Florida Payday Loans - What does the government say about payday loans in Florida
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Florida Statute Ann. § 560.401 et seq.; Rule 69V-560.901-912, was enacted some time ago to both attract and oversee the actions and operations of Florida payday loan services. The statute sets certain limitations and capabilities for these companies, while offering rights and responsibilities to both the companies that lend the money and the consumers who borrow. The following is an outline of the rules set forth by the state to govern Florida payday loans, and assure that the best possible setting for fair and active lending is properly provided. The rules outlined in the question and answer format below may be altered from time to time by the state, and should be checked and confirmed for current accuracy:
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How much do Florida payday loans cost in terms of fees? The maximum allowed finance charge for a 14 day loan of this type in the state of Florida is $15 for every one hundred dollars that is borrowed. For the maximum payday loan in the state, this amounts to a $75 finance charge for a $500 loan repaid within 14 days. In addition to the finance charge, there may also be up to 10% charge in finance fees plus a verification fee. There are, of course limits to all of these areas rates to protect the consumer from exorbitant expenses related to borrowing the short term funds. For specific finance charges and fees, one should always inquire among the various companies that you are considering borrowing funds from; as the old adage goes "you better shop around." By checking rates from a few different Florida payday loans companies, you're likely to find that some are indeed less expensive than others. Doing a quick price comparison among three or more companies will most often result in significant savings - just as shopping around for any other deal.
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What happens if a consumer falls upon hard times and is totally unable to pay a loan on time? In cases where there has been a financial setback between the time of a Florida payday loan being obtained and repaid, and the consumer is not able to fully pay off the loan, there is the possibility of working out a repayment plan with the lender. In order to work out a repayment plan, the consumer has to be aware that the lender will, in all likelihood, have a specific list of charges that will be imposed upon the consumer - in terms of late fees and possibly non sufficient fund fees if there was a check involved in the initial transaction. Lenders are more likely to work out a payment schedule to recoup their funds because in the state of Florida they are prohibited from filing criminal actions against the borrower; while this eliminates the threat of prosecution from being posed to consumers, it does not eliminate the possibility of the lender taking court action against the borrower if there is failure and outright refusal to repay any funds.