InfoBytes Blog
Florida amends consumer finance loan provisions
On May 20, the Florida governor signed SB 546, which amends certain provisions related to the making of consumer finance loans. The provisions allow persons applying for a license to make and collect loans under the Florida Consumer Finance Act (FCFA) “to provide certain documents in lieu of evidence of liquid assets,” including a surety bond, certificate of deposit, or irrevocable letter of credit. The bill also prohibits licensees from charging borrowers a prepayment penalty for paying all or part of a loan’s principle before the payment due date. Additionally, provisions related to the grounds for denying a license or taking disciplinary action for certain violations for the FCFA are modified to include “[f]ailure to maintain liquid assets of at least $25,000 or a surety bond, certificate of deposit, or letter of credit in the amount required by s. 516.05(10) at all times for the operation of business at a licensed location or proposed location.” SB 546 takes effect October 1.