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 Posted: Wed Nov 12, 2008 7:07 am Subject: Florida State Laws |
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Can anyone tell me where I can find the Florida State Laws governing PDLs? Appreciate your help!
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defncw
Joined: 11 Nov 2008
Posts: 17
Debtcc Points: 294
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| Posted: Wed Nov 12, 2008 9:22 am Subject: |
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Hi,
Here are the laws for FL. FL also has come companies that are acting a CSO's, so I will post t hat info as well:
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Florida State Information
Legal Status: Legal
Citation:
Fl. Stat. Ann. § 560.401 et seq.; Rule 69V-560.901-912
Loan Terms:
Maximum Loan Amount: $500
Loan Term: 7-31 days
Maximum Finance Rate and Fees: 10% + verification fee
Finance Charge for 14-day $100 loan: $15
apr for 14-day $100 loan: 390%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: One
Rollovers Permitted: None (cannot rollover)
Cooling-off Period: 24 hours
Repayment Plan: Yes
Collection Limits:
Collection Fees: All charges imposed on the lender by any financial institution; lender not entitled to treble damages
Criminal Action: Prohibited
Where to Complain, Get Information:
Regulator: Florida Office of Financial Regulation
Address: Division of Securities and Finance, 200 E. Gaines Street Tallahassee FL 32399
Phone: (850) 410-9805
Fax: (850) 410-9748
Regulatory Contact: ,
Emails to and from the DFI:
Hello,
Do internet based payday loan lenders with no physical location in FL need to be licensed by FL to lend legally to FL consumers? I am trying to help a friend with a huge mess. She has several internet payday loans, and they are saying that they only have to be licensed in their state, and that they can follow the laws of their state, not FL's laws. What is correct? Any information would be very much appreciated!
Thanks!
Reply:
She can file a complaint through our website at flofr.com and under 'helpful information' click on file a complaint. Then click on
finance related and you can download the form. Or click on money transmitters and call the 1-800 number. The Office will review her complaint when received. All lenders must be licensed by Florida, regardless of location, however, the current payday loan laws in place do not address internet businesses. The department is currently looking at other laws to apply to them.
She may also wish to contact Legal Aid in her area, to determine what recourse she may have.
If you have further questions, please contact this Office.
Office of Financial Regulation
Pam Henley
Financial Speci alist
(850) 410-9805
What does this mean?
Internet based companies must be licensed by FL.
No Rollovers are allowed.
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_________________
HAPPY NEW YEAR!!!
To a crisis of the spirit, we need an answer of the spirit.
To find that answer, we need only look within ourselves.
When we listen to "the better angels of our nature," we find that they celebrate the simple things, the basic things--such as goodness, decency, love, kindness.
Greatness comes in simple trappings.
-Richard Milhous Nixon,
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dawnlango7
Debt Samaritan
Joined: 05 May 2008
Posts: 943
Debtcc Points: 3406
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| Posted: Wed Nov 12, 2008 9:25 am Subject: |
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This info is Texas specific, but it gives you an idea...
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What is a CSO Credit Services Organization
In essence, a CSO or Credit Services Organization is defined by the Texas Credit Services Organization Act (Section 393 of the Texas Finance Code) as an entity or person that provides one of the following services:
Improving a consumer's credit history or rating
Obtaining an extension of consumer credit for the consumer
Providing advice or assistance to a consumer regarding the previous two services
An important aspect of the CSO or Credit Services Organization model is that there IS NO LICENSING required by the state! CSO's are required to "REGISTER" with the Secretary of State, they are NOT licensed, AND THEIR FEES ARE NOT REGULATED.
How does the CSO Credit Services Organization work with payday loans?
The CSO Credit Services Organization operates as a broker, much as they did when partnering with the banks (payday loan bank model). The Texas Credit Services Organization Act (CSOA) allows the payday loan lender to register as a CSO and act as a loan broker. Thus, the CSO, previously a payday loan company, can make loans via consumer lending companies that are UNREGISTERED and UNLICENSED. The CSO Credit Services Organization acts as a broker for the consumer in need of funds by issuing a "letter-of-credit" on behalf of the consumer to a lender. This third-party unregistered lender funds the "loan" brokered by the CSO "broker".
Typically the CSO Credit Services Organization collects 3 fees:
A referral fee for referring the consumer to the unregistered, unregulated lender that actually funds the "loan". This is not stipulated by any law but is currently $20 to $30 per $100
An application fee for filling out the CSO documents; typically $10 per $100
The interest on the "loan"; Texas state law caps this at $10 per $100.
The CSO Credit Services Organization model arises from a U.S. Fifth Circuit Court of Appeals opinion, in Lovick vs. Rite Money, which held that payments to a registered CSO loan broker could not be treated as interest
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_________________
HAPPY NEW YEAR!!!
To a crisis of the spirit, we need an answer of the spirit.
To find that answer, we need only look within ourselves.
When we listen to "the better angels of our nature," we find that they celebrate the simple things, the basic things--such as goodness, decency, love, kindness.
Greatness comes in simple trappings.
-Richard Milhous Nixon,
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dawnlango7
Debt Samaritan
Joined: 05 May 2008
Posts: 943
Debtcc Points: 3406
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| Posted: Wed Nov 12, 2008 9:30 am Subject: |
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If you can tell us:
The name of the company
Amount borrowed
How much you have paid back including fees
internet or storefront
We can help you out a little more 
_________________
HAPPY NEW YEAR!!!
To a crisis of the spirit, we need an answer of the spirit.
To find that answer, we need only look within ourselves.
When we listen to "the better angels of our nature," we find that they celebrate the simple things, the basic things--such as goodness, decency, love, kindness.
Greatness comes in simple trappings.
-Richard Milhous Nixon,
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dawnlango7
Debt Samaritan
Joined: 05 May 2008
Posts: 943
Debtcc Points: 3406
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| Posted: Wed Nov 12, 2008 10:27 am Subject: |
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Thank you so much! Can you tell me what the statement below actually means by chance?
Collection Fees: All charges imposed on the lender by any financial institution; lender not entitled to treble damages
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defncw
Joined: 11 Nov 2008
Posts: 17
Debtcc Points: 294
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| Posted: Wed Nov 12, 2008 10:30 am Subject: |
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I'm not sure, but I'm sure someone will be along that can explain...
_________________
HAPPY NEW YEAR!!!
To a crisis of the spirit, we need an answer of the spirit.
To find that answer, we need only look within ourselves.
When we listen to "the better angels of our nature," we find that they celebrate the simple things, the basic things--such as goodness, decency, love, kindness.
Greatness comes in simple trappings.
-Richard Milhous Nixon,
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dawnlango7
Debt Samaritan
Joined: 05 May 2008
Posts: 943
Debtcc Points: 3406
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| Posted: Wed Nov 12, 2008 10:34 am Subject: |
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The Florida laws posted above apply only to the storefronts. The internet PDLs fall under the Florida Consumer Financial Act Ch 516. It says that the lenders must be licensed in the state and if they are not the loans are not collectable. The info about CSOs is correct. Cash Net is licensed as a CSO for example. Many will have an agreement with a check casher to piggyback on their license making it difficult to check.
_________________
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Read here how to escape the Payday Loan trap.
http://hubpages.com/hub/Escaping-the-Payday-Loan-Trap
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frogpatch
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Joined: 09 Apr 2007
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| Posted: Mon Nov 17, 2008 10:07 am Subject: CSO |
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I have payday loans with ameriloan, Arrowhead Investments, ColdCash, and Total Lending. I don't see them on my state, Florida, license list. However, does anyone know if they are CSO.
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sheco
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Debtcc Points: 100
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| Posted: Fri Nov 21, 2008 1:53 pm Subject: |
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Can anyone tell me if you can file banckruptcy on payday loans?
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