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Florida Payday Loans - What does the government say about payday loans in Florida

Florida State Map
Florida State Map
When it comes to states that understand the value of the cash and finance industry brings to consumers, Florida ranks very high for its intelligent handling of its regulation and management of the industry within its state. Realizing that the cash advance service is one that is much needed by the average consumer, Florida set out to establish a level playing field for companies that were seeking to become active in state. By creating a proper setting in which to do business, the state has created fertile ground for viable businesses involved in the industry to come in and set up shop. This creates a situation of accessible cash for the citizens of the state, additional tax revenue for the state itself and increases the number of jobs available in the state as well. As another white-collar service industry moves into the state, the void left by the loss of some industrial commercial tax payers will begin to fill. Additionally, the state gains the benefit of a greener outlook as opposed to its former industrial tenants.

Florida Statute Ann. ยง 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:

Florida State Flag
Florida State Flag
How much money can one borrow through a cash advance in the state of Florida? While $500 is the absolute maximum for Florida payday loans, consumers should always look at their own individual scenarios to determine what their own maximum borrowing limit should be. One must consider the fees and interest attached to a loan, and determine whether or not you will be able to comfortably pay this amount out of here next check without putting yourself further into the hole, and needing to borrow even more money to dig your way out. If your next paycheck, for example, is seven or eight hundred dollars, it may not be wise to borrow the maximum $500, considering that after repaying the $500 plus appropriate fees, you will be likely to be left with very little to pay whatever current bills may be due at that particular time. A rule of thumb for borrowing might be (if at all possible), to try and stick to borrowing only the minimum amount that you may need, and to do it at a point where you're leading up to and unencumbered paycheck - meaning that no other bills will need to be paid out of your next paycheck.

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.

Florida payday loans
Florida payday loans
How many loans am I allowed to take out any one time? To protect the consumer from the harsh realities that can come out of combining more than one loan at a time, the state of Florida only allows an individual to obtain one cash advance at any given time. Legislators, in a moment of wisdom and clarity, decided that it would be best to place this limitation on the consumer so that they would not be able to dig themselves so deep into debt that they would not possibly be able to see daylight. This particular rule also precludes the consumer from obtaining a secondary loan to pay off the first loan; in disabling this particular ability in the state, legislators were focused on cash advances becoming a never-ending cycle for consumers, if they were allowed to use one loan to pay off another. By keeping things simple and allowing one loan to be paid off at a time before another is obtained, consumers are able to see clear daylight between loans.

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.