New Legislation raises maximum consumer finance loan interest rates

by | Jul 1, 2024



Gov. Ron DeSantis signed legislation on Friday that increases interest rates on consumer finance loans, extends delinquency charge periods, and adds new requirements for lenders.


Gov. Ron DeSantis authorized legislation on Friday that allows for an increase on interest rates on consumer finance loans.

House Bill 1347, ratified in the Florida Senate by just a three vote margin, increases allowable interest rates, extends the period before delinquency charges can be applied, and adds new requirements for branch licensing, disaster reporting, and borrower education.

The measure revises the tiered interest rate structure for consumer loans, with the maximum interest rates now sitting at 36 percent per annum on the first $10,000 of the principal amount, 30 percent per annum on amounts between $10,000 and $20,000, and 24 percent per annum on amounts between $20,000 and $25,000. The previous highest rate was 30 percent per annum on the first $3,000 prior to the new legislation.

The bill also increases the minimum period before delinquency charges can be imposed from 10 days to 12 days, giving borrowers more time to make payments.

The legislation also mandates that lenders offer a free credit education program or seminar to borrowers when a loan is made. Topics may include budgeting, credit scores, savings, and identity theft prevention.

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