Florida State Laws
Date: Wed, 11/12/2008 - 06:07
Hi, Here are the laws for FL. FL also has come companies tha
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:
[quote]Quote:
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.
[/quote]
This info is Texas specific, but it gives you an idea... Quote:
This info is Texas specific, but it gives you an idea...
Quote:
Quote: 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 |
If you can tell us: The name of the company Amount borrowed H
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 :)
Thank you so much! Can you tell me what the statement below act
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
I'm not sure, but I'm sure someone will be along that can explai
I'm not sure, but I'm sure someone will be along that can explain...
The Florida laws posted above apply only to the storefronts. The
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.
Can anyone tell me if you can file banckruptcy on payday loans?
Can anyone tell me if you can file banckruptcy on payday loans?
Unlicensed Check Casher in Florida
First of all this is a true story. My ex-wife who I still live with gave a friend two Chase checks to hold in the total amount of $4000. The friend gave her two checks for $1000 each. This is a 50 % interest rate and then fees if any payment was late. No paperwork or receipts ever given to my ex. When the notes were paid, she still did not return the chase checks. Now this friend has 2 personal checks with my name on them that I did not authorize and she came to see me about collecting on them. First check for $3500 and second check for $1500. The friend gave back charged $1000 for the first check and $500 for the second check. Also has ex-wifes jewelry and at on time had title to 2 of my cars, also without my knowledge. No contracts or receipts ever given for money my ex paid her. How can I get her out of this mess without paying more money and can I file loan sharking charges against the friend.