage in the business of making 93
consumer finance loans or operate a branch of such business 94
unless she or he is authorized to do so under this chapter or 95
other statutes and unless the person first obtains a license 96
from the office. 97
Section 3. Subsection (1) of section 516.03, Florida 98
Statutes, is amended to read: 99
516.03 Application for license; fees; etc. — 100
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
(1) APPLICATION.—Application for a license to make loans 101
under this chapter shall be in the form prescribed by rule of 102
the commission. The commission may require each applicant to 103
provide any information reasonably necessary to determine the 104
applicant's eligibility for licensure. The applicant sha ll also 105
provide information that the office requires concerning any 106
officer, director, control person, member, partner, or joint 107
venturer of the applicant or any person having the same or 108
substantially similar status or performing substantially similar 109
functions or concerning any individual who is the ultimate 110
equitable owner of a 10 -percent or greater interest in the 111
applicant. The office may require information concerning any 112
such applicant or person, including, but not limited to, his or 113
her full name and any other names by which he or she may have 114
been known, age, social security number, residential history, 115
qualifications, educational and business history, and 116
disciplinary and criminal history. The applicant must provide 117
evidence of liquid assets of at least $25,000 or documents 118
satisfying the requirements of s. 516.05(10). At the time of 119
making such application, the applicant shall pay to the office a 120
nonrefundable biennial license fee of $625 for the principal 121
place of business and for each branch appl ication filed. 122
Applications for a license for the principal place of business , 123
except for applications to renew or reactivate a license, must 124
also be accompanied by a nonrefundable investigation fee of 125
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$200. An application is considered received for purpos es of s. 126
120.60 upon receipt of a completed application form as 127
prescribed by commission rule, a nonrefundable application fee 128
of $625, and any other fee prescribed by law. The commission may 129
adopt rules requiring electronic submission of any form, 130
document, or fee required by this chapter act if such rules 131
reasonably accommodate technological or financial hardship. The 132
commission may prescribe by rule requirements and procedures for 133
obtaining an exemption due to a technological or financial 134
hardship. 135
Section 4. Subsection (1) and paragraph (a) of subsection 136
(3) of section 516.031, Florida Statutes, are amended to read: 137
516.031 Finance charge; maximum rates. — 138
(1) INTEREST RATES. —A licensee may lend any sum of money 139
up to $25,000. A licensee may not t ake a security interest 140
secured by land on any loan less than $1,000. The licensee may 141
charge, contract for, and receive thereon interest charges as 142
provided and authorized by this section. The maximum interest 143
rate shall be 36 30 percent per annum, comput ed on the first 144
$10,000 $3,000 of the principal amount; 30 24 percent per annum 145
on that part of the principal amount exceeding $10,000 $3,000 146
and up to $20,000 $4,000; and 24 18 percent per annum on that 147
part of the principal amount exceeding $20,000 $4,000 and up to 148
$25,000. The original principal amount as used in this section 149
is the same as the amount financed as defined by the federal 150
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
Truth in Lending Act and Regulation Z of the Board of Governors 151
of the Federal Reserve System. In determining compliance with 152
the statutory maximum interest and finance charges set forth 153
herein, the computations used shall be simple interest and not 154
add-on interest or any other computations. If two or more 155
interest rates are applied to the principal amount of a loan, 156
the licensee may charge, contract for, and receive interest at 157
that single annual percentage rate which, if applied according 158
to the actuarial method to each of the scheduled periodic 159
balances of principal, would produce at maturity the same total 160
amount of interest as would result from the application of the 161
two or more rates otherwise permitted, based upon the assumption 162
that all payments are made as agreed. 163
(3) OTHER CHARGES.— 164
(a) In addition to the interest, delinquency, and 165
insurance charges provided in this section, further or other 166
charges or amount for any examination, service, commission, or 167
other thing or otherwise may not be directly or indirectly 168
charged, contracted for, or received as a condition to the grant 169
of a loan, except: 170
1. An amount of up to $25 to reimburse a portion of the 171
costs for investigating the character and credit of the person 172
applying for the loan; 173
2. An annual fee of $25 on the anniversary date of each 174
line-of-credit account; 175
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
3. Charges paid for the brokerage fee on a loan or line of 176
credit of more than $10,000, title insurance, and the appraisal 177
of real property offered as security if paid to a third party 178
and supported by an actual expenditure; 179
4. Intangible personal property tax on the loan note or 180
obligation if secure d by a lien on real property; 181
5. The documentary excise tax and lawful fees, if any, 182
actually and necessarily paid out by the licensee to any public 183
officer for filing, recording, or releasing in any public office 184
any instrument securing the loan, which may be collected when 185
the loan is made or at any time thereafter; 186
6. The premium payable for any insurance in lieu of 187
perfecting any security interest otherwise required by the 188
licensee in connection with the loan if the premium does not 189
exceed the fees which would otherwise be payable, which may be 190
collected when the loan is made or at any time thereafter; 191
7. Actual and reasonable attorney fees and court costs as 192
determined by the court in which suit is filed; 193
8. Actual and commercially reasonable ex penses for 194
repossession, storing, repairing and placing in condition for 195
sale, and selling of any property pledged as security; or 196
9. A delinquency charge for each payment in default for at 197
least 12 10 days if the charge is agreed upon, in writing, 198
between the parties before imposing the charge. Delinquency 199
charges may be imposed as follows: 200
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
a. For payments due monthly, the delinquency charge for a 201
payment in default may not exceed $15. 202
b. For payments due semimonthly, the delinquency charge 203
for a payment in default may not exceed $7.50. 204
c. For payments due every 2 weeks, the delinquency charge 205
for a payment in default may not exceed $7.50 if two payments 206
are due within the same calendar month, and may not exceed $5 if 207
three payments are due wit hin the same calendar month. 208
209
Any charges, including interest, in excess of the combined total 210
of all charges authorized and permitted by this chapter 211
constitute a violation of chapter 687 governing interest and 212
usury, and the penalties of that chapter app ly. In the event of 213
a bona fide error, the licensee shall refund or credit the 214
borrower with the amount of the overcharge immediately but 215
within 20 days after the discovery of such error. 216
Section 5. Subsections (5) and (6) are added to section 217
516.15, Florida Statutes, to read: 218
516.15 Duties of licensee. —Every licensee shall: 219
(5) In the event of a Federal Emergency Management Agency 220
response to a Presidential Disaster Declaration in the state, if 221
the licensee offers any assistance program to borrowers impacted 222
by the disaster, within 10 days after the licensee's 223
establishment of the program, send written notice to the office 224
in physical or electronic format and include all of the 225
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
following information, subject to change as any additional 226
declaration is issued or any declaration is revoked: 227
(a) The licensed locations affected by the disaster 228
declaration, including the physical addresses, if applicable. 229
(b) The telephone number, e -mail address, or other contact 230
information for the licensee. 231
(c) A brief description of the assistance program 232
available to borrowers in the affected areas. 233
(d) The start date, and end date if known, of the 234
assistance program. 235
236
For purposes of this subsection, assista nce programs may 237
include, but are not limited to, deferments, forbearance, 238
waivers of late fees, payment modifications, or changes in 239
payment due dates. 240
(6) Offer the borrower at the time a loan is made a credit 241
education program or seminar provided, in writing or by 242
electronic means, by the licensee or a third -party provider. The 243
credit education program or seminar may address, but need not be 244
limited to, any of the following topics: 245
(a) The importance and methodology of establishing a 246
household budget. 247
(b) The impact, value of, and ways to improve a credit 248
score. 249
(c) The importance and methodology of establishing 250
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household savings. 251
(d) Ways to obtain a free copy of a credit report. 252
(e) Ways to dispute an error in a credit report. 253
(f) Ways to manage and prevent identity theft. 254
255
A credit education program or seminar offered under this 256
subsection must be offered at no cost to the borrower. A 257
licensee may not require a borrower to participate in a credit 258
education program or seminar as a condition of receiving a loan. 259
Section 6. Section 516.38, Florida Statutes, is created to 260
read: 261
516.38 Annual reports by licensees. — 262
(1) By March 15, 2025, and each March 15 thereafter, a 263
licensee shall file a report with the office in a form and 264
manner prescribed by commission rule. The report must include 265
each of the items specified in subsection (2) for the preceding 266
calendar year using aggregated and anonymized data and without 267
reference to any borrower's nonpublic personal information. 268
(2) The report must include the following information for 269
the preceding calendar year: 270
(a) The number of locations held by the licensee under 271
this chapter as of December 31 of the preceding calendar year. 272
(b) The number of loan originations by the licensee from 273
all licenses held under this chapter during the preceding 274
calendar year. 275
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
(c) The total dollar amount of loans and the number of 276
loans outstanding with the licensee from all licenses held under 277
this chapter as of December 31 of the preceding calendar year. 278
(d) The total dollar amount of loans and the number of 279
loans in which the licensee holds a security interest in 280
collateral as of December 31 of the preceding calendar year. 281
(e) The total dollar amount of loans and the number of 282
unsecured loans as of Decem ber 31 of the preceding calendar 283
year. 284
(f) The total number of loans, separated by principal 285
amount, in the following ranges as of December 31 of the 286
preceding calendar year: 287
1. Up to and including $5,000. 288
2. Five thousand and one dollars to $10,000. 289
3. Ten thousand and one dollars to $15,000. 290
4. Fifteen thousand and one dollars to $20,000. 291
5. Twenty thousand and one dollars to $25,000. 292
(g) The total dollar amount of loans and the number of 293
loans charged off as of December 31 of the preceding calendar 294
year. 295
(h) The total dollar amount of loans and the number of 296
loans with delinquency status listed as: 297
1. Current or less than 30 days past due. 298
2. From 30 to 59 days past due. 299
3. From 60 to 89 days past due. 300
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
4. At least 90 days past due. 301
(3) A licensee claiming that any information submitted in 302
the report contains a trade secret must submit to the office an 303
accompanying affidavit in accordance with s. 655.0591 and 304
designate the inform ation claimed to be a trade secret pursuant 305
to s. 655.0591. 306
(4) The office may publish a report of information 307
submitted pursuant to this section, provided that all data 308
published in the report is anonymized and aggregated from all 309
licensees. 310
Section 7. Section 516.39, Florida Statutes, is created to 311
read: 312
516.39 Suspension of penalties and remedial measures after 313
federal disaster declaration. —In the event of a Federal 314
Emergency Management Agency response to a Presidential Disaster 315
Declaration in the state, a licensee operating in a county 316
designated in the declaration must suspend for a period of 90 317
days after the date of the initial declaration the following: 318
(1) The application of delinquency charges under s. 319
516.031(3)(a)9. 320
(2) Repossessions of collateral pledged to loans made 321
under this chapter. 322
(3) The filing of civil actions for the collection of 323
amounts owed for loans made under this chapter. 324
Section 8. For the purpose of incorporating the amendments 325
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made by this act to sections 516. 02 and 516.031, Florida 326
Statutes, in references thereto, section 516.19, Florida 327
Statutes, is reenacted to read: 328
516.19 Penalties.—Any person who violates any of the 329
provisions of s. 516.02, s. 516.031, s. 516.05(3), s. 516.05(6), 330
or s. 516.07(1)(e) comm its a misdemeanor of the first degree, 331
punishable as provided in s. 775.082 or s. 775.083. 332
Section 9. This act shall take effect July 1, 2024. 333